Micro, small and medium enterprises, or as they are popularly known as, MSME, are an important part of the economic fabric of any country. Especially in India, there has been a rise in many such enterprises, no matter what their scale is.
To encourage MSME, a lot of private and government initiatives are becoming popular to give fast approved loans to any entrepreneur who has a good business plan. If you are an MSME entrepreneur looking for funds for your company, here are the following options for you to raise capital.
- Bank loans:
Banks can provide with cash loans to entrepreneurs based on some basic criteria. Many banks and financial institutions help businesses and start-ups raise capital through a business loan. It is advisable for MSME business owners to avail for business loans instead of personal loans to fund their endeavours.
You can apply for business loan if you meet the eligibility criteria set by the lender institution. Once you make sure that you meet all the requirements and submit the documents correctly, the amount will be transferred to your account on approval. Make sure you have a realistic repayment plan ready.
- Loan apps:
These days you can apply loan online through various portals available online. There are many apps on Google Play and App Store that help start-ups and MSME to get loans quickly after going through a KYC procedure and meeting the eligibility requirements.
If you use a cash loan app online to fund your business, make sure that you do your research and check the credibility of the app, compare interest rates and read the payback terms carefully.
- Government schemes:
Government has also been coming up with schemes to tap the potential of small and medium scale enterprises. The government of India passed the Micro, Small And Medium Enterprises Development Act in 2006 for the promotion and development of MSME sector.
Schemes like Pradhan Mantri Mudra Yojana (PMMY), MSME Champions, Start-up India initiative among others have been launched for instant loan access with a comparatively relaxed eligibility criteria for Indians to become the next generation of business entrepreneurs.
- Private investor:
Every business owner knows how difficult it is to get access to credit in the initial stages of business. Sometimes, a private investor can be just the right source for your debt loans need.
To approach a private investor, you might need to build networks in professional communities and have your solid business plan ready. The loan amount, interest rates and repayment as well as collateral terms can differ significantly in case of private investors, as compared to other financial institutions. You must choose wisely.
If you have a vision and an irresistible business plan with all forecasts for growth and profits, your company will be able to create creditline for all its needs. MSME is the future driver of the Indian economy and should be supported by both government and private entities.
Whether you avail a loan through the best online loan app, a government scheme, a bank or a loan through a private investor, make sure you optimize the fund in the most profitable way and expand your business to new heights.