Festivals are the season when businesses grow at an exponential rate.

Wholesalers, manufacturers, and retailers take advantage of this opportunity to offer many more items with various deals. Any growth in business volume needs funding. During the festive season, the banking industry is the primary backbone for small and retail companies. They offer a range of financial products with attractive interest rates that allow small-scale businesses to operate efficiently during joyful times.

The government of India is preparing numerous initiatives to help small-scale companies in India. “Vocal for Local,” a Government of India initiative, supports small-scale businesses made in India. The imports are decreased while the materials used are sourced from small-scale industries. The government also links with microfinance institutions, NBFCs, and banks to offer financing to small businesses.

Micro Small And Medium Enterprises (Msme) Are The Backbone Of Atmanirbhar Bharat

MSMEs account for nearly 40 percent of the country’s Gross Domestic Product (GDP). This is equivalent to almost 40 million businesses across non-organized and organized sectors. MSMEs are business structures that are guaranteed that create employment and stimulate healthy growth across the economy. The government of India has initiated numerous financing options for MSMEs to encourage growth. Financial institutions encourage borrowing through GoI initiatives during festive times by offering competitive interest rates. The funds are provided to businesses that export to boost international trade. Here are some of the most popular financial products available under GoI programs through banks.

Loans Under MUDRA Scheme

MUDRA Loans are low-cost, unsecured small business loans that help small and micro companies. Micro Units Development and Refinance Agency Limited (MUDRA) offers financing through Banks, Micro-Finance, and Non-Banking Financial Institutions (NBFC) that refinance small-sized enterprises. The interest rate begins at 7.30 percent, and the repayment period ranges between one and seven years. Every central public sector bank and NBFC offers MUDRA loans. There are three types of MUDRA loans to choose from.

Udyogini

Udyogini offers a small-business loan scheme for rural women entrepreneurs created by the Women Development Corporation. The loan amount is between Rs 10,000 and 3 lakhs, with a 30 percent subvention.

Stand Up India

The loans range from 10 lakhs up to Rs 1 crore for new business ventures in manufacturing, services, and trading.

Credit Guarantee Schemes for Micro and Small Enterprises and Credit-Linked Capital Subsidy Schemes are among the other finance options backed by the Government of India. Most loans made available by this GoI initiative need to be secured. The rate of interest is lower than commercial loans offered by financial institutions.

E-Commerce, Online Business The New Business Era

Red Seer, a strategy consultant firm, 2022, says that companies in the E-Commerce industry will grow by 28% in the festival season, year-on-year. It’s exciting to learn that 3 trillion dollars worth of transactions were conducted on online platforms by 2021, according to the PhonePe report. Gifts for personal and corporate occasions, clothing, electronics, kitchen, and cooking appliances are excellent selling items online. E-Commerce and instant loans made available through digital platforms assist small businesses in coping with the growing demand during the Christmas season.

Small Business Loans Are Offered During Festive Seasons

Here’s a look at small business loans provided by the top financial institutions

Conclusion

Take advantage of the smaller commercial loan deals during the Christmas season. They are one-time offers and are considerable savings in terms of financial cost. The frontiers of business are expanding after the worst-hit pandemic. Now is the time to grow your business exponentially through size, customer count, and geography. Get ready to apply for that Small Business Loan. Please take advantage of the sunshine while it shines.