SOURCES OF FINANCE

FOR NEW VENTURE:

 What is finance and sources finance :

• Finance is a life blood of business.

• It is a money, which is required to do business and over come day to day expenses
of it.

• Sources of finance :

• It is a method of getting hold on money you need.

• Sources of finance is the most explored area especially for the entrepreneurs who is
about to start their new venture.
 Top 10 sources of finance for start-
ups:

• Bank loan. • Start-up incubators.

• Bootstrapping.
• Venture capitalists.
• Local economic development
• Crowd funding.
organizations.

• Smart lease.
• Friends and family.

• Angel investors. • Customers.

 Procedures for getting loans for start-
ups:
• Obtain a copy of CIBIL report with score.
• Get together some essential financial statements.
• some of the essential financial documents
• Make a projection of future operations.
• Different institutions have different requirements for small business loan applications.
• If yes, then loan will be granted.
• If no ..
 5 Leading business loan options
for entrepreneurs:

• Cent Kalyani from central bank of India .

• Shree shakthi package from state bank of India .

• Shringar and Annapurna from Bhartiya mahila bank .

• Synd mahila shakthi from syndicate bank .

• Shakthi scheme from dena bank .

 Shringaar /
Stree Shakti (SBI Synd Mahila Shakthi Shakti Scheme
comparison Criteria Cent Kalyani (CBI) Annapurna (Bhartiya
and Associates) (Syndicate Bank) (Dena Bank)
Mahila Bank)
Applicant age between Women entrepreneur
Women over 18 years Women need to own Women entrepreneur
20 to 60 years for with adequate
Eligibility of age with no income 51% or more of in the with >50% ownership
Shringaar, 18 to 60 knowledge /experience
ceiling for assistance enterprise of business enterprise
years for Annapurna of business activity
Up to Rs. 20 Lakhs for
Up to Rs 10 Lakhs for retail trade, education
Max. Loan Amount Up to Rs. 100 lakhs Up to Rs. 50 lakhs Shringaar/Up to Up to Rs. 5 Crore and housing. Rs.
Rs50,000 for Annapurna 50,000 under micro
credit schemes
Varies based on loan Maximum of 10 years Varies based on loan
7 years (Shringaar)/3
Loan Term 1 year to 7 years amount and other including moratorium amount and other
years (Annapurna)
factors period factors
Base rate+0.25% for
loans up to Rs. 10 0.50% below Base 0.25% below base
0.25% below base rate
Lakhs. Over Rs. 10 rate if loan amount Base rate+ 2% for rates for women
for loans over Rs 10
Interest Rates Lakhs, Base exceeds Rs. 2 Lakhs, Shringaar and Base rate applicants who are
Lakhs, lesser amounts
rate+0.50% (+ otherwise as per base + 1.5% for Annapurna majority stake holders
at base rate
applicable tenure rate of bank in the company
premium)
Varies based on loan Varies based on loan
Varies based on factors
Processing Fee Fully Waived amount and other Fully Waived amount and other
such as loan amount
factors factors
 Top 10 challenges faced by
entrepreneurs in repaying debt :
• Lack of repayment capacity .

• High rate of interest .

• Impacts on your credit ratings.

• Cash and collateral .

• Impact on goodwill of a company.

• Refuse of lending.
VIJAY MALLYA :
Born : 18th December 1955 .
Place : Kolkata .
Nationality ; india .
Spouse : sameera tyabjee mallya .
Parents ; vittal mallya , Lalitha Ramaiah mallya .
Occupation : businessman and political.
Nickname : king of good times .
Controversy : not in a position to repay the debt .
escorted to London [due to controversy]
Lender : state bank of india .
Loan amount : 9000crs.