In this PPT, you will learn the various small business funding sources, parameters to evaluate funding readiness of a business, parameters to prepare a project report for small business financing and the paperwork required for getting a small business loan. Reach out to deAsra for help on getting a business loan at https://www.deasra.in/services/facilitation-of-loans/?utm_source=referral&utm_medium=slideshare

1. FUNDING FOR SMALL
BUSINESSES
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2. Topics
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Funding sources - Comparison
Funding Readiness
Project Report Parameters
Paperwork required for getting a loan

3. New business Existing business
Nationalized Banks 1. Margin money – 20% to 25%
2. Minimum 2 guarantors
3. CIBIL score (700 and above)
4. Collateral requirement (For high value
loans and loans not covered under
government schemes)
In addition to requirements for new business,
following additional documents are required:
1. Financial statements for the previous years
2. IT returns
Co-operative Banks 1. Margin money – 20% to 25%
2. Minimum 2 guarantors, out of which 1
should be local guarantor.
3. Will have to purchase Shares amounting
to 2.5% of the loan amount (For secured
loans)
4. CIBIL score (650 and above)
5. Collateral requirement (For high value
loans)
In addition to requirements for new business,
following additional documents are required:
1. Financial statements for the previous years
2. IT returns
NBFCs Generally don’t give loans to new businesses 1. Higher Rate of interest as compared to
Nationalized and Co-operative banks.
2. Margin money requirement may be flexible
3. Maximum loan tenure 3 years.
4. CIBIL score (650 and above)
FUNDING SOURCES COMPARITIVE CHART

4. Funding readiness – New businesses
Parameters to evaluate the funding readiness of a new business

5. Funding Readiness – Existing businesses
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Additional parameters to evaluate the funding readiness of an existing
business
Number of years in operation
Current Bank Account
Profits
IT Returns

6. Project Report Parameters
1. Cost of Project
2. Means of Finance
3. Raw material consumption/stock of goods in terms of percentage to sales
4. Yearly expenses (eg: Power & Fuel, Labour & Salary Wages, Repairs, etc.)
5. No. of months of Moratorium period/ start up period needed for the term loan
6. Other sources of income (eg: interest, dividend, royalties, etc.)
7. Variable Costs
8. Fixed Assets needed to be purchased
9. Space Deposit
10. Entire Start-Up Cost

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Paperwork required for getting a loan
1. KYC documents
2. Place of business – Sale deed/registered rent agreement
3. Form 16
4. Income Tax returns of applicant for 3 years
5. Latest Bank Statement for 1 year
6. Quotations of machinery, vehicle, etc.
7. Details of Collateral security
8. Documents and details of Guarantor
9. Bankable project report

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To download free checklists visit our website:
https://www.deasra.in/msme-checklist/

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10. Funding readiness exercise
https://www.deasra.in/tools/deasra-funding-readiness/

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deAsra ServicesdeAsra Services

12. Need our Assistance? Connect with us.
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To avail any deAsra services today,
please approach our appointment desk before you leave.
We would be happy to help!
8669985599
team@deasra.co.inwww.deasra.in
www.twitter.com/deAsra_FDN www.facebook.com/deAsra/

13. Thank You
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