You have thought about opening your own small scale industry for a long
time. You had finished your management studies, and now you are ready to start
your own enterprise.
The onus to decide whether to opt for a new small business, or go for a medium scale industry lies on you.
You had made all your plans, sat down and completed your investment details. But where’s the money.
How should you get funds for your small scale industry? This is the first tough question that crops in everybody’s mind before anyone decides to start a venture.
What are the places that give you funds? What are the minimum criteria you need to follow to get a loan from the bank, or do you have other sources that give you money. Do you have a certain small business strategy?
Before you step on the issue of loans, you need to know what exactly a small scale industry is.
The reserve bank of India had laid down its own guidelines about small scale industry. It says that any undertaking in which the investment in plants and machinery does not exceed rupees one crore except for few items, falls under small scale industry.
What are those exceptions in which the limit for a small scale industry has been enhanced to rupees 5 Crores. The related items are hosiery, hand tools, drugs, stationary and sport goods.
After you do know the meaning of small scale industry, you are now prepared to try out places where you would receive funds for your business.
Here are the few ideal places where funds are available for enthusiastic small business entrepreneurs.
• The small industries development bank of India (SIDBI) provides credit to the small scale industry. They are one of the biggest lenders to the small scale industrial units. You need to make a comprehensive plan and submit to these bankers, they appraise your project and provide you the loan if they find your project acceptable.
• National small Industries Corporation is also into lending, they also finance large projects.
• State level financial institutions are one of those organizations that provide funds within the state.
• Commercial banks and cooperative banks also provide loans to the small scale industry. Though, they may not provide substantial funds to the borrower. More often than not, a lower limit is assigned to the fund seeker. The reason is mainly because there are many fund seekers from a commercial or a cooperative bank. These banks run out of lending limits quite soon. If you try a lower cash amount, then you are advised to approach a commercial bank, or a cooperative bank.
Get your project done from a professional management company, especially if you look for loans in excess of 1 crore. A professional would make your loan procurement much easier.
The onus to decide whether to opt for a new small business, or go for a medium scale industry lies on you.
You had made all your plans, sat down and completed your investment details. But where’s the money.
How should you get funds for your small scale industry? This is the first tough question that crops in everybody’s mind before anyone decides to start a venture.
What are the places that give you funds? What are the minimum criteria you need to follow to get a loan from the bank, or do you have other sources that give you money. Do you have a certain small business strategy?
Before you step on the issue of loans, you need to know what exactly a small scale industry is.
The reserve bank of India had laid down its own guidelines about small scale industry. It says that any undertaking in which the investment in plants and machinery does not exceed rupees one crore except for few items, falls under small scale industry.
What are those exceptions in which the limit for a small scale industry has been enhanced to rupees 5 Crores. The related items are hosiery, hand tools, drugs, stationary and sport goods.
After you do know the meaning of small scale industry, you are now prepared to try out places where you would receive funds for your business.
Here are the few ideal places where funds are available for enthusiastic small business entrepreneurs.
• The small industries development bank of India (SIDBI) provides credit to the small scale industry. They are one of the biggest lenders to the small scale industrial units. You need to make a comprehensive plan and submit to these bankers, they appraise your project and provide you the loan if they find your project acceptable.
• National small Industries Corporation is also into lending, they also finance large projects.
• State level financial institutions are one of those organizations that provide funds within the state.
• Commercial banks and cooperative banks also provide loans to the small scale industry. Though, they may not provide substantial funds to the borrower. More often than not, a lower limit is assigned to the fund seeker. The reason is mainly because there are many fund seekers from a commercial or a cooperative bank. These banks run out of lending limits quite soon. If you try a lower cash amount, then you are advised to approach a commercial bank, or a cooperative bank.
Get your project done from a professional management company, especially if you look for loans in excess of 1 crore. A professional would make your loan procurement much easier.
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