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How To Get A Startup Business Loan In India?
How To Get A Startup Business Loan
in India?

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A startup company loan in India is intended to help young businesses overcome financial challenges. Startups and micro industries require money to expand and maintain their operations.

What are the eligibility criteria for startup business loans in India?

A startup company loan from a bank or financial institution might help you raise funds or expand your present business. The candidate should meet the lender’s requirements. A few prerequisites include the applicant’s profile and documentation. Here are a few points:

1. Applicant Profile

The applicant’s personal background will be verified. If the applicants have a criminal past, they will be ineligible or the process would be delayed. The applicant’s age should be between 21 and 65.

2. Business Background

The aims and objectives of the firm should be clearly defined. The company should be less than five years old and reregistered as a private or partnership.

3. Business Plan/Project Report

A detailed and elaborate business plan should be submitted. It will give the lender a detailed overview of the startup idea. Get a perfect business plan/project report with Finaxis.

4. Financial Statements

Submit all financial projections, including balance sheets, profit and loss statements, and cash flow statements.

5. Legal Documents:

The applicant must supply all legal documentation to show the legality of the business.

6. Collateral:

Some government loans need no collateral and allow the applicant to obtain a larger loan amount.

What documents are necessary for obtaining a Startup Business Loan in India?
- Identity Proof: Passport, PAN card, Aadhaar card, driver’s license, or voter ID.
- Address proof: electricity bills, telephone bills, passport, Aadhaar card.
- Income Statement – Proof of stable income must be presented.
- Bank Statements – Submit the last six months’ bank statement.
- Photos: Two passport-sized copies.
- Financial statements audited by a CA for the past two consecutive years.
- IT returns for the last two straight years.
What are the government loans for start-up businesses in India?

If the applicant meets all of the standards listed above, they must identify the relevant plan offered by the government of India for entrepreneurs. Some of the popular initiatives sponsored by the government of India for startups and MSMEs are listed below:

1. Credit Facilitation Scheme

This program is managed by the National Small Industries Corporation (NSIC). They aim to address the financing needs of MSME units. The NSIC has partnered with numerous banks to give loans to MSME firms. The repayment period will range from 5 to 7 years, with the option of extending it to 11 years.

2. Pradhan Mantri Mudra Yojana (PMMY)

The Micro Units Development and Refinance Agency (MUDRA) established PMMY in 2015. It intends to provide loans to all types of industrial, commercial, and service-related enterprises. MUDRA’s loan categories include Shishu, Kishor, and Tarun. The loan amounts range from Rs.50,000 to Rs.10 lakh.

3. Credit Guarantee Scheme

This applies to both new and current MSMEs engaged in service or manufacturing operations, with the exception of educational institutions, agriculture, retail trade, Self Help Groups (SHGs), and others. You can borrow up to Rs. 200 lakh using this arrangement.

4. Startup India

This initiative provides loans to businesses that manufacture, trade, or provide services. Loans of between Rs.10 lakh and Rs.1 crore can be obtained. You can return the loans obtained through this arrangement within seven years.

5. Sustainable Finance Scheme

This program provides loans to businesses that deal with green energy, renewable energy, technical hardware, and nonrenewable energy. The government established this program to provide sustainable development projects.

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August 2, 2024
Swami Vivekananda Assam Youth Empowerment
Swami Vivekananda Assam Youth
Empowerment

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The government of Assam introduced the Swami Vivekananda Assam Youth Empowerment (SVAYEM) Yojana in 2017. The SVAYEM plan gives financial assistance to young people in Assam to pursue revenue-generating ventures in the commerce, manufacturing, and service sectors. However, SVAYEM’s primary goal is to create work opportunities for young people through the formation of new businesses and the expansion of current ones.

