Khadi and Village Industries Commission (KVIC)

Overview:

KVIC is a statutory body formed by the Government of India under the KVIC Act of 1956 that aims to nurse employment and economic uplift in rural India. The term Khadi goes back to the Swadeshi Movement launched by Mahatma Gandhi in 1920 by propagating the use of hand-woven and home-spun fabrics. It was a form of protest to shun British goods and the simplicity of the method was remarkable. Khadi is a hand- made cloth using the simple charkha, an implement common in rural India.

KVIC full form is Khadi and Village Industries Commission constituted as an apex body under the Ministry of Micro, Small and Medium Enterprises to help plan, promote, facilitate, organize and aid in the development of Khadi and Village Industries in rural India in conjunction with other agencies involved in rural development.

Structure of KVIC:

The headquarters of KVIC is located in New Delhi and its six Zonal Offices are spread in a few main cities of India at:

  1. New Delhi.
  2. Bhopal
  3. Bengaluru
  4. Kolkata
  5. Mumbai
  6. Guwahati

Further to the zonal offices, there 29 other offices in different states to oversee the implementation of different programs in alignment with the objectives of the commission.

KVIC Terminology:

It is imperative to get a greater insight into the common terms in use for a comprehensive understanding of the entire KVIC scheme.

1. Khadi: Originating as a political weapon in the Swadeshi Movement, it literally denotes hand-woven or hand-spun fabric by using the common charkha or wheel. The common raw materials used are cotton, silk, wool and synthetic ploy. The usual source area of the fabric in India are:

  • Cotton: Andhra Pradesh, Uttar Pradesh, Bihar and West Bengal.
  • Silk: West Bengal, Bihar, Odisha and North Eastern States.
  • Wool: Haryana, Himachal Pradesh, Jammu and Kashmir.
  • Poly: Gujarat, Rajasthan.

2. Village Industry: It denotes any industry that is located in the rural area using a fixed capital investment per artisan or weaver not exceeding Rs.1 lakh.

KVIC Scheme Details:

There are a host of schemes under the KVIC scheme list aimed at achieving the objectives set for the commission.

1. KVIC PMEGP:

The scheme was launched by replacing The Rural Employment Generation Program (REGP) and the Pradhan Mantri Rozgar Yojana (PMRY) by the Ministry of MSME. The Prime Minister’s Employment Generation Program (PMEGP) is basically a credit-linked subsidy program aimed at creating employment opportunities across all areas of the country.

2. Interest Subsidy Eligibility Certificate (ISEC):

It is designed to be the major source for KVIC Projects involving the institutions registered with KVIC. It mobilizes funds from the banking institutions to bridge the funding gap in relation to budgetary allocations.

3. Scheme of Fund for Regeneration of Traditional Industries (SFURTI):

It aims to promote cluster development involving Khadi and Village Industry products. The nodal agency for implementation of the scheme is KVIC.

4. Market Promotion Development Assistance (MPDA):

It aims to augment the income of the artisans. The distribution of assistance is in the ratio of:

  • Artisans: 40%
  • Producer: 40%
  • Seller: 20%

5. Khadi Reform and Development Program (KRDP):

The prime objective of this scheme is employment generation and the enhanced earning of the artisans. It aids repositioning of the Khadi in alignment with the current needs.

Features of KVIC Loan:

The loans under the commission are routed through and governed by PMEGP guidelines. The financial assistance is based on various criteria related primarily to MSME specifications as under:

1. Quantum of Loan:

  • Manufacturing Sector: Maximum Rs.25lakhs.
  • Business and Service Sector: Maximum Rs.10 lakhs.

2. Per capita investment cap:

  • Plains: Rs.1 lakh.
  • Hills: Rs.1.5 lakhs.

3. Funding Pattern:

The following grid is indicative of the funding pattern defined in KVIC loan components. It is to be importantly noted that the special category includes the reserved, minorities, women, ex-servicemen, disabled, northeast, border areas among others.

Category

Beneficiary contribution

Rate of subsidy

Urban

Rural

General

10% 15% 25%
Special 5% 25%

35%

 

4. KVIC Loan tenure: The normal tenor of the loans provided under the scheme is 3 to 7 years inclusive of a moratorium of 6 months.

5. Margin Money: It is kept in a separate SB account with a lock-in of 3 years but adjusted with the KVIC loan.

6. Income Ceiling:  There are no income ceilings under the KVIC loan, but only that the loan is provided for new ventures and the borrower must not have enjoyed any other loan.

Eligibility Criteria for Khadi and Village Industries Commission Loan:

PMEGP loans are disbursed to both individuals and organizations that meet the eligibility criteria.

1. Individuals above 18 years of age and have passed minimum class eight:

  • Manufacturing Unit: Rs.10 lakhs.
  • Service Unit: Rs.5 lakh.

2. Self Help Groups provided they have not taken any other loan.

3. Registered Societies.

4. Producer Co-operative Societies.

5. Charitable Trusts.

6. Loan Eligible Sectors: As per the norms of the KVIC scheme, the loan is extended to only a few sectors as under:

  • Food processing (Agro-based).
  • Hand-made fibers and paper.
  • Mineral Products.
  • Polymer and chemical products.
  • Forest products.
  • Rural engineering.
  • Biotechnology.
  • Service and textiles.

Documents Required for KVIC Loan:

There are a host of documents that are essential for KVIC online application.

  • Various KYC documents of the borrowers.
  • Caste or community certificate to determine eligibility in one of the specific categories.
  • Subsidy claim as per eligibility.
  • Certified copy bye-laws of the society or association.
  • Copy of rent or lease deed for the premises or shed which is not more than 3 years old.
  • The project report specifying the cost with the break-up of capital expenditure and working capital requirement for 1 cycle.
  • If there is no need for working capital, a certificate to that effect from the controlling office of the bank.

Rate of Interest applied in KVIV Loan:

The rate of interest applicable to PMEGP loan and KVIC is at the normal rate applicable to MSME enterprises. Presently, the rate charged by most banks is in the range of 11 and 12%. However, the rate under ISEC is 4%. The shortfall of this concessional rate and the actual chargeable is met by the commission through the “Grants” head of the budget. This facility is extended only to makers of Khadi and Polyvastra.

Government Loan Schemes for Small Businesses in India

KVIC Online Application:

The portal of KVIC – http://www.kvic.org.in provides a digital interface for online application: https://www.kviconline.gov.in/pmegpeportal/jsp/pmegponline.jsp. It is an elaborate and comprehensive procedure seeking all personal details including aadhaar, date of birth, qualifications, special category details, location of the unit, operational details, loan and bank particulars etc. After saving the application, the digitized format of the application has to be uploaded. After final submission, the application ID and password for future use is transmitted to the registered mobile number.

KVIC FAQs:

1. What are the primary KVIC Objectives?

The commission was formed with a strong bias towards the principles of swadeshi that has been one of the major thrust principles in our freedom movement. In fact, Mahatma Gandhi has likened Khadi to the livery of freedom. Being rooted in the Indian ethos, the objectives of KVIC can be broadly summarized into three basic principles as under:

  • Social Objective: It is aimed to be achieved by providing the scope of employment in the rural.
  • Economic Objective: Aiming to produce easily saleable articles.
  • Greater Objective: The primary aim of the first two is qualified in the third by inculcating a strong sense of community in the rural masses and engendering the spirit of self-reliance among them.

2. How is the KVIC Functions defined?

In order to achieve the objectives set for the commission, there is a strong need to implement and monitor the schemes effectively. The various programs designed for the commission, encompasses the functions of KVIC.

  • Creation of a reserve of raw materials and implements to maintain a continuous supply flow to producers.
  • Form common community service facilities to process raw materials into semi-finished goods.
  • Promote and facilitate the sale and distribution of Khadi and Village Industry products inclusive of handicrafts.
  • Promote research to improve upon the production techniques and equipment to benefit the village industry sector at large.
  • Provide financial assistance and technical know-how to individuals and institutions to develop the Khadi and Village Industry

3. What is the meaning of Khadi Gram Udyog?

It is the marketing arm of KVIC which markets the products manufactured in the rural industries under the aegis of KVIC. The name khadi itself is a fabric sourced from different regions of the country where the raw material is abundantly found. There are also a host of Khadi natural handmade personal care products manufactured at Uttarakhand Khadi Products. The best part is that the products are also available online in keeping the trends at the Khadi Shop.

4. What are the activities not covered by KVIC loan?

Most of the harmful; activities like meat and slaughterhouses, tobacco products, eateries serving liquor, cultivation of cash crops among the indicative few. The activities stated are not exhaustive.

5. Is the rent and cost of land included in the project cost?

The cost of lease and rent if not older than 3 years can be included, whereas there is a bar on the inclusion of the cost of land in the project cost.

Bottom Line:

Employment generation and boosting the labor-intensive rural economy is the major objective of KVIC, most of the NBFCs other than the ones who enjoy good penetration in the country do not figure in the scheme of things pertaining to the commission. Lendingkart a non-deposit seeking NBFC occupies a significant position in the lending sector in the country with ample scope.

To apply for a business loan with Lendingkart in 3 simple steps, visit us at www.lendingkart.com.

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How to Check and Improve CIBIL Credit Score for Business Loan?

How to Check and Improve CIBIL Score/Credit Score for Business Loan?

Banks and other financial institutions rely heavily on the CIBIL Transunion Score of a person to judge his/her creditworthiness, based on which the credit is disbursed to the borrower. The score typically ranges between 300 to a higher limit of 900. A score that is high on the scale indicates higher chances of your loan application getting accepted. On the other hand, a low score signifies a poor history which includes delayed/defaulted credit repayments, thus the odds are against the loan/credit card application getting accepted.

