CGTMSE scheme
All the emerging businesses in India, be it micro, small, or medium are in constant need of finances. Such a need can arise due to several reasons such as expansion, purchase of heavy machinery, payment to creditors, working capital issues, or paying off business dues. But many times due to less knowledge of finance they do not receive proper guidance on the cause. Hence, we at Terkar Capital come into the picture for providing consulting on raising finances. We have a variety of products available in secured funding as well as unsecured funding based on the requirement of the borrower. CGTMSE can be the best option for Small and Mid-size enterprises to raise finance which acts as a major source of funds to them.
Features of the scheme
1. The initiative was launched to help small businesses grow in a competitive market and assist entrepreneurs to build their businesses and avail of collateral-free loans easily and conveniently.
2. The scheme also aims at strengthening the credit lending facility to developing industries and help them raise funds for the same.
3. Being a collateral-free loan, the process is quite quick and convenient.
4. It has the facility of guarantee cover for their lenders which will cover their loss in case of default by the borrower. The guarantee cover will exist until the total tenure of the loan credit.
5. The guarantee coverage of the scheme ranges from 70-85% in case of non-payment by the borrower.
6. CGTMSE has a guarantee cover of 50%/75%/80%/85% as per the diverse eligibility criteria.
7. The maximum number of funds availed in this scheme is Rs. 200 Lacs.
8. CGTMSE provides good guarantee covers to North East Region Women Entrepreneurs as well and encourages them to expand their businesses.
The rate of interest may differ as per the market conditions
Procedure for CGTMSE scheme
1. Prepare a project report/ business plan
The crucial step is preparing the project report or a business plan. It has to be submitted to the lending company. Here the lending company will scrutinise whether the company is eligible under the scheme or not.
2. Scrutiny of documents
The lending institution or company will do a thorough investigation of the required documents and proceed with loans.
3. Sanction the loan
The lender will sanction your loan after duly verifying your documents
4. Obtain CGTMSE cover
Once the loan is sanctioned by the bank, the bank will apply to the CGTMSE organisation and obtain CGTMSE scheme cover for the loan sanctioned. After obtaining the loan, the customer will have to pay services charges or fees as per the requirement.
Learn more about CGTMSE Loan process from the case study.
Eligibility for CGTMSE (Borrower)
- The applicant must be categorised as micro and small enterprises.
- CGTMSE cover is available for Loans to Micro and Small Enterprises (MSE) engaged in manufacturing or service activities.
- CGTMSE cover is not available for loans to enterprises engaged in retail trade, educational institutions, training centres, self-help groups, and agriculture.
- The business must have at least 3 years of continuity.
Eligible Lending Institution:
CGTMSE has designated Member Lending Institutions (MLI) which can provide loans to MSMEs. In this list, there are Government Banks, Scheduled Commercial Banks, Regional Rural Banks, NBFCs, Financial Institutions, etc. who have signed an agreement with the CGTMSE ministry.
Why Terkar Capital?
If you are looking for a reliable consultant for raising finance, Terkar Capital can best suit you. It is one of the most modernised and highly specialised finance facilitators in Pune, Mumbai, and India. We understand the borrower's needs, strengths, and weaknesses and work hard to provide professional services. Our timely and professional services make us different from others. Apply for a CGTMSE loan with Terkar Capital.
But in the last few years, the business sector is almost saturated as the competition is significantly stronger these days.
If you do not have a proper plan to go with the flow, your business does not exist in the marketplace.
Through personal protection, one can eliminate EMI repayment's unnecessary headache, check bounce, and delayed payment.
It is usually suggested to take a suitable MSME loan instead of using your personal savings as it will help in any emergency in the future.Well, specific valid reasons are there why one should opt for an SME loan.Interest Rate:These days plenty of options are available from where one can get an MSME loan quickly.
Banks, Corporate sectors, private institutions will provide loans quite comfortably at an attractive business loan interest rate.
Moreover, availing a loan can also help you with tax deductions.No need for any collateral:Previously none of the institutions was ready to approve the business loan unless you have a good cibil score and collateral.
Running a food truck business is a great opportunity for businessmen if they are passionate about serving the best food.In contrast to opening a restaurant, there is no need to buy or rent expensive spaces so you get to start with a small investment.Some food truck owners prefer to park their vehicles in apartment buildings, private areas, schools or company offices.
There are also a couple of food streets in large cities where you can start.Indeed, given that the threat of COVID-19 follows us everywhere, a food truck is a safer option.People can wait for food in their car's security or can queue, keeping social distance.The benefit of mobility in a food truck allows owners to access several locations.The outbreak has changed the food truck industry:vehicles no longer operate in the streets, but have changed their business strategy.
Clients hire food trucks for special events such as business meetings, weddings or shoots for films.Some also carry ads and banners for various brands, providing a different source of revenue for the owner.SETTING UP OF FOOD TRUCK Initially you should have a business plan that outlines the program for growth in future.
A description of the product : List the food offer or, specifically, provide the details of the menu.Starting a restaurant truck business will require an investment in - Truck for the businessInsurance Promotion Interior decorationIngredients for cookingDisposable itemsSystems for the process of cookingPOS software systemUniform for all staffsCertification of food safetyThere are also recurring expenses such as - Staff payrollFuelProper permits and licenses In India, the average start-up cost of a food truck business would range between 15 lakhs and 25 lakhs.It depends on what you're going to sell and the type of vehicle.To start a restaurant truck business, follow these steps - PROPER RESEARCH - You need to look up your city's food truck scene for the following Preference of taste by peopleWhat they want to eat on the run.Existing enterprises and their USPs.DemographicsPremises to sell food.Crowded offices where to find potential customers.Inquiry for the type of product you wish to sell.OPT FOR AN EXCLUSIVE DESIGN - Choose a concept that blends your unique style sensitivity with the interests of your target clients.You are required to choose a name and logo that represents your company.
The name of the company , logo , and concept should be exclusive , memorable and give a clear idea about what you are planning to deliver.An interesting concept and a well-conceived logo can encourage a passerby to become a customer.PICK THE RIGHT TRUCK - The vehicle is expected to be at least 18 feet in length, and a new one may cost between 7-8 lakhs INR.Food trucks are of various sizes and are personalised.The cost of the decor may range from Rs 1 lakh to Rs 5 lakhs.
If you want to save expenses, you can buy a used one that will be about half the price of a new one.LICENSES - Food License : FSSAI is the relevant governmental body which issues licences for all types of food enterprises.