Highlights of the SVAYEM scheme:
- The Swami Vivekananda Assam Youth Empowerment Scheme would increase the income of Assam’s traditional craftspeople by offering financial credits to qualified candidates.
- SVAYEM provides financial assistance to micro, small, and medium-sized businesses in Assam. However, the MSME should work in the manufacturing, commerce, and service sectors.
- The project aims to create jobs for qualified youngsters in rural and urban areas of Assam by establishing new companies and expanding current ones.
- The SVAYEM initiative is open to businesses in manufacturing, trading, processing, rural transportation services like as autorickshaws and e-rickshaws, the service sector, tourism, shops, repair centers, handicrafts, and cottage industries.
- Approximately 1 lakh adolescents in Assam will receive appropriate financial assistance to start income-generating firms.
What are the eligibility requirements for the SVAYEM scheme?
- The applicant’s age must be at least 18 years.
- To profit from this SVAYEM plan, the candidate must be unemployed.
- Applicants must be residents of Assam.
- Every candidate must have the necessary skills, experience, and knowledge to carry out the income-generating activities under the scheme.
- The applicant’s educational qualification should be at least above class VII.
- Applicants who have already completed Skill Development Training will be given preference.
- The applicant must not be a defaulter at any bank in the country.
What are the documents required for the SVAYEM scheme?
- SVAYAM Application Form.
- Required documents include a project report/business plan and proof of the applicant’s identity.
- Certificate of Class 7th qualification.
- Applicant’s proof of age.
- Skill Development/Trainee certificate, if relevant
- Provide a copy of your business license and proof of residence.
- Copy of the business registration certificate.
- Ownership and identification documents
- If you have any experience, please provide a certificate.
Conclusion

The Svayem Scheme has the ability to significantly boost youth entrepreneurship, stimulate socioeconomic development, and cultivate an atmosphere that is favorable to innovation and expansion in Assam. Through the provision of financial aid, education, career guidance, and connections to the business community, the program enables young people to realize their full potential, support the state’s economy, and create prosperous futures for themselves and their communities.

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August 2, 2024
How To Prepare A CMA Report For Bank Loan
How To Prepare A CMA Report For
Bank Loan

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The CMA report is also known as the Credit Monitoring Arrangement report. It is a report that shows a company’s predicted and historical financial performance in order to receive a bank loan. A CMA report includes all of the necessary financial statistics and metrics for a bank loan. As a result, lenders can obtain information on a company’s financial health. Part of the essential documentation for businesses is the compilation of historical performance as well as future projections in a precise manner that allows invested stakeholders to rapidly assess the financial health of the venture.

Finaxis will assist you with the CMA report for bank loan preparation very easy using our project reports. You don’t need any finance or accounting skills to prepare a CMA report for a bank loan using Finaxis. We will execute the remaining complex computations with great precision to assist you.

What statements appear in the CMA project report for bank loans?
- Operating Statement
This is the borrower’s business plan, which includes current sales, profit before and after taxes, sales predictions, direct and indirect expenses, and profit position for the next three to five years.
- Analysis of Balance Sheet
This statement includes an examination of the current and predicted fiscal years. It also contributes to a comprehensive review of the borrower’s current and non-current assets, current and non-current liabilities, and cash and bank position. This statement also provides the borrower’s net worth position for the next predicted years.
- Comparative statement of current assets and liabilities
This analysis helps to determine the borrower’s ability to meet working capital obligations. It will also be useful in determining the actual working capital cycle for the planned period.
- Calculate ABF/MPBF
This includes a computation to determine the Asset Based Finance and Maximum Permissible Bank Finance. It also reveals the borrower’s ability to borrow money.
- Cashflow statement
The major goal of this statement is to capture the fund’s movement over the stated time period.
- Ratios
This demonstrates the financial strength of the unit at various criteria.

If you require an expert to write the CMA project report for bank loans, our team can do so; just fill out the form so that our agent can contact you and speak more.

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August 2, 2024
How To Write A Business Plan
How To Write A
Business Plan

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If you are among the many people considering launching a small business. Then, having a business strategy should be one of the first things on your to-do list. It makes no difference if you start a small or large firm. A business plan is thought of as a blueprint for a successful small firm. The most difficult aspect of the company process is writing a business plan. A business strategy develops from a business idea. Once you have a general understanding of the firm, its industry trends, and development potential, the process of producing a business plan should be straightforward.

How can you build a business plan to launch your own new company?

In this post, we’ll look at some of the key topics to consider while developing a business strategy.

Typically, a standard business strategy includes the following:
- Executive Summary
- Company description:
- Market Research and Analysis
- Description of products and services
- Operational Strategy
- Marketing and Sales Strategy
  Financials
Executive Summary

This is the most crucial and critical section of your plan, and it will provide a brief overview of the content of the complete business plan. If you intend to present your business plan to venture capitalists, banks, or possible investors, be sure that your executive summary piques their interest and encourages them to go beyond the first page. The executive summary is typically distributed to potential financial backers, board members, and other interested parties for consideration. The executive summary should be written so that the responsible person can read it more easily.