This article is a comprehensive guide on how to check and improve CIBIL score for business loan.

Why is CIBIL Score/Credit Score Important?

CIBIL scores act as a parameter on which credit institutions check the borrower’s creditworthiness when he/she applies for a loan. Whether the institution sanctions the loan or not is determined by the individual’s CIBIL score. Any individual with a higher CIBIL score stands a fair chance of getting a higher amount of loan, longer tenure of repayment, better rates of interest and quick approval of the business loan.

Determinants of CIBIL Score

The factors which determine the CIBIL score of any individual are listed as below:

1. Credit history of the borrower:

The credit history of the borrower is given the highest weightage to in determining his/her CIBIL score. The behavior of the individual when dealing with debt obligations are taken note of. Thus, an individual who has a history of delay or defaults in debt payments will get a low CIBIL score. On the other hand, if the individual has been careful enough not to have defaulted on his/her debt repayments, the CIBIL score is likely to higher.

2. Credit mix and duration of the credit taken:

The proportion to which an individual’s portfolio consists of secured and unsecured loans determines one’s CIBIL score. In case the individual services long term debt correctly and responsibly, they shall rank higher with the credit score.

3. Multiple Loan Application:

Each time you apply for a credit from a bank or any other financial institution, the concerned agency runs an inquiry on your CIBIL report. Too many enquiries within a short span of time can impact ones CIBIL score negatively.

4. Credit Utilization Limit:

Having a high credit utilization limit shall not aid an individual’s CIBIL score as failure to maintain a low credit utilization limit over time reflects that the borrower cannot successfully mitigate the credit burden.

5. Other factors:

There are several other factors such as an increase in credit limit, not checking credit report, recent credit behaviors and credit exposure of the individual contributes to determining the credit score of the borrower.

Decoding Various CIBIL Scores

The table below neatly elaborates the CIBIL score ranges and what they mean for a borrower:

Score

Comment

Meaning

850-900

Excellent CIBIL Score No past history of delay or default in payment. Loan applications easily approved.

750-850

Above Average CIBIL Score Nearly 80% of the loan applications are most likely to be approved.

700-750

Average CIBIL Score The borrower may easily avail secured loans. The individual has to go through inspection from the bank to access his/her creditworthiness in when applying for an unsecured loan.

500-700

Below Average CIBIL Score The individual may have defaulted on his/her repayments. Personal loans would be a tough ask for anyone whose CIBIL score falls in this range.

300-500

Poor Credit Score Having a credit score in this range reflects various discrepancies in handling credit. It would be difficult for the individual to take up a credit from any bank/financial institution in the country unless the score is improved.

How to Check Your CIBIL Score/Credit Score?

You can check your CIBIL score/Credit Score online for free at any time by visiting the website page: https://www.cibil.com/freecibilscore. Create an account with the website by putting in your basic details such as username, password, email ID, and phone number. Then verify your identity by punching in your PAN Card and Aadhaar Card number. Once done, you shall receive a one-time password (OTP) on your smartphone that you will need to enter online, and you shall receive your CIBIL score report the next moment.

How to Improve the CIBIL Score/Credit Score?

A score that ranks higher on the range of CIBIL score is good enough for your loan applications to get approved easily. Additionally, the borrower gets benefits such as lower interest rate, more authority for negotiations, higher approval limits and exciting offers on credit.

Some methods which one may employ in order to improve their CIBIL score are as follows:

  • Defaulting on payments is a strict no-no. One must ensure to make the payments on time and avoid credit repayment defaults.
  • Lower credit usage helps with CIBIL score. The borrower must lower their credit usage to 50% of the limit.
  • Do not apply for multiple loans within a short span of time
  • Make sure your credit portfolio has the right credit mix. Use a perfect proportion of secured and unsecured loans to ensure the same.
  • Make sure your credit report reflects the correct information.

FAQs?

  1. How much time does it take for an individual’s CIBIL score to improve?

On an average, it may take between 4-12 months for the credit score to improve/change according to the borrower behaviors with recent credit.

  1. What is “NA” or “NH” in CIBIL Score?

NA or NH in relation to CIBIL score may signify that the borrower does not have enoughcredit history or there has been little to no credit activity in the last couple of months.

  1. Can I check my CIBIL Score for free?

Yes. There are various websites online which allow the borrower to check their CIBIL score for free.

  1. What are the additional benefits of having a high CIBIL score?

Landing a high CIBIL score shall indicate a higher borrowing limit, a lower rate of interest, more discounts on credit and various other benefits.

Read More:

Can Business Loan affect your Personal Credit Score?

Maintaining a Credit Score for a SME/MSME

Tips to Increase Your Small or Medium Business Credit Score

CIBIL Score for Business Loan – Check Minimum Credit Score

Minimum CIBIL Score for Business Loan

Businesses require huge amounts of money. Risk-taking entrepreneurs stake their lives and careers on the line to start companies. These businesses and the job opportunities they introduce to the economy are part of the economic lifecycle. Loans fuel such businesses and good loans with attractive interest rates enable people in business to engage in healthy economic trading. But not everyone is positioned to get good loans.

Business loans are available for these risk-taking individuals, but many of them don’t even know where to start.

The Credit Information Bureau of India Limited, or CIBIL, is the oldest function of the Reserve Bank of India to disperse credit information to banks and financial institutions.

What are CIBIL scores and CIBIL ranks?

To assess the credibility of a person or business, the payment history of the individual or business is gauged and quantified into a 3 digit number known as the CIBIL score.

CIBIL Score

Meaning

850 to 900

Excellent score. Perfect score for loan approval.

750 to 850

80% chance of loan approval.

700 to 750

Good for secured loans. Unsecured loans may require more checks by the bank.

500 to 700

Personal loans may be difficult to get. Interest rates will be higher.

300 to 500

Close to impossible to obtain any loans.

Your CIBIL Company Credit Report, or CCR, is a record of payment history compiled from multiple institutions. These are regarded as reputational collaterals. For your CIBIL rank, it ranges from 1 to 10. The closer the score to 1, the better the probability of securing a loan. A score of 10 means a heaping pile of trouble. Bear in mind, a CIBIL score is applicable to individuals seeking loans. CCR is the term that is applicable to businesses seeking loans.

Now that you are familiar with what a CIBIL score for business loan and rank are, and where on its spectrum you would like to be, it is time to understand what brings down your score and what brings it up. Bringing up your CIBIL score for business loan.

Putting it simply, the better your history in dealing with past credits and loans, the better your CIBIL score for business loan will be.

What affects your CIBIL score?

You score has nothing whatsoever to do with the following:

  • Investment account information
  • Savings held in the past
  • Fixed deposit accounts
  • Trading accounts
  • Current account
  • Savings account
  • Investment accounts
  • Your education level
  • Your annual income
  • Your gender
  • Your race
  • Your ethnicity

Your score is ONLY considered based on the following:

Factor

Weightage

Your credit history

30% weightage

Utilization of credit

25% weightage
Credit duration and mix

25% weightage

Misc factors

25% weightage

The score generated by the TransUnion CIBIL authority is the only indicator of your score. Each credit bureau uses its own specialised scoring methodology that has nothing to do with CIBIL, so don’t be confused by multiple credit bureaus. The TransUnion CIBIL agency is the one you want.

How are scores checked?

Checking your score is important, and keeping up with your payment history will allow you to do that. However, there are times when checking can hurt your actual score! So how do you avoid this?

  • Soft checks
  • Hard checks

Soft inquiries do not hurt your score. Soft inquiries are when an enquiry is requested by:

  • Credit bureaus
  • Third party authorised institutes

An infinite amount of these checks are okay and do nothing to affect your score.

However, when a request is made by institutes such as:

  • Banks
  • Credit card companies
  • Various creditors

Your score undergoes damage. This is called a hard enquiry, and you must avoid them as much as possible.

However, please don’t worry if this seems too complicated. You are entitled to a free credit report annually by the TransUnion CIBIL authority, so make sure to keep that in mind. The first one is free, but you are charged for any further reports in a year.

There are no fast and easy shortcuts to this, however. Keep in mind that your financial behaviour for the duration of 6-12 months is analysed before arriving at your score. So the only way to improve your score is through actual perseverance, dedication and hard work.

How to improve your credit score?

Let’s explore some of the methods of improving your score.

1. Focus on your credit utilisation

Utilisation here means how much you use of the credit limit you have on your card. Surpassing 40% of your limit shows that you have a high need for credit and raises the possibility that this high usage of credit means possible defaulting in future. Get another card and spread out your credit utilisation. Never surpass 30% to be safe.  40% is the upper cutoff. The ones that don’t need money are often the ones that are granted money. Also, here you can take measures to increase your credit limit so that you will never surpass 30% as well.

2. Outstanding balance

Just paying the minimum is a terrible way to increase your score. Pay off the unpaid balance as soon as possible, and pay off the entire balance at that.

The facts that your balance is carrying over to the next month is an indicator that you are unable to pay your debts fully and on time, and this hurts your score. Do whatever you can to lawfully pay off the balance to see your numbers start improving. Seek assistance from benevolent friends and family and other resources you have.

3. New credit applications

For the next year, don’t apply for any new loans. Loan thirsty individuals are seen in a negative light. Each loan mandates a recheck of your CIBIL score, and this counts as a hard check. As discussed before, you want to avoid hard checks at all costs.

