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Small Scale Industries

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HOW TO START A SMALL SCALE INDUSTRY The steps involved in starting a small-scale industry are:- • Conduct Market Survey and Study the products as regards their demand in the market. Check whether it is a seasonal product or it has demand throught the year 1. Study similar products available in the market that can be probable competitors. Analyze them as regards their utility, quality and cost. 2. Find whether the product can be exported. 3. Explore the possibility whether some product can be manufactured in collaboration with a foreign country. This provides readymade technical know how and save a lot of time and money otherwise wasted in developing a suitable method of manufacture. 4. Decide the product that you are going …show more content…

State financial corporation Almost every state has its own financial cooperation to provide machine and long term loans small and medium sale industries. Amount of loan varies from Rs. 5000 to Rs. 6. lakhs and these are repayable in equal installments spread over a period of 10-12 years. Important schemes of financing SFC are 1. A loan scheme for financing of village and cottage industries. Under this scheme they are financed to the extent of Rs. 25,000 and the interest rate is very low. 2. Assistance to tiny units – these grant assistance up to Rs. 2.00 lakhs. 3. Scheme for technical entrepreneur – in order to encourage self employment these corporation provide financial assistance up to Rs.2.00 lakhs at very low interest rate to such technical entrepreneurs who have acquired a diploma or degree in any discipline of engineering . 4. Loans to hotel industry 5. Scheme for SC/ST –Grant financial assistance to SC/ST entrepreneurs at a nominal margin rates are charged at the rate of 10%. 6. Scheme for physically handicapped –these provide financial assistance up to Rs. 3.00 lakhs at a rate of 10%. 7. Commercial banks: SBI and its subsidiary banks and other nationalized banks provide liberal term loans and working capital to small scale entrepreneurs and these loans are advanced for purchase of machine and material and to the technical entrepreneurs to encourage self employment. Specialized institute like, Central

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