Indian MSMEs need a proper channel for selling their products. Walmart/Amazon in India are mainly supporting in importing the products rather than exporting / procuring local products. Is there any plan for building a portal like Alibaba to strengthen our MSME sector in India?
Questioned by Anubhav Singh, Uttar Pradesh
The government plans to develop a portal for creating a market place like Alibaba where all stakeholders from India's MSME sector can find the demand and supply inputs. The Union Minister Nitin Gadkari said that India is developing an e-market portal like Alibaba which will be called Bharat Craft. The government is looking at the MSME sector for its huge potential to generate income and employment, boost exports and its contribution to economic growth.
I would like to start a bopp tape manufacturing unit and need to secure a loan of 5 lakhs. How can I apply for a Mudra loan or another loan?
Questioned by Shrihari Wandkar, Karnataka
All the major financiers are giving adequate loans for starting new ventures, development, procurement of machinery etc. If you are businessman and willing to start a business of your own, then you can apply for SME loans. One must have proper project plan or business plan in paper so that no bottlenecks arise at the time of getting a loan for business. Loans are available in Mudra, namely Kishor wherein loans are from Rs. 50,001 to Rs. 5,00,000 (For buying equipment/machinery, raw materials, business expansion for existing enterprises). Loans under the CGTMSE schemes are backed without any external collateral or third party guarantee. The MSME loan sanctioned by the Member Lending Institution (MLI) is backed by the scheme which provides the guarantee cover for a large portion of the loan amount. Kindly check with the nearest financial institutions for getting further details. Visit your nearest public-sector bank / NBFC for opting suitable loan and scheme as per your requirements. You can also consider "Ashwas Dinam Gold Loan" and “Restart India Pradhan Gold Loan” provided by Muthoot Fincorp Ltd (MFL) for immediate funding.
We are running pre-primary and primary school since last 5 years in semi urban area of Karnataka state. We are looking for a loan or fund support up to 1 Cr for establishing new school building, infrastructure and other key elements. Our school has a good financial track record. Please let us know how to avail the loan?
Questioned by Basavaraj, Karnataka
Nationalised banks, Private / scheduled banks and Non-Banking Financial Institutions are favourable for lending to establish a pre-primary and primary school. Banks/NBFCs would typically provide loans to construct buildings, interior, furniture or equipment. Banks/NBFCs do not fund operational expenditure such as staff salary, maintenance, rental, utility bill, etc., Therefore, it is important that you draw out a cash flow statement for at least one year and systematise loan amount for investment in long-term assets (building, furniture, etc.), which can be funded by the Bank/NBFC. Any shortfall in operational expenditure have to be supported by other funds available with the promoters. State Bank of India (School Plus), Bank of Baroda (Baroda Vidyasthali Loan) and other banks provides special term loan schemes for existing schools in order to repair / renovate / add new buildings or purchase of electronics equipment, computers and laboratory equipment, books, manuals, furniture and other utility fixtures. To avail the loan, the first step is to decide whom you want to approach. The next step is to prepare the documents for completing the loan application. Thereafter file the loan application. Once application is submitted, you should prepare answers for the queries that could be asked by the bank/NBFC officials. Eligibility for Bank/NBFC Loan depends many factors including loan amount, valuation of the property, and clarity of other documentation.
I am working on a project to convert regular fans into BLDC fans for our area, mostly low income families. We need to convince people to buy these comparatively expensive fans by arranging financial services like EMI to them. But it is difficult to find anyone who would give such a small loan (2000-6000 INR). Is there a solution to that.