The Bottom Line:

So there you have it. Bear in mind, even if you do happen to have a low score, don’t fret too much. You might still get a loan, albeit at a higher interest rate. These measures simply ensure you the best position to seek loans. Keeping these facts in mind will allow you to gain control over your CIBIL rank/score and allow you to nurture and grow your business into an indispensable part of the economy one day.

CIBIL Score for Business Loan FAQs:

1. What does NA or NH denote in my CIBIL score for business loan?

NA and NH signify that you might not have a credit history to be assigned a score. You either have no credit card activity in the past couple of years or are lacking credit card exposure.

2. Can CIBIL change or delete my records?

No. CIBIL does not have the power to delete your records on their own.

3. Is there a defaulter list for CIBIL?

CIBIL does not possess or maintain a list of defaulters.

4. What is CIBIL 2.0?

CIBIL 2.0 is the latest in measuring CIBIL scores. It has been created with changing industry trends in mind. Your scores in the 2.0 system varies from the scores given in the 1.0 system.

Read More:

Maintaining a Credit Score for a SME

Tips to Increase Your Small or Medium Business’s Credit Score

How to Get a Small Business Loan Without Collateral?

When starting a business or an organisation, funds are required, and for that loan is necessary. So it is important to get a business loan, but it requires some formalities. For getting loan some sort of security is given in order for a refund, but some loans require no collateral which we will discuss here. There are two kinds of loans; secured and unsecured. Some require an asset as security, and some do not. If one wants the loan for buying a home, then, in this case, your home acts as a collateral. But if one is looking for the loan that needs no collateral, then it requires some long process and time.

Some tips to get a business loan without collateral:

1. SBA Loans:

This loan is one of the most affordable loans that require no collateral but is the most popular loan option. These loans have some strict eligibility requirements and require some time to process, but this type of loan every businessperson should consider.

2. Online Term Loans:

These loans are of two types one is short term loans and then long-term loans. In long term loans, there is a set amount of advance payment done that the borrower can repay monthly with an extended period. They are not as much affordable as the SBA loans, but then also they are easier and take less time.

Short term loans are a little expensive and paid as daily or weekly payments over a short period. These are business loans without collateral that are popular.

3. Merchant Cash Advance:

This type of loan might seem to require collateral, but in this case, the financing company just purchases your future assets. In this type of loan, the company pays you to advance payment, and you have to pay back with some per cent of daily card sales. These are some sort of expensive financing option that one can find and get a loan for their organisation.

4. Business Credit Card

This loan option is everyone familiar with, and it is the supplement to traditional loan practice that one can take up for their business. It is with a 0% APR card and interest-free loan for some time.

5. Private Lenders and Small Firms

These are also the way to get a small business loan and may not require a collateral.

6. Opening a Franchise

You can open a franchise if you want a business loan because banks like to finance the franchise that has brand value, so this is one thing that one can do.

7. Some other ways to borrow loan without collateral:

If you don’t want to take the loan using the above methods, then there are many more ways by which one can take the loan without offering security or collateral.

Here are some tips:

1. Researching the market carefully

You can research the market carefully and then get the loan with some low-interest rate. Doing market research is very important, and it will surely help to find a way to get a business loan without collateral.

2. Improving credit score

It means to reduce your credit card balance and pay the supplier more, which will help you in getting a small business loan easily without requiring collateral.

Small Business Loan Without Collateral FAQs:

1. What are the documents required while applying for a business loan?

Some entities required are Photo ID like the pan card, address proof, last two years financial balance sheet, last six months bank statement, existing loan track record. But some additional documents may be required.

2. How to pay business loan repayment?

For this, the customer needs to give PDCs (Post-dated cheque) and sign an ECS in favour of the bank account.

3. What is the duration of the loan?

The duration of the loan can range from month to 3 years.

So obtaining an unsecured loan from a non-bank lender can be easy and fast but is expensive as compared to traditional bank rates. It is very important to meet the criteria for the bank loan. Some people who want long term loans spend lots of hours on preparing documents just to apply for a conventional loan for funding their business while some don’t like to spend time on this. It varies for all kinds of business owners and their way of the method.

What Happens When You Default on a Business Loan? Plus, How to Avoid It

What Happens If You Default on An Unsecured Business Loan in India

Every entrepreneur, at some point, considers or already has taken a business loan. Everyone has the best intentions of paying back the loan. However, due to situations like a sudden decline in sales, miscalculations, or other unforeseeable circumstances, your finances take a hit, and you do not make your monthly instalments on time. This could cause you to default on your business loan.

Definition of loan default:

In simple words, a loan default happens when a borrower breaches a decided term of the loan agreement. Generally, this occurs when a borrower does not make the agreed upon instalment payments. This results in the lender resorting to legal action against the borrower.

Results of defaulting on a business loan?

The repercussions vary as per the terms and conditions of the business agreement. They may also affect your credit score. Below is a list of consequences of defaulting on your business loan.

1. Drop in credit score

Every time you miss an instalment, the lender reports you to credit agencies. This leads to a drop in your credit scores, which jeopardizes your chance of being approved for any loan in the future.

2. Increased rate of interest

Once your credit score drops, depending on your business loan agreement, your interest rates will increase, or you will be charged an exorbitant late fee. This will affect your current loan repayment and possible future loan approvals.

3. Legal Action or foreclosure

In case of a business loan default, depending on whether you have applied for a secured or unsecured loan, the consequences vary. In a secured loan, a foreclosure will allow the lender complete authority of all your assets and properties mentioned as collateral in your loan agreement. Generally, they sell the collateral in a private or public auction to recover their losses.

In the case of an unsecured loan, the lender generally charges you a late fee. However, even in the case of an unsecured loan, the lender requires a personal guarantee or a lien to your business assets. Therefore, on further failure, the lender can file a lawsuit against your business.

4. Difficulty in getting approved for loans in the future

Once you default on a loan coupled with bad credit score, it is extremely difficult to procure any loan in the future. You will have to look for alternative ways to fund your business.

5. Declaring bankruptcy

If you default on your loan, the lender will start legal proceedings in order to recover the loan amount. In case of secured loans, the collateral will be seized. For unsecured loans, as discussed earlier, lenders will sue you for defaulting on the loan. As per the courts ordered method, the loan will be recovered. However, if the lender is still not able to recover the loan amount, then your business may have to file for bankruptcy.

As seen above, defaulting on your business loan has adverse long-term and short-term effects. There are numerous available options in case you are finding it difficult to repay your loan. Below are a few pointers that would prevent you from defaulting on your business loan.

6. Maintain sufficient balance

Always maintain a sufficient balance in your bank account to avoid missing loan payments. A business is always subject to volatile market conditions. Therefore, it is advisable to allow yourself some headroom. Maintain a reserve of at least 3 months’ worth of repayment in your account.

7. Be aware of your dates

Always know the due dates of your instalments. It ensures that you have the required amount in your account. Also, it helps you plan your finances better incase of other expenses incurred in your business or other loans. Even if you miss an instalment, it does not immediately make you a defaulter. However, it may result in late fines.

8. Refinance

Short-term loans tend to kill the momentum of upcoming businesses. This is a very common issue. Therefore, there are numerous lenders that will help you refinance your debt. These companies provide you with longer terms and smaller instalments. However, this is only a precautionary measure and not the solution.

9. Communicate with your lender

In case you feel that paying the instalment is going to be difficult in the next couple of months, talk to your lender. It is unwise to sit around and risk defaulting on your loan. Your lender may appreciate your proactiveness in managing your debt and help you by either reducing your monthly payments or extending your term.

10. Reschedule your debt

If the amount of outgo of your company is the issue, you can always reschedule your finances. Your lender will revise your interest rates, and the loan tenure will be increased. This means that the amount of monthly instalment will reduce and make things more manageable. However, this will still hurt your credit score, but it is better than defaulting on your loan.

11. Manage expenses and prioritize debt

This could seem like simple advice but is the building block of efficient financial planning. In the initial years of your business, ensure that there are only necessary expenses. Paying out your debt should be your priority. There is no escape from monthly payments; therefore, ensure that all your other expenses are secondary to it. Further, borrow only what you need. A business loan incurs monthly payments and interests. This makes surplus debt liability to your business.

12. Seek legal assistance

If push comes to shove and you see no way out of from defaulting on your loan, seek legal advice to know what rights you have and what provisions you can access in your situation.

Conclusion

When it comes to debt management, always ensure that you are never behind on your payment. After that, if you still think you are going to default on your loan, doing nothing is not an option. You are responsible for the repayment of your debts in a way that secures your business.

LendingKart is your one-stop solution for all types of loans. Our unsecured business loan can be procured on the go.

Apart from prompt procedures, we offer attractive business loan rates

SME Loan Application

Conditions

Interest rate

1% –2%*

One-time Processing Charge

2% of the loan

Loan Amount

Rs. 50,000–Rs. 1 Crore

Duration of loan

1 month to 1 year

Pre-closure fee

NA**

Part Prepayment fee

NA

*depends on your credit history and business

**Pre-closures are done only after the first instalment has been paid in full

Business Loan Default Faqs:

1. What is a personal guarantee?

It is an unsecured written undertaking from the borrower to the lender guaranteeing timely payment of the loan.

2. Can I secure a business loan with a guarantor?

It is difficult to secure a business loan without any asset to place as collateral. However, banks do allow you to borrow 100% of the loan without a deposit if you have a guarantor.