What points should be mentioned in an executive summary?
- Your company’s vision and mission statements
- Your product or service, as well as the challenges that your organization has solved
- A brief overview of your target market
- Your purpose for drafting a business plan
- Your company’s size, scale, profitability, and sales predictions
If you are an entrepreneur , you may need to revise the executive summary numerous times at the end of the business plan development.

Company description

The company description is merely a summary of your organization. This portion of your proposal should contain:
- The official name of your company
- Company location
- Business structure
- Ownership or management
- Company background
- Company description
- The mission statement of your company
- Product and market information
- Goals and objectives of your company
Market Research and Analysis

Use graphs and charts to illustrate your detailed market analysis. You must address both current and future trends, as well as how your firm intends to profit on them. Also, conduct a competitive analysis and try to categorize your competition. Once this is completed, identify your competitors’ products, tactics, advantages, and disadvantages, as well as methods and plans for improving your company’s performance.

This stage also allows for the completion of a SWOT analysis, which comprises strengths, weaknesses, opportunities, and threats.

Description of products and services

Businesses can take many different forms and provide either products, services, or a combination of both. Give a clear description of the products or services available through your company.

Operational Strategy

This portion of your business plan contains a detailed explanation of your company’s goals, objectives, methods, and schedule. This section will include factors such as cash flow forecasting, variance reports, weekly position reports, management settings, executive reviews, team operating plans, organizational structure, delegation of authority, hiring procedures, employee compensation, profit-based incentive system, performance evaluation, and so on.

Marketing and Sales Strategy

Sales planning is essential for sales success. Return on Time Invested (ROTI) should be the primary criteria that every salesperson considers when reviewing their account base.

When developing your marketing and sales plan, you should be aware of four factors:
- Customers
- Market
- Sales performance
- Target objectives
Financials

The finance portion is brief, focusing solely on your break-even point, financial plans, and so on. It will be merely one page long. A finance section that is vaguely developed honestly leaves a bad impression on the reader. To avoid this, build a well-crafted financial strategy that takes into account the following aspects.

Balance sheet, cash flow statement, tax implications, income statement, startup costs, operations costs, cash inflow, and a regular evaluation of your budget vs actual expenses.

So, the final question is: Do you need a business plan?

Well, the answer is Yes, and the following arguments demonstrate its importance:

We at Finaxis will assist you with this. Our staff will assist you in developing a great business strategy in ten minutes. That, too, is in your language.

Conclusion

A strong business plan is essential for success since it offers a defined course of action and aids in obtaining the required funding. You may develop a strong plan that paves the way for the expansion and success of your company by emphasizing in-depth analysis, precision, and grounded forecasts.

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August 2, 2024
MSME Loan Schemes Available In Sikkim
MSME Loan Schemes
Available in Sikkim

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Sikkim, located in the foothills of the Himalayas, is well-known for its picturesque beauty and tourism industry. However, the state government is also encouraging the development of Micro, Small, and Medium Enterprises (MSMEs) in the state. The central and state governments of Sikkim have launched different MSME loan schemes to give financial support and promote entrepreneurship. These initiatives meet the different needs of MSMEs, which range from start-ups to established enterprises wishing to expand.

In this article, we will look at the various financing schemes accessible to MSMEs in Sikkim. We will look at the qualifying requirements, perks, and features of each scheme. In addition, we will supply separate tables for each scheme that outline relevant details such as gender, qualification, age group, social category, industrial profile, rural/urban, and government affiliation. With this knowledge, MSMEs in Sikkim may make informed judgments and select the best financing scheme for their business requirements.

Youth Skilled Startup Scheme Sikkim

Taking the spirit of Atmanirbhar Bharat further, the Sikkim government has created the Youth Skilled Startup Scheme to encourage equitable entrepreneurial opportunities among Sikkim’s educated unemployed population. This is one of the greatest MSME loans available if you are from Sikkim. The initiative offers back-end bank loan subsidies of 50% for BPL and 35% for others on financially sound bankable projects. Here are some of its features:
- Age range: 18-40 Years
- Loan Duration Approximately 7 years
- The interest rates The bank’s lowest applicable rate that does not exceed base rate (MCLR) + 3% + tenor premium.
- Education Qualifications Residence: Sikkim Minimum of a fifth grade pass
Credit-Linked Capital Subsidy Scheme (CLCSS).

