Small Business Loans: Biz2Credit.in » stimulus package http://blog.biz2credit.in Small business advice for financing, marketing and growing a company Wed, 23 May 2012 08:44:57 +0000 en hourly 1 http://wordpress.org/?v=3.3.2 Union Budget 2012-13 – Blend Of Highs And Lows For Indian SMEs http://blog.biz2credit.in/2012/03/27/union-budget-2012-13-blend-of-highs-and-lows-for-indian-smes/ http://blog.biz2credit.in/2012/03/27/union-budget-2012-13-blend-of-highs-and-lows-for-indian-smes/#comments Tue, 27 Mar 2012 06:23:32 +0000 Biz2Credit Advisor http://blog.biz2credit.in/?p=1882 Union Budget 2012-13 is a mixed bag for Indian SMEs. The proposals contained in the new budget drew mixed reactions from SME owners. Industry experts feel that in-spite of some concerns there are also positives for SMEs in the Budget.

The central excise and service tax tariff hike is affecting SME’s heavily. The reason is it got introduced as ‘stimulus package’ during recessionary days but then now it may lead to overall inflationary pressure. Service tax hike can hit the domestic software service market and hurt Indian IT SMEs. Service tax increase from 10% to 12% has been proposed in this budget.

There is confusion among SME owners on how things are going to work when there arises need of government assistance to operate business. The President of Karnataka Small Scale Industries Association (KASSIA), Prakash N Raikar, further adds to the confusion as he says that SME entrepreneurs should no longer depend on Government and its schemes. SMEs now have to look for their own skills and depend on their expertise to run their enterprise without friction.

But then the budget also has its own bright sides. There is the proposal of the ‘Goods and Services tax’ (GST) to be introduced by August 2012. This will help in building up momentum in overall performance of the SME sector. Launching the ‘GST Dispute Settlement Authority’ is also a positive step toward filing returns. It is going to bring change and will help to streamline tax compliances and other SME functions. SMEs can find a better work place, uniformity in tax payments, and will not have to bother for multiple tax point any more. The National Skill Development Corporation will receive more funds from Rs 1000 crore to Rs 2500 crore. This will definitely employ more skilled labour.

Biz2Credit Logo 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

]]> http://blog.biz2credit.in/2012/03/27/union-budget-2012-13-blend-of-highs-and-lows-for-indian-smes/feed/ 0 Indian public sector banks to lend over Rs 13,000 in business loans http://blog.biz2credit.in/2009/02/02/indian-public-sector-banks-will-lend-over-rs-13000-in-small-business-loans/ http://blog.biz2credit.in/2009/02/02/indian-public-sector-banks-will-lend-over-rs-13000-in-small-business-loans/#comments Mon, 02 Feb 2009 06:06:18 +0000 Biz2Credit Advisor http://www.biz2credit.in/blog/?p=440 Indian public sector banks will lend over Rs 13,000 in small business loans from January to March at rates under 10 percent. The government announced the new initiative as part of the country’s second ‘stimulus package.’

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.

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