Difference Between Working Capital Loan and Term Loan

Working Capital Loan vs Term Loan

This is a question that many businesses will face in their lifetime, sometimes even more than just once. The need for financial support may come up a lot when you’re in the business world, so you need to set your financial sources straight and know what’s your best option for getting the funds you need. And, these term loans and working capital loans are the main factors that you need to think about when making your decision. There are a couple of differences between them, so here is all the important information you need before making the final decision.

Working Capital Loans

Working capital is a really important funding source for businesses. The working capital for them is the immediate cash they receive for the daily expenditures that the business encounters. Usually, the need for working capital shows up when businesses have to pay the monthly rent, or pay the salaries to the employees or cover some seasonal demands that have shown up in the last minute. The assistance they get from these types of external funding sources helps them to get back on track and continue with their work. A type of assistance that you can get for working capital is a working capital loan.

You need to know that you cannot use the working capital loan for new investment, to start a new project or expand the business that you already have. These are liquid loans with a short term. The period for which these loans are given is usually a year or less.

The positive side is that they are really easy to get, especially in situations where your credit score is at a good level. The paperwork is not huge since it’s a short-term loan. But, the interest rates are high.

You can use a loan calculator to estimate the requirements for working capital. The calculator will help you to analyse the inventory that has been built up, to add all of the cash that you already owe and also take in consideration the amount that you are supposed to pay to the suppliers. This helps in easier repayment of the loan that is taken.

Working capital loans, in comparison with terms loans, are relatively easier to get, especially with a good credit score. A working capital improvement is the main goal of such loans.

Term Loans

Term loans, as the name suggests, are loans that take more time, from one to ten years. These term loans are taken when you need funds for larger investments, for expansion of your business or for purchasing new machinery or tools. These loans usually involve higher sums of money than the working capital loan, and this is the reason why they are paid off during a longer period.

We mentioned that the interest rates for working capital loans are high, and this can lead people to think that it’s an expensive loan. But, with the term loans, the interest rates keep growing with the years, so in the end, you pay more in interest for the term loans when compared to working capital loans.

You have a business loan calculator which can help you in estimating the total of the repayment, along with the interest and the principal.

Because this is a long-term loan, it requires a lot of paperwork and many procedures. So, it’s not that easy to get it. Financial institutions need to check everything before approving or denying the loan request.

What’s checked?

  • Bank statements
  • Market reputation
  • Ability to repay
  • Creditworthiness
  • Collateral

The success of your business depends a lot on the funds that you use and how you tailor those funds to suit your environment. Deciding on which type of funding to get will mostly depend on what exactly your requirements will be.

When to get Working Capital loans

When to get Term Loans

  • Meet immediate financial demands
  • Pay off small amounts
  • Thinking about expansion
  • Business modification
  • Starting a new project

FAQs

1. What is a working capital loan?

Working capital loan is a loan that helps a company to fund the everyday operations. This capital covers short-term financial needs.

2. What is an example of a term loan?

A bank loan with varying interest rates, taken for starting new ventures, new projects or business expansion is a term loan. This loan needs to be paid in a certain amount of time.

3. How many business days after you submit your application will you receive a loan estimate form?

Usually, it takes up to 3 business days.

How to Get a Small Business Loan for a Startup

Small Business Loan to Start a Business

For a new entrepreneur, one of the biggest hurdles to resolve and overcome is the need for capital. Funds are critical to any business venture. Finding ways to raise money can sometimes become a full-time occupation for a business owner. A business loan can be a very important supplement to the lifeblood of a company.

There are many ways that startup capital can be raised. There is the option of:

  1. Going for a bank (most bank offer small business loans these days)
  2. Exploring and applying to non-banking financial institutions
  3. Using alternative methods such as crowd funding
  4. Approaching angel investors and venture capitalists

For most new businesses the preferred method, out of above, is to apply for loans with banks and other alternative lending institutions.

Eligibility for Startup Business Loan:

While a business loan can be applied for with a government or private bank or with non-banking financial companies, there are some basic eligibility requirements which need to be met. These requirements vary from institution to institution. For example, government loan schemes often have stringent requirements and do no offer the best business loans for new businesses. Since these schemes are typically refinanced by public and private sector banks, the process is slow and full of hassles. On the other hand, NBFCs have startup loan schemes which offer instant business loans with personalized terms. To get a startup business loan from an NBFC like Lendingkart, you need to meet the following eligibility requirements.

  • An established business that has been running for more than 6 months.
  • A minimum turnover of ₹ 90,000 or more in the past 3 months.
  • The type of business should not be categorized under the blacklisted/excluded list for SBA finance.
  • The physical location of the enterprise should not be in the negative location list.
  • The business should not be a trust, NGO or charitable institution.

How to Get a Small Business Loan to Start a Business

As a startup or a business idea in a nascent stage, the best bet to raise funds lies in non-banking financial institutions. It’s recommended to direct one’s energies towards acquiring capital from alternative lenders rather than traditional banks.

Most banks prefer to give loans to small businesses that are already in existence as opposed to someone who is just starting out. Banks prefer to cover risk and it’s for this reason that the documentation and evaluation processes are long drawn and rather stringent. For a new business, sometimes it can be difficult to meet all the requirements. This greatly affects the chances of getting the loan approved.

Startup Business Loan Interest Rate

Interest rates are one of the major concerns for a small business owner applying for a business loan. Higher interest rates can raise Both the total repayable amount and the money you pay in each EMI. Since most small businesses are operating at very thin to non-existent margins, high interest rates on business loans can be a major deterring factor for them. In extreme cases, not having access to institutional finance can ultimately cause a startup to cease operations.

Now it is an established fact that startup business loans without collateral have higher interest rates due to the increased risk of default for a lender. However, not every startup owner has significant personal or business assets to collateralize. In such cases, FinTech lenders like Lendingkart Finance can help a startup to lower interest rates on a business loan. Since, FinTech firms operate online, they are able to save money that would go in man-hours. These savings are passed onto the customers in the form of lower interest rates. With Lendingkart, you can get interest rates which are customized for your business’s financial profile.

Document & Requirements for Startup Business Loan

The documents required for getting a loan for startup business also vary from lender to lender. Where a traditional bank or government business loan scheme relies heavily on documentation, a FinTech lender relies on the relevant business and KYC documents instead of asking for unnecessary paperwork. Here again, citing the example of the NBFC, Lendingkart Finance, we are sharing a basic list of documents required for startup loans.

  • Bank statement for the last 6 to 12 months.
  • Proof of business registration such as business registration certificate, GST filing, Gumastadhara, trade license, drug license, TIN or VAT registration.
  • Copy of proprietor’s PAN Card.
  • Copy of proprietor’s Aadhar Card.
  • Copy of the Partnership Deed (if applicable).
  • Copy of the company PAN Card.

All these documents are required in the digital format as Lendingkart’s business loan application process in online ‘only’.

Coming to the benefits of applying for business loans with alternative lenders. They make the process rather hassle-free and easy to get through. Some of the advantages that non-financial banking institutions offer are:

  1. Slightly more flexible requirements and eligibility criteria
  2. Possibility of applying online very quickly
  3. Quick turnaround time on loan approvals
  4. Instant loan disbursement after approvals

Amongst all these the leniency on the eligibility criteria as well as requirements are the most beneficial.

It is helpful to have lenders who will be willing to consider giving out money to owners who may not have a detailed and long credit history. Your top pick should be lenders who focus on your business idea and go-to-market strategy rather than those who focus on cash flow history. Armed with a solid a dynamic business plan, the loan can be applied for still.

Process to get a Small Business Loan to Start a Business

There are different types of business loans available and depending upon the requirement of the business, a relevant one can be sought and applied for. Some popular options of business loan include working capital loans, startup loans, cash advance loans etc.

The first step is to determine how much money is needed and what it is needed for. This will go into the business plan that will be evaluated during the loan approval process.

Once the amount has been determined, the next step is to do some research and seek out the available options in terms of lenders in the market. Choosing a lender is also a process that requires time and effort. Things like credibility of the lender (reputation in the market), interest rate being offered, support system on offer, options of how loans can be re-paid, process of loan application etc. need to be factored in before choosing the one(s) which would be applied for.

Once identified, the next step is to get all the required documentation ready and up to the mark. A great business plan which details out information about the business idea, the profitability of the idea, the scaling plan, the vision behind the idea, projections regarding staff and infrastructure as well as the marketing strategy. A clear and transparent business plan goes a long way in putting the odds in the favorable position.

The final step is to apply and go through the process.

As mentioned, the turnaround time with non-banking financial institutions is rather quick and if all is okay, the loan should come through within a fortnight or less.

Of course, if you have a business that is already 6 months old or more and has a revenue of INR 12 lakhs or more, you can always apply for a working capital loan at Lendingkart! They have a minimum turnaround time of 3 days for eligible businesses.

How to use a Startup Business Loan

The benefits of getting a startup business loans are numerous. You can utilize the money for purposes like business expansion, restocking inventory, working capital management etc.

Startup business loans from NBFCs like Lendingkart give you enough money to invest in multiple things in one go. They have a ticket value which can go up to ₹ 2 crore, helping you launch projects at a faster pace and get into the profit zone.

However, it is also important to remember that you should use the loan funds expressly for the purpose defined in your planning. Spending the loan money unwisely can result into a debt trap for your fledgling business.

What do you think about this article? Please let us know in the comments. If you need to know more about how important it is to choose the right business loan, you can read our article here. We have also written in detail about small business financing options in India and you can read about it here.

Government MSME Schemes for Entrepreneurs

The Government of India offers some schemes to the MSME’s as they lack in resources and Technology and need assistance from big companies. Below are the schemes offered by the Indian government to Micro, Small and Medium Enterprises.