The Government of India started the Credit Linked Capital Subsidy Scheme in October 2000. This plan gives MSMEs the funding they need to upgrade their present technologies. This strategy enables businesses to improve their existing plant and machinery while increasing profits. This policy has no maximum loan restriction, however the subsidy is based solely on the loan amount sanctioned for P&M purchases. The primary features are as follows:
- Loan amount: no upper limit.
- Subsidy: 15% of loan amount.
- Annual guarantee fee: 0.75-1.0%.
- Loan tenure: Flexible tenure based on the repayment capacity
Pradhan Mantri Mudra Yojana (PMMY).

The Pradhan Mantri Mudra Yojana (PMMY) is a major central government plan that debuted in 2015. It makes microloans to non-corporate, non-farm micro, and small businesses in both rural and urban locations.

PMMY provides loans in three categories, based on the stage of business growth and finance requirements:
- Shishu Mudra: Up to Rs 50,000.
- Kishore Mudra: Rs. 50,001-Rs. 5 lakh
- Tarun Mudra: Rs 5 lakh to Rs 10 lakh.
MUDRA loans are available through a variety of financial organizations, including public and private sector banks, regional rural banks, small finance banks, microfinance institutions, and non-banking financial companies.

PMMY, unlike other loan schemes, does not have age, gender, tenure, or interest rate requirements. All of these elements can vary depending on the loan type and the lending institution’s policies.

Prime Minister’s Employment Generation Programme (PMEGP)

PMEGP is a credit-linked subsidy system operated by the Ministry of Micro, Small, and Medium Enterprises (MSME) that intends to provide job possibilities through the establishment of micro-enterprises. The primary beneficiaries of this initiative are women, traditional and potential craftspeople, and unemployed youngsters. Here are some of its primary features:
- Age: Minimum age of 18.
- Interest rates: vary between 11% and 12% based on the bank.
- Loan tenure: 3-7 years.
- Education qualification: VIII standard pass.
- Maximum loan amount: Rs. 1 Crore.
- Subsidy: 15% to 35%.
Credit Guarantee Fund Trust for Micro- and Small Businesses (CGTMSE).

CGTMSE is a joint initiative launched in 2000 by the Ministry of Micro, Small and Medium Enterprises (MSME), the Government of India, and the Small Industries Development Bank of India (SIDBI). It encourages financial institutions to provide collateral-free credit schemes to micro and small enterprises. In case of any default, the bank can file a claim with CGTMSE. The following are some of its main features:
- Loan amount: Up to 5 crores
- No collateral required.
- Loan tenure is 5-10 years.
- Annual Guarantee fee: 0.37%-1.35%.
- Minimum age: 18
Stand Up India

Stand-up India is a central government project that began in 2016. It offers bank loans to women and Scheduled Castes (SCs) and Scheduled Tribes (STs) to start their own businesses. Existing firms are ineligible for loans under this scheme because they are intended for new businesses only. These loans are supplied by a variety of banks, including scheduled commercial banks, regional rural banks (RRBs), and small financing banks.

This initiative offers loans ranging from Rs 10 lakhs to Rs 1 crore. Interest rates and tenure vary depending on the type of the firm, as well as other considerations such as the lender’s credit policies.

SIDBI Make in India Soft Loan Fund for Micro, Small, and Medium Enterprises (SMILE).

The national government introduced SMILE, a project to provide financial help to 25 identified sectors under the ‘Make in India’ initiative. This program supports the ‘Make in India’ movement among entrepreneurs. SMILE provides ample cash for both the start-up and expansion of established businesses. The following are some of its primary characteristics:
- Maximum loan tenure of 10 years.
- Loan amount ranges from Rs.10 to Rs.25 lakhs.
- Interest rates vary depending on corporate needs.
- Nature of loanTerm and quasi-equity loans.
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August 2, 2024
Audit And Types Of Audits
Audit And Types
Of Audits

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Audit and Types of Audits: An audit is a formal examination of an organization’s accounts by an outside agency to ensure that departments adhere to an established method for recording transactions.

Defining Audits:

A methodical review and evaluation of financial records, operational procedures, or compliance frameworks to guarantee accuracy, dependability, and conformity to rules and regulations is called an audit. In order to pinpoint the organization’s advantages, disadvantages, and potential areas for development, it entails a thorough examination of all transactions, policies, and procedures.

