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Assignment 5

The assignment involves visiting a bank or financial institution to gather information on funding schemes for small-scale enterprises. Key findings include various loan options such as term loans, working capital loans, and government-subsidized loans, along with eligibility criteria like a solid business plan and good credit history. The conclusion emphasizes the importance of evaluating funding options and proper documentation to secure financial assistance.

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29 views2 pages

Assignment 5

The assignment involves visiting a bank or financial institution to gather information on funding schemes for small-scale enterprises. Key findings include various loan options such as term loans, working capital loans, and government-subsidized loans, along with eligibility criteria like a solid business plan and good credit history. The conclusion emphasizes the importance of evaluating funding options and proper documentation to secure financial assistance.

Uploaded by

dee.m4852
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© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as DOCX, PDF, TXT or read online on Scribd
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Assignment 5

Aim:
Visit a bank/financial institution to enquire about various funding schemes for small-scale
enterprises.

Introduction
Starting and expanding a small-scale enterprise requires adequate financial support.
Various banks and financial institutions offer funding schemes to assist entrepreneurs in
achieving their business goals. This assignment aims to document the process of visiting a
bank/financial institution to gather information regarding such funding schemes.

Objectives
- To understand different funding schemes available for small-scale enterprises.
- To gather information about eligibility criteria and application processes.
- To assess the benefits and limitations of various funding schemes.

Methodology
1. Selection of Financial Institution: Choose a bank or financial institution that offers
funding for small businesses.
2. Visit to the Institution: Personally visit the bank or schedule a virtual consultation.
3. Discussion with Bank Representatives: Inquire about the available funding schemes,
eligibility criteria, interest rates, repayment terms, and required documentation.
4. Collection of Brochures and Documents: Gather informational material provided by the
bank for further analysis.
5. Comparison of Different Schemes: Evaluate different funding options to determine the
most suitable scheme for small-scale enterprises.

Findings
During the visit, the following funding schemes were explored:

1. Term Loans: Financial assistance for purchasing machinery, equipment, or infrastructure


development.
2. Working Capital Loans: Short-term loans to manage daily business operations and cash
flow.
3. Government Subsidized Loans: Special schemes such as MUDRA loans, SIDBI loans, and
MSME credit schemes.
4. Overdraft Facilities: Credit limit provided by the bank to manage short-term financial
needs.
5. Equity Financing and Venture Capital: Alternative funding options for high-growth
potential enterprises.
Eligibility Criteria
- A well-documented business plan.
- Registration of the enterprise under MSME guidelines.
- Good credit history and financial stability.
- Submission of necessary documents such as PAN, Aadhaar, and business registration
certificates.

Conclusion
The visit to the bank provided valuable insights into various funding schemes for small-
scale enterprises. Each scheme has its unique benefits and limitations, and entrepreneurs
must carefully assess their financial needs before choosing a suitable funding option. Proper
documentation and a strong business plan are crucial in securing financial assistance from
banks and financial institutions.

Recommendations
- Entrepreneurs should research different funding options before applying.
- Maintaining a good credit score can enhance loan approval chances.
- Consulting financial advisors can help in selecting the best funding scheme.

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