MSME Schemes – Launched by the Indian Government for Entrepreneurs

  • Udyog Aadhaar memorandum
  • Zero Defect Zero Effect
  • Quality Management Standards & Quality technology Tools
  • Grievance Monitoring System
  • Incubation
  • Credit Linked Capital Subsidy Scheme
  • Women Entrepreneurship

1. Udyog Aadhaar memorandum
Provides ease in availing credit, loans, and subsidies from the government with mandatory Aadhaar card.

2. Zero Defect Zero Effect
Manufacturers can be eligible for certain rebates and concessions if they manufacture export goods that adhere to certain standards.

3. Quality Management Standards & Quality technology Tools
Gives SMEs opportunities to learn to maintain quality standards while implementing new technologies through various seminars, campaigns, activities etc.

4. Grievance Monitoring System
Offers a platform for business owners to check the status of their complaints and open them if dissatisfied with the outcome.

5. Incubation
75% to 80% of the project cost can be financed by the government to help innovators with implementing new design, ideas or products.

6. Credit Linked Capital Subsidy Scheme
Capital subsidy for SMEs to upgrade obsolete technology and have better means to do their business.

7. Women Entrepreneurship
Only 14% Women amongst the total entrepreneurs in India. To enable women to start, manage and expand their business, the scheme provides capital, counselling, training and delivery techniques.

msme schemes india

NBFC Growth in India – Infographic

Factors That Led to the Growth of NBFCs in India

The transformation of Non-Banking Financial Companies (NBFC) in India in the past few years plays an important role in growth of Indian Financial system. NBFC’s have emerged successful as compared to Banks as their customized product offerings help individuals with their financial needs.

NBFC Credit Market growth is as shown below.

Financial Year Growth
2016 13%
2017 16%
2018 20%

NBFC’s grow at an average rate of 4%-6% every year. Following are the major factors that led to the growth of NBFC’s in India

Understanding the customer

  1. Focus on unorganized & under-served segments of the economy.
  2. Customization of rigid policies to meet customer needs

Customized product offering

  1. Emphasis on a limited line (or often a mono-line set of products) to serve the target customer segment
  2. Adoption of non-standard pricing models for product lines, in-line with the customer profile and inherent risk of lending

Leveraging technology

  1. Reduced time to market and enhanced customer experience
  2. Offering customized credit assessment models with optimized business processes

Reaching out to wider audience

  1. Catering to the needs of Tier-2, Tier-3 and Tier-4 markets
  2. Distribution of loans across several customer touch-points with 24/7 sales and service

Risk Management

  1. Improved governance with agile risk management model
  2. NBFCs continue to grow with Chief Risk Officer (CRO) ensuring the highest standards of risk management.

growth of nbfc in india

200+ Small Business Ideas with Low Investment

Small Business Ideas with Low Investment and High Profits Men and Women:

An entrepreneur struggles for capital that can enable him to successfully realize his idea. For any entrepreneur, a great business is one that is not capital intensive. There are many small business ideas that require very less investment. These ideas, if executed well, can ensure that the business flourishes and is profitable.

A business idea with low investment is a very desirable proposition. However, most people are not sure what those ideas would be and how it could fit into their scheme of things.

Here’s a list of profitable business ideas with very low investment that might appeal to you.

Successful Small Business Ideas
Creative Business Ideas
Home Based Business Ideas
Part Time Business Ideas
Low-Cost Business Ideas
Online Business Ideas
Profitable Business Ideas
Big Investment Business Ideas
Retail Business Ideas
Manufacturing Business Ideas
Renting Business Ideas

Top 10 Most Successful Small Business Ideas:

1. Tuition/ Coaching Classes:

What was your favourite subject in school? Did you sail through Mathematics like a wizard or did you have a special chemistry with Chemistry? If yes, a room, some chairs, a board, marker and duster is all you would need to start teaching a subject. If you know a foreign language like French, Spanish or German, you could easily impart lessons in such languages and start a small business without any great investment. There is always a demand for foreign language classes from students and professionals hence you need not worry about the pipeline drying up as an entrepreneur. The idea is not only about low investment and high returns, it also has a certain sense of cash inflow and demand predictability. For such businesses, you can start with a very small business loan too and there is no dearth of avenues from where you can get a basic loan to start this type of business.

2. Event/ Wedding Planner:

Weddings never go out of fashion. Whether the economy is booming or going through a recession, there is always a market for weddings. To add to it, weddings range from the “big fat Indian weddings” to very private gatherings. To put things in perspective, the Indian wedding market was estimated to be around $50 billion (around ₹33,000 crore) in the year 2017 and it is growing at a rate of 20 percent per year. This presents a huge opportunity for wedding planners who can ensure wedding themes, planners, decorators, caterers in place and immaculately plan and organize the entire wedding ceremony. It requires initial capital investment for staff, logistics and arrangements for which a plethora of small business loan options are available at your disposal. While the initial investment is low, the returns that can be made once the business scales, is significant.

3. Cooking Classes:

If the popularity of shows such as MasterChef is any indication, cooking classes may be a great business in India. It requires very low investment but can earn good profits. All you need is to set up a kitchen and equipment, the allied infrastructure, the raw materials and cooking ingredients. Anyone who believes in the potential of this business would need to make a very low initial investment. They can avail small business loans from a wide range of financial service firms. Once the cooking class is set up, the proprietor can run several batches at the same facility. The Capex investment is thus limited, and a small working capital investment would suffice to run the enterprise seamlessly.

4. Driving School/ Cab Service:

If one has good driving skills and can buy a vehicle such as a car, driving lessons can be imparted to people. With the same vehicle, the person can teach 10-15 customers in a month and earn a decent amount with minimum investment. It might not be very difficult to avail a small business loan and buy a car. A part of the earnings from the driving school can be used towards repayments to service the loan. Depending on the savings, the fleet of cars can be expanded, more driving instructors can be hired, and the business can flourish. A person may also avail a small business loan to buy a new car. If he has the required driving skills, he can enrol into a ride hailing service such as an Ola or Uber. Once he does that, he can offer rides through the ride hailing app and make money to pay off his loans and save for further business expansion.

5. Food Catering Business:

Everyone enjoys good food. A food catering business is never out of demand. All occasions such as birthday parties, weddings, anniversaries, etc. have food on offer and caterers are in demand to ensure that the food served is delicious. For a food catering service, all you need is a kitchen and a few employees to cook, serve, deliver and manage logistics. Did you always want to own a dream restaurant chain? You can start with a food catering business as it is comparatively low investment and high return business. You can avail a loan for the capex investments and slowly build a great business. Considering our country and the celebrations, rituals and events we have throughout the year, a catering service will always be in demand. It is one of the best small investment ideas in India.

6. Fitness Centres:

More than 65% of India’s population is less than 35 years old. The youth are a health-conscious lot and many of them are members of a fitness centre or gym. They love to hit the gym and burn a few excess calories. The remaining 35% also comprises a lot of fitness enthusiasts and health conscious people. Anyone who has trained in an area of fitness can start a fitness centre. The space or infrastructure and equipment can be leased or bought. The space can be used for almost 16 hours a day as people like to walk into the fitness centre at various times during the day. The idea of opening a fitness centre is a business idea with low investment. Even if the person interested in opening this centre cannot afford it, he has multiple avenues at his disposal to avail a small business loan. It is a very profitable business idea as subscribers of the fitness centre find it difficult to keep coming to the fitness centre regularly but most of them pay an annual subscription.

7. Computer Training Center:

We are in an era wherein there is a lot of demand for computer literacy and proficiency. If one has a basic idea of how to operate a computer and how to work with simple tools such as the Microsoft Office suite of products – Word, Excel, and PowerPoint, the chances of employment of the person is much brighter. Hence, there is a great demand to learn computers, programming and the booming areas in technology such as artificial intelligence, blockchain, data analytics, IoT etc. Are you an expert in any such area? If yes, you can start a training centre equipped with internet connection, a few computers and learning aids such as whiteboards, projectors etc. The business is driven by knowledge and hence the subsequent investment after the initial capex outgo is low. Multiple batches can be run for college students, working professionals etc. and a handsome profit can be made on a very small initial investment. What’s more, a small business loan for such initiatives is easily available. You can visit Lendingkart.com for business loan.

8. Boutique, Salon, Spa etc.:

There is always a demand for personal hygiene, fashion and grooming related services. Once you make an initial investment in the store and raw material, if you can focus on selling and brand partnerships, you are highly likely to turn it into a profitable business idea. A small business loan for the same can be easily availed. If you are interested in becoming your own boss with any such venture, the right time is now!

9. Real Estate Agent or Broker:

How about becoming a rainmaker for your own business? Sounds interesting. With a little research on the real estate market in the area and an understanding of the prospects for both commercial and residential real estate, one could venture into creating a real estate agency. If you have good communication and people skills, you are likely to attract buyers and sellers alike and broking a deal could help you earn a handsome commission. The investment required to start this is very less and as you build your network and start playing a role in more deals, the commission you earn can make the business venture a highly profitable one.

10. Web/ Social Media agency:

In the digital age, most companies want to spend their marketing budgets on advertising through digital channels and through paid social media campaigns. If you have a good knowledge of marketing, communications, branding, web presence management and social media, you could start your own venture to help companies establish a strong digital footprint. All you need is an office, a few computers, some skilled professionals and you are good to start. Are funds to start up a problem? You needn’t worry as there are many options to avail a small business loan to start a web/ social media agency.

