Business Loan

The Government of India has initiated various government-backed business loans for funding support to individuals, business owners, SMEs and MSMEs engaged in Trading, Manufacturing and Services activity.

Kirana stores have been a common feature in every nook and corner of India for a long time. The 2nd Covid wave in India has once again brought about lockdowns which have resulted in the closing of business establishments across various parts of the country, except for essential shops which are allowed to remain open for limited hours during the lockdown.

Small businesses need constant requirements of funds and a steady cash flow for their day-to-day business activities.

The data provided by the Ministry of Statistics and Programme Implementation compiled in the Sixth Economic Census, states that 14% of entrepreneurs in India are women entrepreneurs, which is equivalent to a whopping 8.05 million women entrepreneurs.

Many entrepreneurs get jitters when we talk about loan repayment. They consider it to be highly complicated and need meticulous planning to repay the business loan. It is rather a matter of disciplined debt management and financial planning that are required to pay off your business loan without a hitch

Business loans are required at various stages of business activities like expansions, purchase of working capital, equipment etc., so as to maintain consistent cash flow for ensuring smooth business operations. Business loans carry an interest charge which is deductible as an expense from your gross income.

If you have recently thought of a business idea, chances are, that you may have come across the term business roadmap. While it may sound like an easy-to-make business plan, a business roadmap is a strategic document that charts out your company’s long-term direction and the steps needed to get there. It is a broad guideline - unlike lengthy business plans, it is not about fine details but the big picture.

Business loans are essential for any business operations especially if it is ready to expand or has many market opportunities available to explore. While availing a business loan may sometimes be tricky, especially if it’s a new business, there are many ways in which it can be easily sought.

The government of India recently extended the Emergency Credit Line Guarantee Scheme (ECLGS) for Micro Small and Medium Enterprises (MSMEs) by one month until 30th November. This extension was announced by the Union Finance Minister via a series of tweets posted on Twitter.

India is considered to be one of the top breeding grounds for start-ups. Today, it ranks number three in the world in the start-up business category. With immense entrepreneurial capability and passion for business, Indians are entering the start-up genre like never before.

India is one of the major emerging markets in the world at the moment. A major portion of this growth comes from the micro, small and medium enterprises including startups. The SME sector makes up nearly 40% of the total GDP and is a major source of employment for the growing population of India.

Businesses need to raise funds at different stages, sometimes even after the initial expenditure of setting up a business is met. It may require additional capital for smooth functioning.

Running a small business is deeply satisfying – it’s the path to pursuing one’s dreams and passions. However, owning a business isn’t a piece of cake. There are plenty of challenges and hurdles to cross.

You have a great business idea. Now, you want to start executing it. The first hurdle that you're likely to come across is – lack of funding. Capital is the bloodline of any successful startup venture.

Most businesses – irrespective of their size, nature, or industry – have to borrow money at some point in their lifecycle. Be it to get off the ground, expand operations, or to weather a rough patch – borrowing is a crucial and essential part of all businesses.

The growth of a business is hugely dependent on the continuous flow of funds and that may be required to fulfil an order, purchase equipment, expand the business, pay to the workforce, etc.

Debt vs. Equity Funding: Analysing the Pros and Cons for Startups

Obtaining the necessary credit at the appropriate time is crucial for any business endeavour. Initial capital and working capital are required to run any industry smoothly. Large scale industries have never had any difficulty in securing credit for their enterprises, because of the perception that they offer the highest employment opportunities to the general population.

The National Minorities Development & Finance Corporation (NMDFC) has numerous financial funding schemes in place to encourage entrepreneurs from the Minority population in setting up their business units. One such scheme is the Term Loan Scheme – Credit Line 2 under the Self Employment Lending Scheme.

All businesses require steady cash flow to maximise growth opportunities. One of the biggest hurdles faced by micro, small and medium enterprises (MSMEs) is that it’s difficult to get business loans from traditional lenders due to lack of collateral and other assets.

A business loan is one of the biggest financial commitments you will have in your life, which means you should be prepared to bargain for the best offer. In India, there are many banks that offer term loans, small business loans and many of them are negotiable. Therefore, you will have to negotiate for the best during the loan process.