All you need to know about types of small business finance in India

And hope that the bank will approve their application.

The reason for rejection is that banks consider small and medium sized businesses to be a high risk investment.

Private lenders are not biases against small businesses, and the criteria they have for qualifying small business loans for restaurants is a lot simpler than banks.

Just to make things simpler for small business and small business loans for restaurants, private funders such as Funding Easily do not require high credit scores and a credit score in the mid-500s will do, with no collateral, security or personal guarantees.

This is a far cry from the bank who require a minimum credit score of 700+.

In addition to the easy qualifying criteria of private lenders, the time frames for processing the restaurant business loans are also very quick.

Recognizing the importance of SME growth in the post-demonetization era, the government has started some new business loan schemes and boosted other existing ones.

Micro-units Development and Refinance Agency (MUDRA) is an organisation established by the government of India to provide business finance to micro-business units.

Since small companies and startups are often left to their own devices for financing their venture, the government has created the concept of low-cost credit to such undertakings.

However, for all credit facilities above ₹ 10 lakhs and up to ₹ 1 crore only primary security or mortgage of land and building associated with the building is obtained and such eligible accounts are covered under Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE).

Under the marketing support, funds are given to SMEs for enhancing their competitiveness and the market value of their products and services.

The technological upgradation can be related to numerous processes within the organization, such as manufacturing, marketing, supply chain etc.

Running a business requires taking measured and strategic steps to ensure its success, like taking business loans to improve and refine your products and services.

Take your business further with reliable business loans in Sydney available here at Key Strategy Solutions.

We have a full range of business loan options that you can choose from.

If you are just starting out and need that extra push to get your business out into the market, you might find our start-up loans extremely beneficial.

If you are an established business planning to diversify your assets, we also have business investment loans to direct you to the right channels.

We have lending partners who can offer multiple options for any type of loan you wish to take.

Banks and other lenders charge equal interest rates on both home loans and property loans.

However, the home loan interest rates are a few percentage points lower than the land loan interest rates.

Plot loans are generally riskier and thus priced higher than home loans, where banks have a promise that, if necessary, they can sell and recover losses quickly.