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“FINANCE” IS THE BACKBONE OF BUSINESS “BORROWER GETS AT LEAST 17 MONTHS TIME AGAINST THE DEFAULT” “NO TRADE OR INDUSTRY CAN RUN WITHOUT FINANCE”

 
 
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“FINANCE” IS THE BACKBONE OF BUSINESS “BORROWER GETS AT LEAST 17 MONTHS TIME AGAINST THE DEFAULT” “NO TRADE OR INDUSTRY CAN RUN WITHOUT FINANCE”
by System Administrator - Thursday, 19 November 2020, 1:28 PM
 

By : M.S.Yatnatti Editor and Video Journalist Bengaluru : Finance is the backbone of business.No trade or industry can run without adequate finance.The internal resources of a business organisation are often insufficient for meeting all its needs.It is also not always possible for the owners, promoters or the entrepreneurs to mobilize finance from their own resources.Therefore promoters raise capital through borrowings, keeping in view the short term, medium term or long term requirements of the trade or industry.Every industrial project requires finance in the form of risk capital, long term, medium term and short term or working capital and/or machinery on hire purchase/lease basis. All these types of financial assistance are provided by various institutional agencies, commercial banks, co-operative banks, Regional Rural Banks, State Financial Corporations and International FinancialInstitutions and Syndicated Loan Market and NSIC etc,. A great emphasis has been placed by the government to ensure that all viable projects are provided adequate finance (Capital) for a sustained growth of trade and industry.The borrowed funds have enabled many promoters to realise their dreams and to bring their project to an actual shape. Timely availability of Institutional and bank finance at reasonable rates is essential for successful implementation of any commercial project. This requires thorough and upto date knowledge of lending schemes of various financial institutions likeIDBI, IFCI, ICICI, IRBI, SCICI, Exim Bank, Commercial Banks, RCTC, SIDBI, UTI, LIC, SFCs etc., particularly with reference to the preparation of project report, appraisal by the lending institutions, assessment of financial requirements as per RBI norms, terms and conditions on which finance is available, procedure for filing application for finance, execution of documents and charging of securities.Besides the financing has to be done as per the RBI Credit Policy & Instructions contained in its various Circulars & Committee Recommendations. Special RBI instructions have also been issued on bank finance, for Leasing & Hire purchase Concerns, Diamond Exporters, Consortium Advances, Housing Finance, Priority Sector Advances, Export Credit, Commercial papers etc.