A Micro-Units Development and Refinance Agency Loan are provided under an Indian Government scheme called the Pradhan Mantri Mudra Yojana or PMMY. It was initiated in 2015 to help small-scale businesses succeed and expand. Companies and businesses belonging to both the non-profit and profit sectors can secure a Loan under this.

Types

The PMMY scheme makes it eligible for applicants to avail of Business Loans ranging from Rs. 50,000 up to Rs. 10 lakh. Based on…

Businesses need capital to operate. This is utilised to leverage their working capital, pay for new equipment, cover the salaries of employees, etc. However, sometimes firms might not have enough funds to pay for expansion, modernisation, carrying out day-to-day requirements, etc. This is when the need to raise capital arises and can be done in two ways, by venture funding or by applying for a Business Loan.

A Business Loan is a Secured Loan offered by banks in India to businesses.…

Whether it is small or big, every business requires funds to grow and stay relevant in the long run. However, to do this firms need an adequate corpus of funds which may not be always available. This is when borrowing money becomes the only viable option. While some companies may go ahead with offering Equities to raise external funding, others might stick to applying for a Business Loan.

Business Loan meaning

A…