Other Lucrative Business Ideas include:

Creative Business Ideas:

1. Children Play/Adventure Area:

Starting a children play area is one of the very profitable idea for a small business. Investment required for such a business is medium.

2. Tea/Coffee Café:

Working at a Café is a new trend. Having a well-furnished café with good ambiance and variety of Teas & Coffee is a profitable business. A rented/owned place with small investment is required for starting a Café.

3. Custom Gift Store:

A gift store is one of the best creative ideas. A customer is always looking for a customization in their gift. Giving them what they need is surely going to benefit your business and increase profits.

4. Antique Business:

Opening a small antiques shop with different kinds of antique items and furniture is surely going to pull the crowd. Antique business can become highly profitable if you find the right customers who are interested in antiques.

5. Game Organizer at Event:

A game organizer is in high demands at various parties like birthdays, anniversaries, etc. It is a creative business idea where you have to be good at communication and creativity.

6. Hot Air Balloon or Boat Ride Services:

This is one of the most adventurous business ideas. The investment required here is big and skilled manpower is required to assure customer safety. To start such a business, you need a bigger space.

7. DJ Services:

Be it any event, party or a wedding; DJ’s are always a priority. The pubs are completely dependent on the DJ’s to pull in the crowd. A person needs good amount of skills and experience to make the crowd groove.

8. Chatbot services:

One of the upcoming business in the recent years is developing a Chat bot. Many companies are incorporating chat bot service on their website. Building a custom chat bot as per requirement will definitely yield high profits.

9. Interior Designer:

If you have a degree in Architecture, you can become an Interior Designer. Real Estate in India is booming day by day. It is expected to reach $1 trillion by 2030. In such a developing market, the need for Interior designer is always going to be high. If you’re skilled and have bright ideas to turn a House into a Home, this business can do wonders.

10. Dance/Music Classes:

Dance and Music are two creative businesses. Both these businesses require special skills and lots of experience. One of the best things is you can start this business at your Home, with a minimal investment.

11. Ice Cream Business:

One innovative idea for a business is selling ice creams. Create unique flavours according to the seasons to attract your customer. This business requires special skill and patience to try out different combinations of ice cream.

12. Hair Business:

People might think of Hair business as a weird idea, but the hair industry is one of the most profitable industry. Hair industry contributed to $248 million in 2018. India exports hair to US, Europe, China and Middle East.

13. Ethnic Food Service:

Now a days people do not eat to satiate their hunger but for pleasure. If you think you have amazing culinary skills that can make people lick their fingers out, then you should start an Ethnic Food Service at home. You just need to have the right knowledge of ingredients and the idea of culture and region the recipe comes from.

14. Funeral Services:

Though it may sound weird, such services do exist and are making a good business in India. You need to provide services that might include transportation of the dead body and providing advice about the rituals. The services can also include providing all the material required for the cremation ritual.

15. Doula Services:

With little training in childbirth and care you can start your own Doula Service. The investment in this business is very less compared to any other business. The services include a prenatal visit, labour and delivery, and a post-delivery follow-up.

16. Organic Farming:

Organic Farming is being followed in India since the ancient times. It aims at cultivating the land by use of organic wastes. With the increasing demand for organic grain in the market, Organic farming has gained a lot of popularity. If you have a land you can invest in this small business.

17. Mobile garage service:

Most of the time cars break down in the area where there is no garage service. If you have a vehicle you can convert it into a mobile garage with a small investment.

Home Based Business Ideas:

1. Home Chocolate Business:

No matter what, chocolates will never go out of demand. May it be any occasion or event chocolates are a must. With little investment in the raw material you can start a home-based business of making chocolates. Home made chocolates have a huge demand in the market.

2. Recruitment Services:

Recruitment service is one of the most lucrative business in today’s time. All you got to do is shortlisting, selecting and appointing suitable candidates for jobs at the comfort of your house and earn great commission out of it from the company.

3.Tailoring:

Fashion and lifestyle today are one of the most money-making businesses. If you are a housewife or want to earn some extra income, then you can start tailoring service at home. All you need to have is a sewing machine and some fashion sense.

4. Tiffin Services:

Providing food has become a major business in the industrial areas. For some working professionals who are unable to cook at home or who stay away from home in other cities, Tiffin Services becomes a convenient option. You can use your kitchen to cook fresh food and start this profitable business.

5. Hobby Class:

If you want to enjoy doing a business start a hobby class. Today, parents want their kids to learn as many things as they can and not waste time hopping around in the sun. you can start hobby class for dance, music, craft based on the skill you possess. The best time to earn in this business is during the summer vacations.

6. Yoga Class:

Wellness industry is growing in India. In this fast-paced life, people want to give some time to themselves and attain peace. You can start yoga classes at home and train individuals to live a healthy life with just little investment.

7. Insurance Agent:

If you possess good communication skills and have great convincing power be an insurance agent. With little investment, you can start this business. There cannot be any other easy way to earn good commission than selling insurance policies.

8. MLM – Network Marketing:

Multi-level marketing or Network Marketing is a business where you need to sell product and services of associated company to earn profits. The income also includes a percentage of income from the sales group which is recruited by you. This is completely a referral business and you can operate from home.

9. Marriage Bureau:

One on the most productive business for housewives and retired individuals is Marriage Bureau. You just have to meet and greet people and with little investment you can run this business from home.

10. Medical Sample Collection:

If you have marginal knowledge about the blood group and various medical procedures, you can start this business. It only requires you to collect body fluid samples and provide it to a pathology clinic near you. This is a less competitive business and can be started in a small place.

Part Time Business Ideas:

1. Errand Services:

If you think you have excellent management and planning skills, you can run this business efficiently. All you have to do is look out for errand task such as banking, grocery shopping, paying utility bills, delivering things etc. and earn through the services you provide.

2. Party planner:

If you enjoy planning and organizing, how about being a party planner. This is the most exciting job as it involves creativity. This business is in very much demand in the metro cities due to their party culture.

3. Accounting and Record Keeping:

If numbers excite you then you can start an Accounting and Record Keeping business. A finance person with experience in accounting job can earn through this business by rendering their expert services. You need special training for this business but can start on your own with very little investment.

4. Day Care Services:

These days many parents rely on daycare centres to care for their children while they work. While some parents may just consider a professional daycare centre to be the safest option for babysitting, but others consider a homely environment for their children the best. So, if you like children and don’t mind spending a few hours of your day caring for them then you can start a Day Care Service centre.

5. Sofa Cleaning Services:

People are getting busier each day. They do not find time to clean their furniture at home and office. If you enjoy cleaning, then you can team up with some semi-skilled or unskilled manpower and start Sofa Cleaning service with the help of right equipment.

6. Visa Consultant:

Consultants are always in demand. If you have knowledge about various rules and regulations of visa and can guide about the documents required in the process you can establish a Visa Consultancy firm.

7. Personal Chef:

If you love cooking and hold expertise in cooking various cuisines, you can be a Personal Chef and generate income from your services. This business requires you to investment in mainly the cooking apparatus as well as the ingredients.

8. Sports Coach:

If you share love for sports and hold a degree in sports coaching, you can train children or individuals who want to make a career in sports. You will need to personally train the individual so he can achieve his goal.

Low-Cost Business Ideas:

1. Mobile Food Shop:

Mobile Food Shop is the top small business idea as people all over the world love to eat tasty and healthy food. This is a business which you can start with minimum investment and gain maximum profits as no one can ever refuse tasty food provided in a hygienic manner.

2. Fast Food Parlour:

Fast food is the first choice for people who are hungry and do not have access to home cooked food. If you provide tasty and hygienic food at an economical rate you will gain quick profit.

3. Diet Food Shop:

These days people are too much conscious about what they eat. You can find fast food joints everywhere in the rural and urban areas, but we hardly have shops that provide healthy diet food. Therefore, starting a diet food shop is an excellent idea for a small business.

4. Health Drink:

Due to social media, people are well aware about what is good for their health. They have started opting for health drinks over carbonated drinks. Juices like neem, beetroot and carrot are too much in demand. Thus, starting a Health Drink stall is a good business idea.

5. Ice Dish & Soda Shop:

Ice Dish & Soda Shop is one of the lowest investment business with maximum profit. All you need is to invest in the equipment required to make the drink, like ice snow maker and soda maker.

6. Courier Shop:

If you are quite efficient in delivers a message, package or letter from one place or person in the required time, this business is for you. You will require semi-skilled workers to manage the business.

7. Laundry Shop:

Every individual love wearing fresh clothes that smells good. If you are efficient in providing good laundry service this business is for you. You can employ a few unskilled workers to help you manage the task.

8. Candle Making:

Candle Making is an art but you can make this art into a profitable business if you provide bulk orders by using available machinery through marginal investments.

9. Soap Making:

Organic and herbal soaps are in demand in the market. If you have the skills to make soaps using various ingredients, then you can make this hobby a business.

10. Idol Making:

If you are creative and have the skills to make idols, then you can start a business of making idols. We are an idol worshipping country and during festivals like Ganesh Chaturthi, Durga Puja etc idols are in great demand.

11. Bag Making:

After ban on plastic, this area of business is flourishing as there is a huge demand for paper bags from malls and shopping units. You can use your creativity to make bags from jute, cotton etc to sell them online or offline.

12. Pickle-Papad Making:

Pickle-Papad Making is one of the best home-based business idea that women engage in since earlier times. You start this business part time or full time as per your convenience.

13. Fruit Jam Making:

Home made fruit jams are fondly relished by people as they are free from preservatives. You can make this into a profitable business with less investment provided by various organisations.

