This initiative is going to be a boon for people living with HIV. People in Manipur acquired the virus through intravenous drug use. So, the Government is willing to help and now, with microloans, they can start weaving business, small embroidery or a grocery store business.

However, there is a concern that since people in Manipur are drug users, they may misuse the loan money to buy more drugs. So, there has to be a monitoring system to look into the situation. It is also crucial to find out how long banks take in implementing this loan scheme throughout India. The reason is India’s total HIV burden is much greater than the state of Manipur.

The financial stress on people of Manipur due to HIV is too great. The disease crippled people as 43 percent of HIV households either borrowed or liquidated assets to overcome financial overburden. The micro-loans are a respite for households facing serious constraints.

Micro-loan initiative of India will see ‘United Bank of India’ and ‘State Bank of India’ offer loans up-to 500,000 to people who meet eligibility criteria. Indian Nationals having a valid work plan and who are HIV patients can apply for this loan grant. The micro-loan is going to support entrepreneurship as people in Manipur are found to be skilled and versed in traditional handicrafts, crafts, et cetera, and so on.

This article was submitted by Raj Tulshan, Director of Business Development of Biz2Credit. Biz2Credit is a small business marketplace that connects entrepreneurs with financing options and advice to grow their business. Send all questions to info@biz2credit.in

It is part of India’s decision as trade normalization process to allow FDI from Pakistan. Currently, trade between the two countries is at some $2.5 billion per year. The Indo-Pak trade agreement is a big pie for companies on both sides. It is a win-win situation for small businesses too.

Companies on both sides are scouting opportunities. Pakistan based businesses have already started to contemplate on how they are going to make an entry in Indian market – whether as a franchise, a distribution model or something else. The mood is upbeat as there is the realization that there can be benefits on both sides.

Procedural requirements for FDI are underway. Talks are also being held for allowing banks to open branches in India and Pak. RBI and State Bank of Pakistan have expressed interest to start branches in India. Banking services will help in boosting small business loans to entrepreneurs.

Trade of goods has been liberalized so far. Now, Pakistani industries and banks are showing keen interest in setting up business in India. This is possible with a policy decision on cross-border FDI. India-Pakistan Business Council will also start soon and there will be a formal agreement on multiple entry business visas.

This article was submitted by Raj Tulshan, Director of Business Development of Biz2Credit. Biz2Credit is a small business marketplace that connects entrepreneurs with financing options and advice to grow their business. Send all questions to info@biz2credit.in

Funds are primary in nature when it comes to start or expand any business. Coupled with accountability of capital usage, planning and its implementation can be secondary in terms of the success and failure of any business.

Nonetheless, to meet the business requirements of working capital, buying machinery or salary etc. a loan can be a useful source of financial assistance. Now days, obtaining loan have several advantages. Small business loans can be used for different purposes and sector wherever a business needs them. Flexibility in terms of repayment of a loan, interest, security, and expert advice also works as an advantage.

Requisites improve the chances of obtaining business loans are:

Business Plan: A good business plan should not only be well written or formatted but it should be presented appropriately.

Credit Rating: A good credit rating is a convincing way to get an approval of business loans. Lenders always consider borrowers’ past repayment record and current credit rating.

Detailed Record: Transparency while presenting documentation related to ITR, P&L A/C, and balance sheet certainly helps applicants to get hassle-free loans.

Business loan is an additional income with a repayment clause but it is always recommended to use it wisely for the growth of a business in long-run.

Morbi is no longer a favourite destination for wall clock buyers for the negative growth Morbi has been experiencing. The main reasons are increase in Value Added Tax (VAT) and transportation costs. The next door neighbour, ‘Chinese Players’, has also intensified the competition. Now the industry pays 15 % tax out of which 12.5 % is VAT and 2.5 % additional tax.

Clock industry workers have started to migrate to other industries like Ceramics considering bleak outlook. Some Morbi workers have also migrated to Ahmedabad and Rajkot for work. The State Government has been requested to reduce VAT to four percent but no response has been found as yet.

The situation has led to decline of even Ajanta Clocks by 75 percent. The company is now producing 25,000 clocks every day as compared to 1 lakh clocks per day 10 years before. It is true that the market share of Morbi has declined but then it is still leading clock producer in India. A lot can be done if VAT rates are brought down and the manufactures are provided small business loans.

The increase in oil process has led to rise in transportation costs. This resulted in increase in production cost of wall clock manufacturers by 40 percent. Growth of clock industry in other Indian cities has led to Morbi’s business decline by 25-30 percent. Out of the 300 clock units in Morbi five years ago, only 100 to 125 are active.

The party is also seeking the deferred recovery of small business loans until the economic slowdown improves.

Additionally, the Reserve Bank of India will extend a Rs 7,000 crore line of credit to SIDBI (Small Industries Development Bank of India) before March 31 to provide loans to Indian small businesses. Out of the Rs 7,000 crore, about Rs 6,500 crore will be lent to public sector banks at a rate of 6.5 per cent. The rest of the funds will go to State Finance Corporations.