Any business organisation requires funds either for its expansion or maintaining daily operations like accounts payables, clearing bills, covering other wages.
Working capital is the fund that is utilised to operate the day to day expenses of a business. Thus, an organisation needs to hold enough liquid capital to run the business efficiently.
Contrary to any privately-funded businesses, small and medium business entities find it tougher to maintain such capital.
However, these small-scale enterprises not only provide several employment opportunities but also contribute to about 40% of the entire GDP. Thus, the government comes up with several loan schemes to help these organisations.
Here is a list of such loans-
Working capital loans help businesses to cover the problems with general business expenditures because of inconsistencies in seasonal sales, sudden growth in business, buying equipment, etc.
Its features include –
The primary objective of SMILE or SIDBI Makes in India loans for enterprises is to provide funding to the MSME sector.
Borrowers who require financial support to expand their current business can opt for these government-backed MSME loans.
Stand-Up India loan scheme is explicitly designed to finance individuals who are from SC/ST category and women entrepreneurs helping them start their business.
However, individuals can always opt for other Business Loans from reputed NBFCs like Bajaj Finserv. Borrowers can avail a loan amount of up to Rs.30 lakh at affordable interest rates with flexible withdrawal and repayment facilities.
Moreover, this financial company also provides pre-approved offers that help the borrowers to go through a hassle-free approval process. Other than business loans, these offers are also applicable to different financial products like personal loans and more.
Furthermore, applicants can check their pre-approved offers only by submitting their phone numbers and names online.
So, individuals can opt for any of these government loan schemes mentioned above to manage their working capital from time to time. However, borrowers should assess the reasons to choose a working capital loan to utilise the advance effectively.
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