14. Career Counselling:

If you understand the work trends and the careers that are in demand you can opt to be a Career Counselling. You can start this business from home. Nowadays parents and teachers look out for good Career Counsellors so they can guide children in pursuing a career for their future.

15. Religious Items:

India is a country of multiple religion and languages, there are various customs and traditions that people follow. The requirements of religious items for engaging in various customs are different. The religious items such as Diya, Dhup, Murti, Shankha are always in demand. Therefore, this business is favourable in areas where there is a religious organisation nearby.

16. Pest Control:

Pest control business is slowly becoming one of the top business in the metro cities. Everyone wants to live a healthy life free from diseases caused by insects and mosquitos. Thus, Pest Control business is a good option in the metro cities.

17. Paan Centre:

Anyone can open a Paan centre as it does not require any skill. It is a low-cost business idea and involves preparation and sale of paan and other related items. You can also sell small items like biscuits and chocolates along with paan.

18. Landscaping Service:

Through landscaping business, you can provide clients with lawn services to keep their yards groomed and can also plant flowers, trees and shrubs. To start this business, you need to have the knowledge to plant flowerbeds and gardens to raise the value of a property. As the property rates are going high this business will give you maximum turnover.

19. Aquarium Shop:

Aquarium is a low-cost business where you need to take care of the fish tank and provide Professional Aquarium Leasing and Maintenance for Office or Home. Aquarium is considered good for Vaastu therefore this is a good business in less investment.

20. House Repair Service:

Every now and then houses need maintenance and repair thus House repair Service is a lucrative business idea. If you have knowledge about construction along with a few skilled workers, you can start this business.

21. Palm Reader or Astrology:

Palm reading is a practice of predicting the future of a person by examining his/her hands. It is a convenient business and a person having the skills of a palm reader can earn a moderate sum through this business.

22. Fumigation Services:

Through Fumigation Services, gaseous pesticides are sprayed or filled in the infected area to get rid of pests. The fumigants or pesticides poison the pests in and around the area. One needs to have clear idea of the chemicals used in the process to run this business.

23. Spy & Security Services:

No one can be trusted at present day. Due to which the need for Spy & Security Services arrived. Many people use such services for their homes and offices

24. Car Pooling Services:

Car-pooling is a type of car rental designed to be convenient for people who want to use cars for relatively short periods of times. Car sharing services offer casual drivers the option to rent a car by the hour or day. Due to awareness about pollution and traffic control this business is booming day by day.

25. Software Training:

If you are an expert in computer language such as C, C++,JAVA, HTML etc. you can start a business of software training from a small rental area or from your house.

Online Business Ideas:

1. Blogging:

A weblog which is also called as a blog is maintained by a blogger to give out information about a subject. Blogging has gained momentum now a days as it helps generate traffic and there is demand for bloggers in the market. Therefore, this can turn as an amazing online business in today’s time.

2. Vlogging:

Video blogging, or vlogging is an affordable avenue to use to help your small business grow. Video blogging is an innovative way to increase your brand awareness. You can upload your blogs on YouTube and make money out of it easily. All you need is confidence in front of the camera and some editing skills to start with.

3. YouTube Channel:

By 2021, it’s estimated that 82 percent of all internet traffic will be for video. Starting a YouTube channel gives you a powerful medium to produce and distribute video content, which is only going to become more important day by day. Youtubers help individuals and businesses build influence, income, and impact with YouTube and online video.

4. Freelance writer:

Freelance writing is any sort of writing assignment that you do for pay, outside of a staff position. You can meet client and write content for Web pages, Blog posts, Magazine articles, Newspaper articles etc many companies nowadays hire freelance writers for their business.

5. SEO Expert:

An SEO company offers search engine optimization services to businesses to help them improve their visibility online. Search engine optimization is the process of making changes to your website design and content to make your site more attractive to the search engines. If you are somebody who have an expertise in this area, then you are good to start a SEO Business.

6. Hosting Paid Webinars:

A webinar is an online event that is hosted by an organization/company and broadcast to a selected group of individuals through their computers via the Internet. A webinar allows a speaker from the hosting organization/company to share PowerPoint presentations, videos, web pages or other multimedia content with audiences that can be located anywhere.   If you are someone with a good domain knowledge, then this is an exceptional business idea for you.

7. App Development:

Application development involves creating a computer program which performs different tasks that a business requires. Application helps businesses automate tedious process like calculating monthly expenses to scheduling sales reports, to increase efficiency. Many companies require this service so if you have the software skills you can make App development a profitable business.

8. Affiliate Marketing:

Affiliate marketing is the most profitable way to make money online. It is the oldest forms of digital marketing wherein you refer someone to any online product and when that person buys the product based on your recommendation, you receive a commission. You can start this business with very little investment.

9. Products Sell on Facebook:

Facebook has more than 2.3 billion monthly active users as of December 2018. Other than being a popular social networking website Facebook provides facility to make your own store or group online. If you have a product or service with some marketing knowledge you can sell it online on Facebook and make money out of it.

10. Domain Flipping:

Domain Flipping is the business of buying a domain at a lower cost and selling it at a profitable amount. It is a simple business which can lend you a lot of revenue without much effort.

11. Sell Photos Online:

There are many different websites to sell stock photography to be used further for making graphic designs or other resources. You can create portfolios of your images and earn money. There are many different websites to sell stock photography which can help you expand your business.

12. Stock Market Trading:

Stocks are a type of security that gives the investor a share of ownership in a company. Brokers buy and sell stocks through an exchange, charging a commission to do so. A broker is simply a person who is licensed to trade stocks through the exchange. A broker can be on the trading floor or can make trades by phone or electronically. This can be a profitable online business if you have good communication skills.

13. Data Entry:

Data entry is one of the easiest business idea where one can earn by adding data using the desired software hosted on a computer and its data entry operators who perform these tasks. The benefit of this business is that you can start this business with no previous experience.

Profitable Business Ideas:

1. Restaurant:

You can start an eatery that serves food and drinks to customers in exchange for money. Meals are generally served and eaten on the premises, but many restaurants also offer take-out and food delivery services which is the need of the hour. This business requires a lot of planning and hard work. With a few skilled workers you can start this business at a medium investment from any organisation.

2. Readymade Namkeen Breakfast Shop:

Namkeens are easy Breakfast that can be had on the go. You can start a Readymade Namkeen Breakfast Shop across the street as people prefer readymade Namkeen and breakfast instead of cooking at home and it is an easy snack.

3. Mobile Sales and Repair:

Mobile phone business is growing exponentially. Your customers who buy phones from you ever need mobile repairing services, there are high chances that they will come to you to get their handsets repaired. Your mobile repairing business can be a highly profitable business venture if its run in a professional way. The best thing is that you can start this business with a very small investment and with little experience into the same.

4. Package Drinking Water:

Demand of packaged drinking water is growing exponentially in small towns and cities in India. This is an evergreen business and there is place for everyone who want to step into this opportunity. Investment required in this business depends on the size of the business and the clients you hold.

5. Jewellery Production & sale:

If fashion is an area where you thrive, and you have a talent for creating unique jewellery then you can start this business. You can build a name in the local market and ask for referrals from previous customers to excel in this business.

6. Dairy:

Milk and milk products are always in demand. All you need is a small shop and cold storage facility to run this business. You can serve milk, sweet and related products and establish a dairy business.

7. Commercial and Industrial Machinery Equipment Rental:

Offering commercial and industrial machinery and equipment on rent to various industries like construction, mining, transportation, and forestry machinery could be a profitable business idea. These firms generally do not own a store-front facility. As this heavy machinery are usually very costly, companies prefer renting them instead of buying. This business requires moderate investment, but the returns are high compared to other businesses.

8. Travel Agency:

A travel agency is a public service related to travel and tourism. You need to have a good communication skill to start this business. You can also operate from home and do not need to rent a place for starting this business. You can provide Air, Road and Railway travel tickets to start with. This business is in huge demand at metro cities.

9. IT Hardware shop:

Hardware shops provide hardware items building material, plumbing material, etc. to huge electrical materials. To start this business, you need to have the knowledge of the products. On average a good performing hardware makes a net profit of 10% on its daily sales.

Big Investment Business Ideas:

1. Textile Unit:

The textile industry is currently contributing 2% to India’s GDP and 15% to the export earnings of the country. Opening a textile unit firm means to supply different types of fabrics for the fashion and apparel industry. The shop should be in an area where there is demand and the factory should be in an area that is well connected.

2. Rice Mill:

Rice Mill involves the postproduction of rice. the equipment and machinery will help remove the husk from the rice to make it edible. India is still the largest exporter of Rice in the world therefore this is a profitable business.

3. Beer and Wine Making:

In the last few years the wine industry was at a high-growth, $30 billion industry for both domestic and international wines. Therefore, starting your own beer and wine company is the diverse opportunity for business startups.

4. Manufacturing Fabrication Plant:

Metal fabrication is the creation of metal structures by cutting, bending, welding and assembling processes. It is a value-added process involving the creation of machines, parts, and structures from various raw materials. You need skill manpower and lot of machinery for this business.

5. Crane and Lifting Service:

Crane and Lifting Service deliver the right lifting equipment and service to match the customer needs. You need specialized maintenance services and spare parts for all types and makes of industrial cranes and hoists to start this business.

6. Transportation services:

To start a transportation business, you will need to decide which type of business you intend to create. The type of company you think of establishing should be determined based, among other things, on the need and competition in the area you decide to work in.  You can start a taxi service, bike rental, or bus service as per your investment into the business.

