Small scale businesses are those that employ low amounts of capital. These companies are labour intensive and are a source of employment for the people apart from providing quality products and services to the nation. They also participate in the act of nation building by contributing to the GDP.
What Are Small Scale Businesses?
Small-scale industries require minimal capital but require a lot of labour. Manufacturing or service industries are examples of small size industries. Tiny scale industries are made up of limited businesses that produce things or offer services using smaller machines and a small number of workers and employees.
The company must follow the rules set forth by the Indian government. Small-scale enterprises in India are vital to the country’s economy, and they provide a variety of job opportunities for trained workers. Small-scale industries, after all, are critical to the economy’s financial and social well-being.
These sectors thrive in a developing country like India due to high demand and opportunities. Some small-scale businesses export commodities, bringing foreign currency into the country. Small and mid-scale industries account for over half of all products delivered in India (45-55 percent). Vendor demand for global enterprises has resulted in the formation of several small-scale industries.
The Government of India has specific requirements for small scale companies in terms of investment the company is making and the revenue it has created.
Manufacturing/production, auxiliary, and service sectors are the three types of small-scale enterprises.
Manufacturing Industries: Units that create completed commodities for consumption or use in processing industries are referred to as manufacturing industries. Individually owned businesses make up the majority of small-scale industries. Power looms, engineering industries, food processing, and other manufacturing small scale enterprises are examples.
Ancillary Industries: Large corporations or multinational corporations (MNCs) produce finished goods, but they do not typically manufacture all the components themselves. Auxiliary industries are the companies’ vendors. Ancillary industries can also be defined as businesses that manufacture machines for multinational corporations or medium-sized businesses.
Service Industries: Repair shops and maintenance businesses are examples of service industries.
There are other feeder industries and mining or quarries, in addition to these types of businesses.
There are several small scale industries that need a small investment and can turn out to be extremely profitable.
Some examples of profitable small scale businesses include
- Cake Making
- Pickles
- Homemade Snacks
- Incenses and candles
- Handicrafts
- Jute bags
- Handmade chocolates
- Organic Soaps
- Nursery plants
None of these businesses would require an initial capital of more than Rs 50,000. The work can be started based on orders received so that too much inventory need not be maintained. Once the orders start flowing in, you will have enough working capital to rotate. In the initial stages, it is more important to establish the quality of your products and build customer loyalty. Delivering products of good quality at the right time at reasonable prices is the best way to get word of mouth advertising and repeat orders.
What Are Business Loans?
A business loan is a type of funding that you might use to address the urgent needs of your expanding company.
If you need money to develop your business, increase production, or purchase machinery, look no further than LoanTap business loans.
Take advantage of low-interest financing, borrow money without putting up any collateral, and get credit that can be returned over a defined length of time.
Apply for an MSME Loan with LoanTap to satisfy your business’s funding needs fast and conveniently. Borrow up to 2.5L in loan amounts for up to 36 months at low interest rates!
The features of business loans offered by LoanTap are:
- Instant Approval And Disbursement:
Loan approval is a simple online process. Through your online LoanTap account, you can withdraw your tranches quickly.
- Repayment Options That Are Flexible:
You have to pay interest only when you withdraw. Repayment and withdrawal options are unrestricted.
- The Bare Minimum Paperwork:
For all of our personal lending products, we complete the bare minimum paperwork. This is less tiring for both the clients as well as the staff. A majority of the work is done online.
- Processes That Are Transparent:
There are no hidden fees or charges for paying in advance. Our processes require minimal documentation and are secure to work with.
Eligibility Criteria
- Individuals must be Indian citizen or resident
- Individuals must have submitted their latest ITR.
- Citizens of India who are at least 22 years of age.
- Borrowers must have a net monthly income of over Rs 30,000 per month
LoanTap understands the needs of small scale enterprises and can assist them with small business loans that will help them set up shop. Most of these businesses are run out of homes and do not require too much manpower.
The LoanTap process of business loans is kept simple and user friendly to ensure that borrowers are able to use the interface comfortably and place their requirements. The paperwork is kept to the bare minimum. Borrowers can choose from a range of flexible repayment options so that their monthly budget is comfortable and they are able to pay their EMIs on time.
If you are a small scale entrepreneur, don’t give up on your dreams. LoanTap is here to help you with structured loan products that can help you with your funding needs at affordable rates. You can pay interest on the amount you choose to withdraw and this will provide you with a backups support whenever you need funds for an emergency business issue. You chase your dreams. We will be right here with you, helping you turn them into reality.