Questioned by Salim Javed, West Bengal
As your requirement is for extending the finance support of BLDC fan, catering to the low income based group, suggest you may approach any Micro Finance Institution in your area and understand if they would be interested to market your products to their customers as MFI’s will be able to help you with a wide reach to customers and help with a better market penetration. However before you approach them certain details have to be in place which is primary for the business roll out - like a detailed project report about the product you are marketing, market feasibility and detailed product information. It is also recommended to have an ISO certification of the product which is important and essential when you plan to go on a large scale.Alternatively, a consumer durable loan is a finance option for purchase of household items like washing machines, refrigerators, furniture, clothes. This consumer durable loan is available with Bajaj Finserv to fund small purchases, and can be paid back in flexible tenures. You can avail them easily on zero or low interest rates and get financing for up to 100% of your purchases.https://bit.ly/3maLaGi
I wanted to know how to create budget and cash flow.
Questioned by Abinash Behera, Odisha
Using a realistic budget to forecast your spending for the year can help with a good long term financial planning. The following steps will help you in creating a cash flow and budget for your business:-1. Plan Revenue: This will be based on the market price for the product and the demand you expect to meet of your product. Multiply units to be sold by the expected sale price.2. Projecting the collections – In case you offer credit terms, ensure that you make collections so that your cash flow is not affected. For instance, if your payments are monthly, ensure you have projected collections to meet monthly payments.3. Investment: Set aside funds for investment or expansion of business. Always provision some cash for this purpose every year.4. Expenses and cash outflows – Manage expenses prudently. Also, keep a check on the type of costs. Try and use fixed assets efficiently so your costs can reduce. Also try making purchases in bulk to avail discounts. Costs to be considered are employee payments, rent, electricity, repairs, legal costs etc.5. Payment to Creditors: Ensure that you pay your creditors on time. If you make delays, it will reflect poorly on your business and you could end up getting poor terms from your creditors. Some creditors also reward prompt payments, so try to avail of these. Further, delay in payment to banks will have serious consequences on credit worthiness.These are the items you need to incorporate in your budget. In a gist, get started with cash inflow (revenue and collections), reduce your costs (investment and expenses and payment to creditors). The net cashflow is available for owners to re-invest in business. Keep the above points in mind when preparing a budget.
If the Covid-19 virus is not defeated in the near future, we have to fight against it and also ensure that the poor and the non-salaried lower middle class is not affected. How can we ensure the livelihood of this segment who holds a majority of Indian population and economy?
Questioned by Binesh kumar.k, Kerala
The pandemic is being a bane for most of the industries and many people have lost their jobs. However, this is the time to adapt to the a normal and look for alternative ways for survival. This is a good opportunity for the middle class people to establish their own low investment businesses. Operating a home-based business venture, whether full-time or part time can be considered as an option for income. They can market and sell their products and services online and and through local contacts as well. The small businesses like making of masks, surgical gowns, disposable gloves, hand sanitizers, soaps, candles, jewellery, home cooked food, tissues, stitching unit etc. can be considered. This opportunity can also be used to start a freelance career. Launching online consultancy business, online teaching classes, music classes, cooking/baking classes etc. can be counted as choices. If financial support is required, government is offering loans for small scale industries and start-ups. The MSME schemes as Collateral-free loan, Credit Guarantee Fund Scheme for Micro and Small Enterprises (CGTMSE), MUDRA Loans, SIDBI loans etc. can be availed if the criteria are met.
What are the options available to start a home business? Which type / sector of business can be operated remotely? I have an engineering background and experience in running a restaurant. Please advise
Questioned by Garima, Gujarat
Any kind of virtual business can be run from home. However, if your restaurant or shop is open to customers, then it's difficult to set this up at home. You could consider setting up a cloud kitchen at home to provide takeaways or to conduct online workshops. Since you have an engineering background you could also provide online consulting in the area of your expertise.
I am planning to open a new shop and I am short of capital required for starting it. How should I go about fulfilling the short term capital requirement for my business?