Importance of Audit
- It contributes to the discovery and prevention of errors and fraud.
- Maintains records and verifies books of accounts.
- Adds legitimacy to a set of financial statements.
- It aids in determining the credibility and veracity of financial statements.
Types of Auditing:

There are numerous forms of auditing, some of which are listed below:
- Internal Audit
- External Audit
- IRS tax Audit
- Financial Audit
- Operational Audit
- Payroll Audit
- Government Audit
- Management Audit
Conclusion:

Basically, audits are essential instruments for assessing how well a business is performing, making sure that regulations are followed, and reducing risks in a variety of areas. In an ever-changing business context, businesses can strengthen their governance frameworks, promote operational excellence, and foster stakeholder confidence by comprehending the nuances of various audit types and adopting developing audit approaches.

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August 2, 2024
How to Measure Small Business Performance?
How to Measure
Small Business Performance?

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As entrepreneurs, we understand how important it is to discover what works effectively in your business and what does not. In business, the only constant is change. To determine what is successful and what is not, you must regularly assess your company’s performance. As an entrepreneur, you must constantly assess your business’s performance.

Business is unpredictable, so you may expect ongoing change. So, how do you determine the success of a tiny business?

If you want to analyze business success, you must keep track of relevant business metrics, also known as key performance indicators, that demonstrate measurable value and progress toward the company’s goals.

How is performance measured?
To remain competitive, it is critical to regularly monitor and analyze your company’s goals and performance in light of the ever-changing market environment.

Set goals.

What are you hoping to accomplish? Your goals include acquiring new customers, improving customer happiness, and growing website traffic. Once you’ve determined what you want to measure, you can only measure what you have. Here are some examples of corporate objectives:
- generating leads
- Improving sales
- Enhanced client services
- Expanding the profit margin
- Improving manufacturing effectiveness
- Getting a bigger market share
Develop important performance indicators.

KPIs are benchmark ratios that provide insight into how your firm operates. Financial statements and income earned per employee are both instances. Using these performance indicators, you can analyze performance in relation to the goals you’ve set.

Businesses will define KPIs differently. As a result, it is critical to select KPIs that are relevant to your firm, can be measured, and give results that will assist you in meeting your objectives.

Define suitable metrics.

Business metrics are quantitative indicators used to track and evaluate the performance of a given business operation. Depending on your business and aims, you should concentrate on specific KPIs. These include web metrics, accounting and financial metrics, sales and marketing indicators. These measures keep customers, investors, business owners, and employees informed of a company’s performance.

Track and measure.

Concentrate on the data you believe is most important to monitor. Choose a few core business objectives, establish associated KPIs, and focus on monitoring and acquiring relevant data.

Measuring Business Performance

Financial Statements of a Company

Money is vital for running a business. Without it, your business will fail. It enables you to extend and grow your business. Your small firm can employ three basic financial statements: the income statement, balance sheet, and cash flow statement.

The income statement shows your company’s profits and losses and estimates its profitability over a specific time period. The balance sheet, which shows how much you owe and own, reflects your company’s financial health. Furthermore, the cash flow statement demonstrates that your organization has liquid cash. This is an extremely important step in measuring your company’s performance.

Focus on customer happiness.

Customer happiness is a key indication of small business performance. Customers that are dissatisfied with their purchases from your firm are unlikely to return. How is customer happiness determined? There are other approaches, including surveys and reviews. Customers aid us in developing new items. Please listen to their needs and learn how to address them.

The revenue growth rate

Revenue growth is defined as the rate at which a company’s income or sales increase. Begin by calculating your company’s total annual revenue to get the revenue growth rate. To get the growth rate, divide current income by incremental revenue from the previous year. You can now assess whether growth is speeding up or slowing down.

Accounts payable turnover

Accounts payable turnover measures how quickly your company pays for goods and services over a specific period. Knowing your supplier costs will help you determine whether you need to make any spending cuts.

Relative market share

You can use relative market share to discover how much of a given market your organization controls. Market share measures how well a company does in comparison to its competitors. Following the determination of your relative market share, you can strategically develop your product and service to maximize your company’s long-term profits.

Average number of new customers you get

Check to check if any of the customers making purchases are returning. Create a customer list with email addresses to keep track of them. This will make it easier for you to calculate the monthly or yearly increase in your consumer base.

You can assess your company’s ability to attract new customers by averaging your new customers on a regular basis.

Conduct performance reviews.

Attempt to do performance reviews twice a year. This illustrates how effectively they complete their tasks. Furthermore, performance reviews help employees understand their workload and identify areas for improvement.

