A survey conducted by the All India Manufacturers’ Association(AIMO) has revealed that 35% of micro small and medium businesses as well as 37% of self-employed individuals have been affected by the pandemic with no hope of the recovery in the near future. About 32% of the respondents in the MSME sector believed that it would take at least 6 months for them to bounce back to normal, while 12% felt that they could recover in just 3 months. The pandemic has further exacerbated the problems of those engaged in small scale industries who were already struggling with the economic slowdown.
Many small businesses have been forced to completely shut or scale down operations. There is no certainty over receiving orders in the future that could give their struggling business a boost. Apart from disbursing unsecured loans to the tune of Rs. 3 lakh crores, the government also announced a fresh economic stimulus of Rs. 20,000 crore to provide some relief to the MSME sector which has been hit hard due to the lockdown.
The government’s initiative is a key step in providing financial support and inject liquidity into the small, medium and micro sector. If you own a small business and require finance, you can also opt for a small scale industry loan such as business loan available on Finserv MARKETS. It comes with a high loan limit, flexible tenures and instant approval to help you to expand your business, fund your daily expenses as well as purchase new equipment to ramp up production if you are a small business owner.
Before applying for a small scale industries loan scheme, it is important to understand how they are classified. Units that manufacture, produce or provide product services on a micro or small scale are referred to as small scale industries. As per the revised criteria approved by the government, a business entity with an investment equal to or less than Rs. 10 crore and a turnover not more than Rs. 50 crore will fall under the category of a small scale industry.
Unlike earlier, no distinction will be made between manufacturing and service sector units. This move is aimed at giving a fillip to the MSME sector, enabling enterprises to increase their ability to export more, employing more people, thus advancing the mission of a self-reliant India.
Here are a few common small scale industries. These might be involved either in producing finished goods fit for consumption or processed further by the industry such as :
Power looms, food processing units, repair shops, maintenance industries as well as those making machine parts for bigger multinationals also qualify for a small scale industry loan among others.
If you are a small business owner or want to start one, you can easily get registered as a small scale industry. No processing charges apply as it is completely free of cost. The process is facilitated by the Ministry of Micro, Small and Medium Enterprises(MSMEs) and can help you easily apply for the small scale industries (SSI) loan scheme, subsidy or any other incentive offered by the government. Login to www.udyogaadhar.gov.in, fill the registration form available online. Here is how to go about the registration process step by step.
Getting your small scale enterprise registered is not mandatory. It is a voluntary decision that each business owner running a small business has the option of. However, registering your small business comes with a plethora of advantages, some of which are outlined below:
Here are a few things that give you an advantage over others as someone running a small business:
Whether you are striving to get your company running, want to upgrade the machinery or even start a new business,you have options to choose from. It is not just the small scale industries loan scheme from the Government that can come to your rescue and fulfill your dreams. Avail a Bajaj Finserv Business Loan of up to Rs. 30 Lakhs available on Finserv MARKETS. These loans are instant and collateral free, with flexible repayment tenures ranging from 12 months to 5 years.
To be eligible, you should be between 25 to 55 years and running a business for at least 3 years. A credit score of 750 and above and duly filled income tax returns for at least the previous year is mandatory. Make sure there is no loan default in your name or in the name of the company. This can get your Bajaj Finserv Business loan approved within 3 minutes with the loan amount being transferred to your bank account within 24 hours.
Not only this, you can also enjoy value-added services to keep you on track with your business goals. These include personalised insurance plans to protect your business against anticipated risks. A Financial Health Check Report(FHCR) to help you manage your enterprise effectively and take it on the path of growth is also made accessible. Let your business dreams take flight and apply for the Bajaj Finserv Business loan available on Finserv MARKETS today!