Getting Familiar: An entrepreneur wishing to set up an industry must first formulate a comprehensive plan for setting the industry for its success. For this, he/she should have confidence, enthusiasm, realism, self control, self confidence, and sense of urgency. He should therefore make himself familiar with the government policies and procedures and assistance and facilities he can get. He should know from whom and how he can get these.
Some agencies are mentioned here.
(a) Small Industries Development Bank of India (SIDBI) : Refinance and direct lending.
(b) State level Financial Corporations (SFCs), e.g. Delhi Financial Corporation (DFC), Gujarat State Financial Corporation (GSFC).
(c) National Small Industry Corporation (NSIC).
(d) Small Industry Development Corporations (SIDC) of various states.
(e) Commercial/Co-operative Banks.
(f) District Industry Centre (DIC).
(g) In addition, large term loans are also available from all Indian financial institutions such as IDBI, IFCI and ICICI.
(h) The EXIM Bank (Export Import Bank of India) and the ECGC (Export Credit and Guarantee Corporation) are Federal agencies which provide credit for export/import and exim guarantees respectively.
Some of the above organization provide monetary support on the basis of time period of lending, like short term, medium term and long term, as well on capital requirement.
An easy option of financing is available in our country called, a "single window scheme", for SSI units. Under this scheme, one agency, either the bank or the financial institution, funds both the term loan and working capital requirements.
This scheme applies to all Small Scale Industries (SSI) projects with project cost up to Rs. 50 Lakhs. The working capital loan is generally secured against Pledging of stocks, raw materials and finished goods, advances against work-in-progress (WIP), advance against bills.
To apply for loans from financial institutions and commercial banks, a formal application needs to be made. The details of documentation that need to be provided with the loan applications are described here :
(a) Balance Sheet and Profit Loss Statement for last three consecutive years of firms held by promoters,
(b) Income Tax Assessment Certificates of Partners/Directors,
(c) Proof of Possession of Land/Building,
(d) Architects estimate for construction cost,
(e) Partnership deed/Memorandum and Articles of Associations of Company,
(f) Project Report, and
(g) Budgetary Quotations of Plant and Machinery.