The employee can then be assigned tasks to accomplish in order to increase workplace efficiency without adding additional employees to the payroll.

Monitoring the growth and evolution of any business necessitates continuous performance measurement. It comprises comparing a company’s actual performance to its desired outcomes. Consistently monitoring your company’s performance will protect it from organizational or financial challenges. As a result, businesses gain from reduced processing costs, increased output, and more successful missions.

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August 2, 2024
Loan Against Stock & Inventory
Loan Against
Stock Market

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Loan against Stock and Inventory

Inventory in any firm is an asset. The accounting phrase “inventory” refers to items or products that are available for sale, as well as raw materials. It can also refer to all of the goods, items, products, produce, stock, and materials that business owners keep in order to benefit from their sale.

What is Inventory Financing?

Inventory takes time to convert back to cash, therefore it locks up a significant amount of working capital in the form of stocks. A loan against unsold stocks and inventory allows a dealer to keep large amounts of inventory while also maintaining the necessary liquidity in working capital.

The acceptance of your loan against inventory in India is strongly dependent on the quality of inventory handling for a realistic assessment of your requirements. Inventory management is the major factor influencing a lender to meet the borrower’s credit needs.

The bank assesses the business inventory and makes a loan based on its value. The percentage specified and the interest rate offered will vary by bank and based on the volume of goods. In general, inventory acts as collateral for the loan, allowing a dealer to develop his business by purchasing inventory from retailers, traders, manufacturers, or distributors, resulting in a secured business loan.

Features of Inventory Financing
- You can apply for an asset-backed loan by presenting inventory as collateral.
- The loan amount relies on the percentage of the value of inventory established by the lender.
- The owner does not have to sell the products right away; it is a loan against them.
- Inventory is required as security for a Revolving Line of Credit or Secured Business Loan.
- The percentage and interest rate given will vary from lender to lender
- The turnaround time for stock or inventory conversion into cash is adjustable.
- Improves cash flow and liquidity by preserving stock assets.
- The loan amount against inventory typically ranges from 50% to 90% of its value.
- The inventory life is linked to the type of short-term credit and loan repayment.
- Preferred by small privately owned firms, SMEs, merchants, and distributors.
What are the advantages of a Loan Against Stock and Inventory?
- Inventory Finance unlocked funds that had been locked up in inventory.
- Helps you buy and stockpile inventory at a minimal cost while maintaining liquidity.
- Easy EMI repayment.
- Quick processing times.
- Up to 90% funding based on inventory value.
What are the eligibility requirements for Loans against Stock & Inventory?
- The borrower must be at least 18 years old.
- The applicant should be an Indian citizen.
- Minimum annual turnover: 30 lakhs
- Business must be functioning at the same location for the last one year.
- The CIBIL score must be above 750.
- The applicant must not have a credit default history with any bank or NBFC.
What documentation are required for a loan against stock and inventory?
- First, the applicant’s KYC documents include a PAN card, passport, Aadhaar card, voter’s ID card, electricity bill, water bill, and driver’s license.
- Business Address Proof – Ownership or rental agreement for business premises, GST registration, and business license.
  12-month bank statement.
- ITRs for two years, including balance sheets and profit and loss statements.
- GST returns for one year (if applicable).
- The cheque was cancelled.
- Copies of inventory invoices.
- Collateral paperwork.
- Stock value report.
- Collateral Documents
Different types of inventory financing :
1. Inventory Loan: It is simply a loan based on the value of the business inventory, wherein the loan amount can be obtained and used immediately from the lender.
2. Inventory Line of Credit: It is a credit limit sanctioned by the lender that allows the borrower to withdraw cash as many times as needed but not exceed the overall sanctioned amount. The interest rate will, however, apply only to the amount borrowed from the total sanctioned limit.
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MSME Loan Schemes Available In Assam
MSME Loan Schemes Available In Assam
In Assam

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Assam is a state in northeastern India famous for its verdant forests, tea plantations, and rich culture. The state’s MSME industry is thriving and contributes significantly to economic growth. The Assam government has developed a number of credit packages to help the state’s MSMEs thrive. These schemes aim to provide financial aid and other incentives to entrepreneurs who want to start or expand their firms. The state has also launched many measures to promote entrepreneurship, such as incubation centres and skill development programs. In this blog, we’ll look at some of the MSME loan schemes available in Assam, as well as their eligibility requirements. Below is a list of the top MSME lending schemes available in Assam.

