For running a successful business, an owner always needs to have sufficient cash in hand. All thanks to the various SME loan in India that financially supports the budding entrepreneurs to let their business survive and grow. Although there are many traditional financiers also that can help you with funds on easy interest rates but people now prefer taking loans for new sources like:
• Banks
From clearing personal loans to giving away working capital loan, almost every bank in India now offer various types of business loans to support new and existing SME entrepreneurs. But before you take loan from bank make sure to study the market well. Compare the interest rates and other important things before finalizing any one of them.
• Financial institutions
Besides the banks, there are many other certified and registered financial institutions also which offer collateral free business loan. Whether you want it for meeting your daily business requirements or for business expansion purpose; they can support your every kind of business need.
• Financial web portals
All thanks to the digital India which has given a platform to many fund-raising websites also. Search and explore the internet to find suitable financial lender who is ready to give away finances to meet your business needs. But before you enroll for any one of them make sure to check their authenticity.
Apart from the private financial institutions even Government of India distributes SME loan by joining hands with following financial bodies:
• The credit guarantee fund scheme (CGS) for micro and small enterprises
Providing credit facilities to the SME borrowers by making collateral free funds available to both existing as well as new enterprises; this scheme is run by GoI in collaboration with SIDBI (Small Industries development Bank of India).
• MUDRA (Micro units development and Refinance agency)
This scheme can provide loan upto 10 Lakhs to all non-corporate, non-farm and small and micro enterprises. Providing term loan to enterprenuers, this scheme has three products namely; Shishu, Kishore and Tarun to meet the funding needs of the borrower.
• Stand Up India Scheme
Facilitating bank loan for the amount in between 10 lakh to 1 crore, this finance scheme is specifically designed for SC, ST and women entrepreneurs. But this scheme is available for only green field projects in manufacturing, trading and service sector.
So, if you too own a SME and are facing a situation of cash crunch don’t forget to take up SME loan in India.
Sunil Mishra