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The Best Financing Options for Small Businesses

By Aakash Jain - Feb 13,2022
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One thing that keeps the business running is funds. Money is very important for the business to sustain. It helps to build infrastructure, buy machinery, purchase raw materials, and upgrade the infrastructure at regular intervals. Budding entrepreneurs have a whole lot of aspirations in their hearts to create a niche for themselves in the business realm, but sometimes the dreams come crashing down due to a shortage of funds and they do not get sufficient financing.

Many businesses struggle to gather funds to function. To help such businesses, there are various loan schemes offered by financial institutions i.e. Banks and NBFCs, so that they can broaden their horizons.

Here are some business loan schemes to aid small businesses in India.

MSME (Micro, Small, and Medium Enterprises)

In recent times, the economy of India has taken significant strides towards progress. This has given rise to a large number of Micro, Small, and Medium Enterprises. These enterprises constitute a significant portion of the Indian business industry and contribute greatly to the economy despite their size. Most of the financial institutions today provide MSMEs loans. The businesses can avail these loans if they fall under the MSME category. An MSME loan can be used for the all above-mentioned activities like buying machinery, raw materials, inventory or upgrading the infrastructure. There are a set of eligibility criteria that you need to fulfil to be eligible for this business loan. To know more, visit Finserv MARKETS.

Pradhan Mantri Mudra Yojana 

The Pradhan Mantri Mudra Yojana or PMMY was the initiative introduced by the Indian Government. MUDRA (Micro Units Development and Refinance Agency) loans were introduced in this scheme. This scheme was introduced to provide funds to micro and small ventures in non-farming and non-corporate sectors as high as Rs. 10 Lakhs. Shishu Loan, Tarun Loan, Kishore loan are three loan types under PMMY. This provides a great boost to the industries. The major reason for it is that it is essentially a working capital loan, that helps these enterprises manage the finances required for daily operations. This is applicable to all the new and existing manufacturing and trading enterprises. They can avail this working capital loan online as well.

Credit Guarantee Scheme (CGS)

Credit Guarantee Scheme (CGS) was the loan scheme launched by the Government of India. The main aim of this scheme is to enhance the credit delivery system in the MSME sector. This loan is also a working capital loan, which can be used for day-to-day operations. Today, various banks and NBFC offer loans under the Credit Guarantee Scheme. 

Business Loans on Finserv MARKETS

Small businesses can avail business loans available on Finserv MARKETS. Finserv MARKETS is a digital marketplace, where one can find a variety of financial products that suit their requirements. Business Loans of up to Rs. 75 Lakhs can be availed on Finserv MARKETS. Also, there are multiple benefits of availing this loan. The first and foremost benefit is that the loan application process is completely online. There is no requirement for collateral. The documents required are quite minimal. In addition, there are no hidden charges and complete transparency is ensured. The loan is approved instantly, i.e. in just 2 minutes. Also, the repayment tenure is flexible, ranging from 12-60 months.

So hurry! Visit Finserv MARKETS today.

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Bajaj Finserv Direct Limited ("BFDL") is primarily engaged in distribution of financial products and services through its digital platform (“Bajaj Finserv MARKETS”) and inter alia renders services of customer acquisition, providing preliminary credit support activities, fulfilment services and post-acquisition customer services to Banks, NBFCs, HFCs. BFDL is also a registered Corporate Agent (Composite) under valid IRDAI registration number: CA0551 valid till 10-Apr-2024 for solicitation and servicing of Insurance Products. Registered Office: Bajaj Auto Limited Complex, Mumbai – Pune Road, Akurdi, Pune – 411 035 CIN: U65923PN2014PLC150522