Sarothi – a startup in Assam

Sarothi is a start-up MSME financing initiative developed by the Assam government to promote the state’s start-up ecosystem. The scheme’s primary goal is to give financial assistance in the form of a loan with interest subvention through a selected bank that serves all of Assam. Here are some of its highlights:
- Loan amount: Up to 10 lakhs.
- Interest Subvention: 5% Interest Subvention
- Loan tenure is flexible and dependent on project requirements.
- Promoter’s Margin: 15% of the project cost.
- Beneficiaries to be targeted New Entrepreneurs in Assam
Chief Ministers: Atmanirbhar Asom Abhijan

The state government of Assam’s major program is the Chief Ministers Atmanirbhar Asom Abhijan. The government hopes to create jobs by establishing entrepreneurial units around the state through this program. A family may only have one member eligible to receive benefits under this system. Here are a few of its highlights:

Loan amount: Up to 5 lakhs.
Permanent resident of Assam.
Loan tenure: Up to 7 years.
Margin money: 10% of project cost Age: Over 28 and under 40 years

Credit-Linked Capital Subsidy Scheme (CLCSS)

The Government of India started the Credit Linked Capital Subsidy Scheme in October 2000. This plan gives MSMEs the funding they need to upgrade their present technologies. This strategy enables businesses to improve their existing plant and machinery while increasing profits. This policy has no maximum loan restriction, however the subsidy is based solely on the loan amount sanctioned for P&M purchases. The primary features are as follows:
- Loan amount: no upper limit.
- Subsidy: 15% of loan amount.
- Annual guarantee fee: 0.75-1.0%.
  Loan tenureFlexible tenure based on the repayment capacity
Pradhan Mantri Mudra Yojana (PMMY).

The Pradhan Mantri MUDRA Yojana (PMMY) is a flagship central government scheme launched in 2015. It provides micro-loans to non-corporate, non-farm micro and small enterprises in both rural and urban areas.

PMMY offers loans under three categories, depending on the stages of business growth and funding needs:
- Shishu Mudra: Up to Rs 50,000.
- Kishore Mudra: Rs. 50,001-Rs. 5 lakh
- Tarun Mudra: Rs 5 lakh to Rs 10 lakh.
MUDRA loans are available through a variety of financial institutions, including public and private sector banks, regional rural banks, small finance banks, microfinance institutions, and non-banking financial companies (NBFCs).

Unlike other loan schemes, PMMY has no age, gender, duration, or interest rate requirements. All of these elements can vary depending on the loan category and the lending institution’s policies.

Prime Minister’s Employment Generation Programme (PMEGP)

PMEGP is a credit-linked subsidy system operated by the Ministry of Micro, Small, and Medium Enterprises (MSME) that intends to provide job possibilities through the establishment of micro-enterprises. The primary beneficiaries of this initiative are women, traditional and potential craftspeople, and unemployed youngsters. Here are some of its primary features:
- Age: Minimum age of 18.
  Interest rates vary between 11% and 12% based on the bank.
- Loan tenure: 3-7 years.
- Education qualification: VIII standard pass.
- Maximum loan amount: Rs. 1 Crore.
- Subsidy: 15% to 35%.
Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE).

The CGTMSE is a cooperative project initiated in 2000 by the Ministry of Micro, Small, and Medium Enterprises (MSME), the Government of India, and the Small Industries Development Bank of India. It promotes financial institutions to extend collateral-free lending to micro and small businesses. In the event of a default, the bank might submit a claim with the CGTMSE. The following are some of its primary characteristics:
- Loan amount: Up to 5 crore.
- Collateral not required.
- Loan tenure: 5-10 years.
- Annual Guarantee Fee: 0.37%-1.35%.
- Age: Minimum age is 18.
Stand Up India

Stand-up India is a central government project that was implemented in 2016. It gives bank loans for women and Scheduled Castes (SCs) and Scheduled Tribes (STs) to start businesses. Existing firms are not eligible for loans under this scheme because they are intended for the establishment of new businesses. These loans are made available through a variety of banks, including scheduled commercial banks, regional rural banks (RRBs), and smaller finance banks.

This initiative offers loans ranging from Rs 10 lakhs to Rs 1 crore. Interest rates and tenure vary depending on the type of the firm, as well as other considerations such as the lender’s credit policies.

