Business Loan appraisal

Posted by on Jan 21, 2011 in Business, EPM World, Project Finance, Loans | 2 comments

The common requirement for an entrepreneur is availing loan / financial support from Government or Banks.  Mostly the government support is extended in the form of capital subsidy, interest subsidy, marketing support, technology support, skill development, credit guarantee and more as could be seen from http://www.dcmsme.gov.in/schemes/sidoscheme.htm.

However, all the financial support is routed through banks.  Term loans for CAPEX are released in the name of machinery & equipment suppliers while the Working capital is made available in the form of OCC.   The sanction could be through fund based or non-fund based or mixed.

Every prospective borrower of loan would get a common question as to whether bank will sanction loan for the project.  Even the regulating authority of respective government schemes would not be able to confirm about the prospects of loan sanction.

I have attempted to draw important points evaluated by banks in the sanction of loan.  Mind these are not exclusive.  If you feel you have answers for most of the things, you will sure get loan from the Bank.  After all, Banks are always keen to lend money where they find business i.e. confidence and assurance that the borrower will not default in loan repayment.  Hence, it is the duty of borrower to satisfy the business requirement of banks so that he become eligible to draw deserved financial support.  Once a healthy relation is formed with a banker, we can always be sure about drawing further support in the name of extended Term Loan or extended Working Capital or any other mode.

epmworld Loan appraisal

Loan sanction is a cumbersome process.  Depending upon the availability and submission of various data by the borrower, it would take a minimum of 4 weeks time for a new loan application for a start-up project.

Read More

Benefits to MSE sector in Andhra Pradesh

Posted by on Jan 17, 2011 in Business, EPM World, Government Schemes, Self-employment, Start-up business | 0 comments

Government of Andhra Pradesh through its Industrial Investment Promotion Policy (IIPP 2010-2015) has provided several incentives for Micro, Small and Medium Enterprises.  The provisions read along with the PMEGP and CGF schemes will help new entrepreneurs realize their dreams to gain self employment.  I have tried to compile the benefits.  May please visit http://www.industries.apcgg.gov.in for more information or raise your query herein so that I will try to attend to it to help you setting up your own business.

Incentives to setup business in AP

Business Guide

Read More