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There are several financial institutions that provide emergency loans to people who are out of jobs. Secured loans are provided against a collateral or security.

The turnaround time for processing and disbursing the Shishu loans is 7-10 days. For the other two categories of MUDRA loans, Kishore and Tarun, the processing period is different from lender to lender.

Government business loans were introduced to provide funding to Micro, Small and Medium Enterprises and there are many schemes like the MUDRA scheme, PSB loans in 59 minutes, National Small Industries Corporation (NSIC) Subsidy.

The MUDRA scheme provides loans to people who are looking forward to starting a business or expanding their business. There are three categories under the MUDRA scheme

Mudra is a refinancing programme for banks and microfinance organisations. This programme is primarily aimed at small and medium-sized businesses (SMBs) across the country. It is solely available for any Indian person who has ambitions for a non-farming sector income-generating venture in the industrial or service sectors can avail of the MUDRA Loan. 

Individuals who are in need of funds for activities allied to agriculture are eligible for a MUDRA loan. Activities allied to agriculture are

The MUDRA scheme provides loans for vendors, traders, shopkeepers and other service sector activities. So if you are in need of funds for your hardware shop you can avail a loan under the MUDRA scheme. MUDRA schemes provide funds of up to Rs. 10 lakhs. According to the amount you need you can choose your MUDRA loan scheme categories: Shishu, Kishore or Tarun.

The government started the MSME scheme to promote small scale industries with their businesses. Only manufacturing and service companies can register and get benefits provided by the scheme.

Availing a loan when you have a steady flow of income and with a good credit score in hand will be easy. Lenders would prefer borrowers who have an income, so unemployed people might have difficulty in getting their loans approved. But that doesn’t mean that they will not qualify for any loans.

The Annual Percentage Rate (APR) refers to the annual rate of interest charged to borrowers and which is paid to investors. It is a percentage that represents the yearly cost of funds over a term of a loan or income earned on an investment.

Leverage in terms of finance is using borrowed capital as a funding source when a company is investing to expand its asset base and generate returns.

Finance charges, in general, is the fee charged by lenders on extension of credit. It could be a fixed amount or a percentage of the credit obtained. Finance charges allow the creditors to make a profit on the use of their money. The finance charges may vary depending on the type of financing.

Buying a car is certainly the dream of many individuals and it is also a symbol of status. When you want to own a car and do not have enough money, your dealers may arrange a lender for you to finance the car. This means the necessary amount will be paid to the car dealer by a financial institution. You need to repay the amount to the lender at an agreed interest rate and tenure.

Personal Loans are unsecured loans and your income proof is an important document to process your loan. However, if you are self-employed and don’t have documents for income proof, there are other documental proofs you can provide to avail of the personal loan. 

To create more job opportunities in the MSME sector, the MSMEs will be defined in terms of turnovers instead of the investments put into the business. MSMEs are classified into two categories - Manufacturing enterprises, Service enterprises.

When you are making a purchase the final cost will come along with a GST amount. You can claim input tax credit on the GST paid on the purchases that you make. So when you are purchasing machinery for your business, you would pay GST in addition to its original price. This GST can be claimed as credit in the same way as inputs. But you cannot claim input tax credit if you claim depreciation on the GST paid while purchasing the capital asset.

Goods and Service Tax (GST) is paid by the consumers for the products or services. But the GST will be remitted to the government by the businesses who are providing you with those products and services. This GST will be included in the final price that is to be paid by the consumer and then is passed on to the government by the seller. This system is adapted across the whole country, which means a single tax rate is applied. The objective of introducing GST in India was to eliminate tax on tax(double taxation).

MSME registration is not mandatory but registering will help you reap benefits from the government which include getting credit at low interest rates, incentives on products for export and many other benefits. To make sure that the MSME sector doesn’t get affected by competition in the market, the government has given exclusive rights to manufacture certain products only to this sector. This is called the reservation policy.

Bonds are fixed income securities in which the investor loans the money to an entity such as Government or Corporate companies. The investor can buy the bonds at a fixed or variable interest rate. Most of the bonds by the Government of India are offered at fixed interest rates. The money borrowed from the investor is used for government projects such as raising infrastructure for various sectors and expanding business by the companies.

Managing your finance like anything takes time to understand and improve on. It requires total commitment and financial discipline to master your finances. Here are a few tips to manage your finance effectively.

Financial managers take care of the financial health of an organisation. They produce financial reports, direct investment activities and develop strategies and plans for the long-term financial goals of an organisation. Financial managers monitor financial details that meet legal requirements of the company.