The 3rd quarter of 2019 witnessed a significant boost in the fundraising for start-ups that touched the $2.5 billion mark. The highest investment recorded across 2019, it can be attributed to the introduction of new players to the investment market.
Much of the investments had been absorbed by Kerala. The state entered into collaborations with a globally-acclaimed technology firm.
Subsequently, there are scopes of Kovalam transforming into one of the largest congregations of start-up ecosystems across Asia.
With this business conception background, that the state is in dire requirement of substantial funding, is evident.
While start-ups are still in their initial outset-phase, the need for small funding options, such as business loans in Kerala is escalating exponentially.
With a lower potential to meet the eligibility criteria, what bourgeoning entrepreneurs require are convenient yet reputed financing options.
The funding so acquired can be utilised to set up their digital presence considering that it is a prevalent souk for all trades irrespective of their genres.
Two of such funding choices have been discussed –
MUDRA loan, a sub-policy under the Pradhan Mantri MUDRA Yojana was announced by the Indian Government in 2008 to provide funding for the development of businesses.
Considering the financial leverages that it brings into a business, a detailed idea about this type of business loans in Kerala is imperative.
It includes gaining familiarity with its three major categories –
- Applicable to entrepreneurs aiming to start their businesses.
- Advance is capped at Rs.50,000.
- The advance availed can be used to fund diverse business expenses including – purchase of state-of-the-art machinery, funding the working capital, etc.
- An advance of up to Rs.5 lakh.
- Designed for entrepreneurs aiming to expand their business.
Nominal list of documents:
- Balance sheet – current and that of 2 years ago.
- Bank account statements.
- Income tax returns.
- Sale returns files.
- Applicable for entrepreneurs with an established business and aims to expand it.
- Advance is capped at Rs.10 lakh.
- Minimum documentation requirement – KYC documents and caste certificate.
Availing such business loans in Kerala ensure that borrowers have access to a government financing option.
However, considering that the funding in such cases is often inadequate for ventures to jump-start their trade, the preferred option is to opt for business loans from reputed financers.
Business loans from NBFCs
This funding option caters to the customised financial requirement of its prospective borrowers.
Along these lines, availing business loans can be financially beneficial, considering that individuals approach a lender post-comparing financers in the market.
Considering that availing such advances is feasible online, these are also regarded the most preferred unsecured business loan in Mumbai.
Such funding option brings with it multiple lucrative features that include –
- No collateral.
- A high-value loan amount of up to Rs.30 lakh.
- Hassle-free application procedure.
- Nominal eligibility criteria.
- Minimum documentation.
Its attractive rate of interest ensures mitigated financial burden during the repayment procedure. It is especially beneficial for new entrepreneurs in the game.
As an added leverage, leading NBFCs like Bajaj Finserv also provide pre-approved offers that ease the application procedure to avail such financial assistance.
With such an unsecured business loan in Mumbai and Kerala, running trade becomes a convenient affair.
The availed amount can be used to boost the working capital of the business sans straining the budget.
With a convenient repayment process that is well-backed by instant approval and quick disbursal of the loan amount, companies in their seed stage can have suitable access to considerable funding.
Such financial initiatives are well-substantiated with Kerala’s proactive state regime that is eager to embrace emerging technologies into their business opportunities, thereby creating an innovative and vibrant ecosystem.