Questioned by Shubham Kumar, Delhi
Central government has come up with the 'Atmanirbhar Bharat' - special economic and comprehensive packages for various sections including the MSMEs. Banks and NBFCs provide similar products that suit small businesses. They offer a wide range of products and services for individuals. MUDRA loans can be considered for raising capital for your shop, which will be available through Banks/NBFCs/MFIs. Non-Corporate Small Business Segment (NCSB) comprising of proprietorship / partnership firms running as small manufacturing units, service sector units, shopkeepers and others, in rural and urban areas are eligible for assistance from MUDRA. Loans are categorised into Shishu, Kishor and Tarun. Loans beyond 5 lakh and up to 10 lakh comes under the 'Tarun' category. Generally, loans upto Rs.10 lakh issued by banks under Micro Small Enterprises are given without collaterals. The terms and conditions of the lending agency may have to be followed for availing loans. Government Programs that offer capital are an excellent way to source funding for your business. You may visit your nearest bank / NBFC for opting suitable loan scheme and understanding the terms and conditions end to end in line with your requirement and eligibility criteria. You can also consider "Ashwas Dinam Gold Loan" and "Restart India Pradhan Gold Loan" provided by Muthoot Fincorp Ltd (MFL) for immediate funding. https://bit.ly/MuthootFincorpRIPL https://bit.ly/MuthootFincorpADGL
I am running a firm since 2 years as a sole proprietor which deals in the field of dental medical equipments, materials and instrument supplies. Currently I am in need of a business loan, I have GST number but I don't have CC Account in bank .I usually make transactions from my personal savings account. So kindly guide me as soon as possible if there are any alternatives so I can get loan to grow my business once again otherwise I will have to shut down. My loan required amount is minimum 1 lakh presently.
Questioned by Kumar Abhishek, Bihar
All financial institutions may not provide business loan without a CC account. However, you can check with your nearest financial institution to understand if it is mandatory to have a CC account to avail a business loan. Mudra loan is a business loan given by the Government of India to Small and Medium enterprise. You can avail business loan of 10 lakhs with longer duration without collateral if the criteria are met. Emergency Credit Line Guarantee Scheme (ECLGS) is another loan option. Central government has come up with the ‘Atmanirbhar Bharat’ - special economic and comprehensive packages for various sections including the MSMEs. Banks and NBFCs will also provide similar products that suits small businesses. They offer a wide range of products and services for individuals. The specific services offered vary widely between different types of financial institutions. The SIDBI Make in India Soft Loan Fund for Micro Small and Medium Enterprises (SMILE) can also be considered. http://bit.ly/RISIDBI
We are facing problems with the back log of inward payments, same time we have the obligation surrounding us for payment to our suppliers as well the repayment of EMIs etc. We are looking at bringing investors into our organisation, but not sure about it. Ultimate aim is to get funding; financing. We have a lot of ideas in the line of apparel fashion industry, we need assistance and guidance for revamping our organisation.
Questioned by nithya a, Tamil Nadu
When your company has a backlog of inward payments, it can impact the company's future earnings. Delays in collection can complicate accounts payable, payroll, potential acquisitions and other issues related to liquidity. Well defined credit management policy makes accounts receivable easier, and strategic credit guidelines also ensure you issue credit only to worthy customers. Various financial institutions are funding for business at this time of the COVID-19 pandemic. MUDRA loan is available through Banks/NBFCs/MFIs. Generally, loans up to Rs.10 lakh issued by banks under Micro Small Enterprises are given without collaterals. You can visit your nearest public-sector bank / NBFC for opting suitable loan and scheme as per your requirements. You can also consider "Ashwas Dinam Gold Loan" and “Restart India Pradhan Gold Loan” provided by Muthoot Fincorp Ltd (MFL) for immediate funding. https://bit.ly/MuthootFincorpADGL. https://bit.ly/MuthootFincorpRIPL. In order to revamp your organisation, develop a robust business plan that’s designed for growth. You will be the entrepreneur who can restart your very own clothing/apparel line. When it comes to clothing, you really do need to have a genuine passion and imaginative for what you are producing. That will enable you to stand out and enjoy real success. Having a creative eye is essential. You need to find the balance between your quality standards, cost of production, and making money. Be passionate, know your brand, and keep your set up costs low.
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