SIDBI Make-in-India Soft Loan Fund for Micro, Small, and Medium Enterprises (SMILE)

The national government introduced SMILE, a project to provide financial help to 25 identified sectors under the ‘Make in India’ initiative. This program supports the ‘Make in India’ movement among entrepreneurs. SMILE provides ample cash for both the start-up and expansion of established businesses. The following are some of its primary characteristics:
- Maximum loan: tenure of 10 years.
- Loan: amount ranges from Rs.10 to Rs.25 lakhs.
- Interest rates: vary depending on corporate needs.
- Nature of loan: Term and quasi-equity loans.
Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE)

The CGTMSE is a cooperative project initiated in 2000 by the Ministry of Micro, Small and Medium Enterprises (MSME), the Government of India, and the Small Industries Development Bank of India (SIDBI). It promotes financial institutions to offer collateral-free credit solutions to micro and small businesses. In the event of a default, the bank might submit a claim with CGTMSE. Here are some of its primary features:
- Loan amount: Up to 5 crore.
- Collateral is not required.
- Loan tenure: 5-10 years.
- Annual Guarantee Fee: 0.37%-1.35%.
- Age: Minimum age is 18.
Conclusion

Finaxis is an internet platform for preparing financial reports to secure bank loans and investments. If you are an entrepreneur looking for a bank loan, you must have a well-written project report. We at Finaxis will assist you with this.

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How To Pitch You Business To Your Community, Friends And Family
How To Pitch You Business To Your
Community Friends And Family

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Someone who is beginning or running a business understands the value of pitching. Pitching to friends and relatives can be more difficult than pitching to strangers. Friends and family should be considered one of your key investing opportunities. These can lead to valuable relationships, investments, and instant business.

However, we have plans for entrepreneurs to discuss their businesses with friends, family, and the community.

1. Customize your elevator pitch.

Entrepreneurs should always have an elevator pitch prepared for each gathering. People have an attention span of approximately eight seconds. It’s critical to describe what your company is, why it’s essential, your business model, market potential, and value offer.

For example, pitching to someone with little business expertise appears different from pitching to your wealthy uncle, so avoid using professional jargon or acronyms that friends and family may not comprehend.

2. Look for friends and family with appropriate experience.

Starting with folks who understand your business or sector not only improves your pitch conversation, but also provides valuable business advise and direction. Look for well-connected friends, family, and community members with appropriate business expertise.

3. Evaluate financial availability and request assistance.

Determine which of your friends and family members can best help you. Don’t waste a difficult talk with a friend or family member who you know isn’t in the best position to help you. Explain how you intend to spend the funds and identify the various milestones you expect to attain.

4. Document the funding.

These partnerships are the most delicate since they are founded on deeper, more personal principles. Respect the risk and create a legal contract that holds everyone accountable. Do not rely solely on a handshake for any transaction, especially one with friends or family.

5. Keep communication lines open

Consider using social media and email blasts to promote your business and keep your community up to date.

Consistently reporting about your business is a way to keep you remembered and open to referrals. Consider social media and email blasts as options to pitch your business and update your community.

6. Write your business clearly.

It is critical to create and convey your company’s aims and possible success. Most friends and family will not read your complete business plan. You should be prepared to present an executive summary of your target market, financials, and overall strategy. A clear executive summary boosts your idea’s credibility and demonstrates your foresight.

Sharing your business strategy with your friends and family not only boosts your chances of getting business from them, but it also prepares them to be advocates and recommenders for your company.

Why should you pitch your business to family and friends?

Here are a few reasons why it’s crucial to pitch in and seek support from friends, family, and the community around you:
- They trust you and have the potential to bring in new business.
- It strengthens the community and serves as proof for prospective investors.
How do you announce your company to your network?

Here are some strategies for introducing your business to your networks:

1. Create a list of everyone you can contact.
Email addresses, LinkedIn connections, and Facebook contacts. You can send this announcement message via email, direct messaging, or a social network post.

2. Plan your emails. Plan
Reach out to 5-10 (or more) contacts daily.

3. Send emails and track answers.
To track your responses, keep track of the date you contact them, the date they respond, any prospective business it may bring you, and an appropriate follow-up date based on the response.

4. Meetups & Gatherings

Create a business plan to accompany your pitch.
What is the greatest approach to create and communicate a business plan with your friends, family, and community?

Sure, your friends and family may not be investors looking to give you millions, but they are sources of encouragement. It can also lead to new business and relationships that you might not have made otherwise. Bridge the gap, share your company idea, and begin pitching your venture to individuals around you.

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