The electrical parts and equipment industry in India is a vital part of the country’s growth story, powering everything from homes to large-scale industries. This sector produces essential products like transformers, switchgear, circuit breakers, cables, and wiring devices, ensuring that electricity is generated, transmitted, and distributed efficiently. The industry is a mix of big companies and a vast number of small and medium enterprises (MSMEs), all playing a crucial role in the economy.
For many MSMEs, securing business financing is a lifeline that allows them to expand their operations, adopt new technologies, and keep up with larger players. This funding is essential for innovation and staying competitive in an ever-evolving market. The government’s “Make in India” initiative and the growing emphasis on renewable energy are creating exciting opportunities, and driving the industry to new heights. As cities grow and infrastructure develops, the demand for smart, efficient electrical solutions increases, pushing the industry towards more sustainable and advanced practices. With the right support and resources like loan for electrical parts and electrical business, these MSMEs can continue to thrive, contributing significantly to India’s economic and technological progress.
Loan for electrical parts business can be obtained by electrical shops, as well as electrical parts and equipment manufacturers. These loans can be for working capital requirements or machinery purchase requirements. Kinara Capital, an RBI-registered fintech NBFC, offers working capital loans for MSMEs including electrical parts and equipment businesses. The company provides short-term working capital loans for a period of 6-12 months and long-term working capital loans for a tenure of 12-60 months. These loans can be accessed easily and have beneficial features like easy repayment and interest rate calculated on a reducing rate basis. They can be used to cover a wide range of everyday expenses for your business, from employee salaries and overheads to product portfolio and reach expansion.
Similarly, Kinara’s Machinery Purchase Loans, which have the same advantages, can be used to buy new or second-hand machinery required by manufacturing businesses involved in the electrical parts and equipment sector. These collateral-free loans allow MSMEs to purchase expensive, cutting-edge machinery to stay competitive in the electrical market.
Business loans for electrical equipment can help electricals manufacturing units and electronic parts shop owners to manage their expenses and invest in the long-term growth of their businesses. The electricals market is a competitive one, and in order to stay ahead of the curve, these MSME owners must invest in machinery that provides fast and high-quality output. However, these machines can be prohibitively expensive, making it impossible for MSMEs to acquire them, as they have access to limited resources. A Machinery Loan can enable MSME entrepreneurs to get the machinery they need to scale up their operations.
Working Capital Loans for electrical businesses can help them manage cash flows by covering day-to-day business expenses or emergency expenditures. They can also allow business owners to invest in the long-term growth of their businesses by investing in raw materials to expand their product portfolio, invest in marketing, improve their business premises to draw more customers, etc.
Business loan eligibility to get a loan for electrical equipment business can vary from lender to lender. In the case of Kinara Capital, business loan eligibility criteria include:
You can take a 1-minute eligibility check on the myKinara App to find out if you qualify.
All lenders have some specific documents required for business loans. To apply for a business loan for electrical equipment from Kinara Capital, you will need the following documents:
If you own an electronic parts shop or electric equipment business, you might have different kinds of business loan requirements. The two primary ones are machinery purchase requirements and working capital requirements. You can also opt for a Bill Discounting loan for electric parts business to take care of cash flows if payments are delayed. Here are the steps you need to follow to apply for business loan from Kinara Capital:
Step 1: Quick Eligibility Check
In less than a minute, you can find out if your business qualifies for the loan! You can access the eligibility check in seven different languages available on our website for a seamless experience.
Step 2: Screening
The business and the entrepreneur are screened following Kinara’s MSME loan criteria by validating the KYC and registration details.
Step 3: Document Upload
You need to submit your KYC, applicant, co-applicant, business KYC (ID and address proof), applicant PAN Card, business registration document, last 12 months’ bank statements, GST registration (if available), and business vintage proof.
Step 4: Loan Approval
Once you complete the process, your loan application will be reviewed, and if everything is in place, the Kinara officers will approve your MSME loan.
Step 5: Disbursement
Once your loan is approved, you will receive the loan amount directly in your account within 24 hours.
To maximize the benefits of business loan for electrical business, you have to have a proper business plan in place and chalk out how you are going to utilize the loan amount. Failing that, the loan might not be properly utilized, and you will not be able to optimize the outcomes for your business. Once you have a clear idea of how you intend to use the loan, make a budget and allocate the amount according to timelines and requirements. For instance, if you own an electricals shop, the festive season is likely to be a time of higher sales for you. By timing the loan correctly, you can make the most of this high demand by keeping your inventory stocked, as well as promoting your business by offering discounts and ads.
Make sure to stay on your repayment schedule to avoid fines and penalties. This will also help you improve your credit score and build a good relationship with the lender, leading to easy access to further financing in the future. You can also maximize the benefits of your loan by planning ahead for prepayment, so that you can close your loan in advance and opt for more financing to boost your business.
Kinara Capital is an RBI-registered fintech NBFC that has already helped 79,000+ MSME entrepreneurs by providing easy access to collateral-free business loans. The company caters to many sub-sectors, of which electrical parts and equipment is one. Kinara provides fast and flexible business loan to help MSMEs scale. If you are a business owner involved in the manufacturing or sale of electrical parts and equipment, an unsecured business loan from Kinara Capital could be the perfect choice to grow your business.
With a loan for electrical parts business from Kinara, you can tide over business expenses and invest in the growth of your company. The business loan can facilitate machinery purchase, inventory stocking, improving your premises, hiring skilled labour, expanding your footprint, etc. On the whole, these initiatives will lead to the long-term expansion of your electricals business, helping you stay ahead in a competitive market. Business loans are a great way to capitalize on timed opportunities, and are particularly beneficial for MSMEs, which might not have the liquidity or resources to tackle unexpected expenses. Kinara’s loans can be accessed through an end-to-end digital process, which requires minimal documentation. Once approved, you will receive your loan directly in your bank account within just 24 hours, making sure that you have capital when you need it.
The electrical parts and equipment sector in India is a burgeoning one, which has massive growth potential given that the country’s infrastructure is growing rapidly and urbanization is increasing. For MSMEs involved in the sector, it’s crucial to ensure that they can stay competitive as the market becomes more saturated with players. In order to do this, entrepreneurs must invest in the scaling up and improvement of their operation, and the best way to finance this is through collateral-free business loans. Kinara Capital offers easy access to fast and flexible business loans, without the need for collateral, making it the perfect choice for electricals businesses.
1. How long does it take to get a business loan approved?
Kinara Capital’s tech-led decisioning model allows for fast approvals. You can get your business loan in just 24 hours.
2. What types of loans are available for electrical parts and equipment businesses?
Electrical parts and equipment businesses can get Machinery Loans and Working Capital Loans, depending on their requirements.
3. How much can I borrow for my electrical parts and equipment business?
Kinara Capital provides loans of Rs. 1 lakh to Rs. 30 lakhs for MSMEs.
4. Are there specific loans for purchasing new equipment?
Kinara Capital provides Machinery Loans to manufacturing businesses, which are designed for the purchase of new or second-hand machinery.
5. How important is a business plan in the loan application process?
A business plan is crucial to give the lender a sense of confidence in your credibility and capability to properly utilize and repay a loan. It can greatly increase the chances of loan approval.
