By 2020, India is expected to be the fifth largest manufacturing country in the world. Most lenders are offering attractive engineer loan at affordable rates. If you are an engineer looking for ways to fund your manufacturing business here’s how you can avail the necessary finance.
3 Ways to fund your manufacturing business.
Outside funding also known as equity funding is a process of finding investors willing to take business risks. Outsiders make investment in your business in the form of seed/ angel investments in which he/ she can buy a part of your firm. This way you share ownership and control of your company with the said investors.
Group funding also known as crowd funding is a process to pitch your business idea or project to a dedicated group of people to fund your business. Your chances of acquiring good money increases if you can convince the people your idea is ‘worth financing for’. This is a great tool for manufacturing businesses looking towards business expansion and introduction of new product line.
Professional engineer loan
Most financial institutions and NBFCs offer professional business loan to engineers at attractive rates. These are unsecured loan that means no collateral or security is to be pledged to acquire the loan. You can acquire a loan amount up to Rs. 25 lakh for a flexible tenor of 12-72 months. Its benefits include instant loan approval within 24 hours with minimum paperwork.
One of its major advantage is the flexi loan facility. It lets you withdraw as per your business need from the total loan amount sanctioned on a day-to-day basis. Interest is charged on these daily withdrawals. This makes for lower EMI and convenient repayments in the stipulated tenor.
Read More :- What Funding Is Your Manufacturing Business Missing Out On?
Aman Khanna is an experienced financial advisor who is well known for his ability to foretell the market trends as well as for his financial astuteness. He has an MBA in finance from Toronto University as well as years of experience delivering seminars on sound financial practices and debt management.