Union Finance Minister Piyush Goyal in Interim 2019 budget gave a big boost to women entrepreneurs in form of a 3% benefit for women-owned MSMEs. This is not just a strong movement towards women empowerment, but also recognizes the larger role played by small and medium businesses. This apart, the Budget gave a 2% interest subvention for micro, small and medium enterprises for loans up to Rs. 1 crore. Such announcements are likely to financially help existing and upcoming entrepreneurs, who rely on business loans to set up and grow their enterprise.
The Finance Minister said in his budget speech that the government has undertaken many effective steps to strengthen the MSME sector, which provides employment to crores of people. Recently, a scheme of sanctioning loans up to Rs. 1 crore in 59 minutes has been launched, the union minister informed.
The 2019 interim budget has special goodies for entrepreneurs which will inspire more to join the self-employment movement.
- GST registered SME units will get 2% interest rebate on an incremental loan of Rs. 1 crore.
- The requirement of sourcing from SMEs by Government enterprises has been increased to 25%.
- Of this, the material to the extent of at least 3% will be sourced from women-owned SMEs.
For entrepreneurs, financing is critical. Interest rebate and sourcing boost announced in Budget 2019 will go a long way in helping entrepreneurs. This would also encourage more young people to join the self-employment space, and create jobs for others.
It takes financial resources to set up a business. In manufacturing or production area, a microenterprise is an enterprise where investment in plant and machinery does not exceed Rs. 25 lakh. A small enterprise is an enterprise where the investment in plant and machinery is more than Rs. 25 lakh but does not exceed Rs. 5 crores, while a medium enterprise is an enterprise where the investment in plant and machinery is more than Rs. 5 crores but does not exceed Rs. 10 crores.
In the services arena, a microenterprise is an enterprise where the investment in equipment does not exceed Rs. 10 lakh. A small enterprise is an enterprise where the investment in equipment is more than Rs. 10 lakh but does not exceed Rs. 2 crores, while a medium enterprise is an enterprise where the investment in equipment is more than Rs. 2 crores but does not exceed Rs. 5 crores.
Whether you want to revamp your business, launch a new business, you will need funds. Use business loan for your business to buy new machinery, and increase working capital. Tata Capital offers unsecured a business loan for every existing and aspiring entrepreneur.
With norms in place to be registered as an SME/MSME business, you will require to arrange finances so to have a trustworthy and compliant business. Given the cash crunch and initial hiccups, you will need customized business loans to suit your business plan. This is where dealing with a trustworthy financial institution can help you access quick and hassle-free funding with flexible options. You can get a business loan amount from Rs. 5 lakh to Rs. 50 lakh for 12-36 months starting at 1.58% per month interest (19% annual).
If you are thinking of growing your business after Budget 2019, go ahead. For existing enterprises, business loan eligibility is not a problem. You as the owner of a business should be in the age group of 25-65 years, while your business must be in existence for three consecutive financial years. There are some other parameters like cash profit, rising turnover, and audited financial documents.