7. Car Parking Services:

If you have a huge vacant area outdoor which you can use for business purpose you can start a Car Parking Services business. It is a recent concept as the number of cars on road are increasing.

8. Petrol Pump & Gas Station:

Gas stations offers various fuels to motorists including petrol, diesel and LPG and CNG gas. Petrol Pump is considered to be a very beneficial business. If you open petrol pumps at a decent place, you can make a lot of money.

9. Marriage Halls:

There are marriages and events happening every now and then in India. Which gives rise to the demand for Marriage Halls. If you own a property which can be converted into a big hall that can accommodate 800-1000 people, you can start this business and rent it to people looking for ceremonies, weddings, parties, etc.

10. Luxurious Car Services:

The sale of Luxurious Car has reduced because despite of the desire to buy such cars not many can afford it. The demand for Luxurious Car Services has increased in the market. In this business you need to purchase luxurious cars and lease them. People rent luxury cars for special occasions or making airport transport easier.

11. Imported Furniture Store:

According to data from The Retail Owners Institute, the gross profit margin for retail furniture stores has risen slightly from 43.8 percent in 2014 to 45 percent in 2018.  For this business you can import furniture from China, UAE or other countries. You need a huge capital to start this business.

12. Electronic Store:

We are now living in the age of electronics. Electronics are tied into so many different aspects of our life. So, starting an electronic store is a profitable business but you need to have information about the products. The amount required to invest in this business may vary according to the products you provide.

13. Art and Collection Shop:

Professional artists can start their own art business. Starting an Art and Collection Shop requires a little business planning, a whole lot of marketing, and most importantly, the ability to create work that resonates with people.

14. Video Conference and Board Room Services:

With businesses operating more globally and at a faster pace than ever, there is increasing need to bring together remote participants using a variety of video services for conferences, training, or regular information-sharing sessions without the requirement for extensive travel. You can make business by providing digital solutions that enhance convenience, improve productivity, and save companies crucial time and money.

15. Night Club:

If you are a night person and love music and dance, you can make others groove by starting a night club. The investment is big as licence and good quality sound equipment are required to start this kind of the business.

16. Poultry and Fisheries:

Poultry and Fisheries has now become a popular rural enterprise in different states of the country. Apart from eggs and chicken, poultry also yields manure, which has high fertilizer value. This becomes an added profit for the business.

17. Building Construction:

A construction company is a capital-intensive business. You may need to rent or buy heavy equipment or purchase material in bulk. A solid business plan can outline your assets and make the case for your new construction company to access funding from investment sources. This is a business with high investments that can provide higher outcome.

18. Solar Farm:

Solar farms are replacing croplands that don’t generate enough income from traditional farming. Solar farms use solar panels to generate huge amount of renewable electricity that can be used by individual for commercial and residential purpose. Building a solar farm is a capital-intensive business but the Returns on Investment (ROI) are worth it in the long run.

19. UPS Business:

UPS business involves buying and selling of UPS. You can collaborate with major UPS Company like APC and sell their products to make business.

20. Auto Modification Services:

Custom car shops appeal to automotive enthusiasts who are in love with engineering and designing. This business is needed because of the large demand for vehicle customization. You need to have a creative mind to start this business.

21. Chemical Unit:

The chemical industry landscape has opened new doors of opportunities for chemical buyers and sellers. This business has a huge export potential and requires huge investment.

Gold Ornament Shop: Starting your own Gold Ornament shop business is a great way to tap into the jewellery industry. A small jewellery store can be started for as little as $20,000. The cost may vary depending on your location.

22. Printing Press:

Our society is so much influenced by the printing press. Nowadays, running a printing press is a successful business. We can print books, newspapers, invitation cards, magazines, posters, flyers, pamphlets, envelopes, business cards, and stationery items. Operating a printing business requires a few specialized pieces of equipment, and can be operated as a home-based, storefront or online business.

23. Peer 2 Peer Lending Business:

P2P lending is a business where one lends money to individuals or small and moderate businesses through online services. To start a Peer 2 Peer Lending business, you need to open an investor account for starting this business. Though profitable, this business involves great risk.

24. Internet Service provider:

An Internet service provider (ISP) is a company that provides customers with Internet access. There is a huge demand for internet thus starting this business makes sense.

25. Computer Class:

If you have the knowledge of computer and can teach others the same, then you can start a Computer Class. All you need is a few computers and a space where you can set up your business.

26. Hotel Business:

Hotel business requires huge investment and manpower. To start this business, you need to buy or rent an establishment that provides lodging and, often times, meals and other services for travellers and other paying guests.

27. Oxygen gas bottle:

To start this business, you need to Invest in quality equipment, healthy supply of cylinders of liquid oxygen, compressed oxygen, and flow meters. You need to remember to maintain a safe, hygienic environment for your equipment at all times. You can own cash to cover start-up and operating expenses.

28. Car Battery:

If you are seriously thinking of launching a car battery business, get advice from someone who is already in the business. Every vehicle needs battery may it be a two-wheeler or a four-wheeler. Therefore, Car Battery business is a very good business idea

29. Cement Business:

India has a huge potential for infrastructural growth. When the future involves the development of 99 smart cities, you can expect a positive growth in the cement business. Opening a cement business can get you on the path to a secure financial future but it’s important to plan out the business in detail before you start.

30. Spice or Masala Powder:

Spices from India are going places, with exports on course to top $3 billion in the last few years. Spice Powder Making Business ensures a good return with low investment.

31. Money Lender:

Lenders are businesses or financial institutions that lend money, with the expectation that it will be paid back. The lender is paid interest on the loan as a cost of the loan. The higher the risk of not being paid back, the higher the interest rate. This business involves money therefore, you need to carefully lend money to people who can return the borrowed money with proper documentation.

32. Nursery school:

The demand for good nursery school is growing in the city. Now is the perfect time to consider opening a nursing school. To start this business, you need trained staff and huge space to start this business.

33. Modelling Agency:

If you are interested in representing fashion models, to work for the fashion industry then you should start a Modelling Agency. These agencies earn their income via commission, usually from the deal they make with the model and/or the head agency. The top agencies work with big-budget advertising agencies and fashion designers.

34. Pathology Lab:

Indian diagnostic market is growing at nearly 15-20% and is estimated to be currently worth 40,000 Cr. Setting up a pathological lab can be an extremely lucrative business idea.

Retail Business Ideas:

1. Grocery Store:

Grocery stores sell food and other household items. Often called supermarkets, grocery stores are go-to sources for a home’s food needs. grocery shopping is an integral part of human life, and any such business that appeals to life sustenance is sure to become profitable if it is handled properly.

2. Organic Food Store:

Organic food store is another niche in the grocery business idea. To succeed in the organic food business, it is essential to have a proper plan on how to get authentic organic produce on a regular basis. Location is another very important thing to consider as you have to set up in an area where the people are health conscious and can afford the high price of organic produce.

3. Hardware Store:

A hardware store typically sells hand and power tools, building materials, plumbing supplies, cleaning products and much more. A hardware store has a lot of components to the business that require detail-oriented planning. You need to research and find a developing area to start this business for its success.

4. Auto Spare Part Store:

Auto Spare Part Store is a cash-intensive business. With substantial capital investment and strategic planning, you can initiate this type of store. Starting an Auto Parts store is a fulfilling way to make money.

5. Stationary & Book Store:

Stationery items are always in demand whether be it a school or corporate. The best place for running stationery and bookstore is always nearby school or corporate the chances of getting more business and good profit is very high. In this business investment is not much required and no special skills needed.

6. Cosmetic Store:

As people are now a days becoming more beauty conscious so the demand for the beauty products have increased than before. Ladies are always in search for cosmetic store. This business too needs very small investment.

7. Leather & Perfume Shop:

This is another form of small business in which you need to keep products like bags, belts, wallets and perfumes. These kinds of business are always an evergreen business with good product and small investment.

8. Xerox Shop:

Xerox Shop is a good business for making profits. A Xerox Shop is available in every locality. This itself proves the success of running Xerox Shop along with other products like bookbinding, lamination and small stationary items. The investment required too is low. The best location to start up this business set up would be schools, colleges, office etc.

9. Beauty Salon:

Beauty salon are now among the emerging business in the India. Beauty care segment is most likely carried out by ladies. This business demands some special skills related to skin care. The person carrying out this business should have undergone special training and courses related to skin care and have good knowledge of beauty products. Investment required for this small business start-up is very low or else you can even opt for a franchise for a good renown brand.

10. Medical Diagnostic Center:

Medical care is essential in today’s world. Day by day there are new disease effecting health of people, so timely health and medical check-up has become very important. With proper medical check-up and advance analysis, we can be safe from many prone diseases. The investment required for running this business is substantial.

11. Photo Studio:

Photo studio is a business which can be started up with very less investment. Business success depends upon the skills and ideas that you have in the photography line.

12. Safety & Security Products Retail Business:

In today world safety and security is all what one needs. So, the safety and security products in the market is always in good demand in the retails business. For starting this business, you need to have products like helmet, safety lockers, CCTV cameras etc.

13. Herbal & Ayurveda Products Retail Business:

Herbal and Ayurveda exist in India from a very long time. Ayurveda is a proven medicine for healing and curing diseases with no side effects. The herbal and Ayurveda medicine manufactures are now booming in the health segment. Especially after the entry of Patanjali into the industry. This is the right time to start up with herbal and Ayurveda products retails business with moderate investment and get better profits.

14. Scrap Store:

You can also earn profit from scrap store. In this business what you need to do is collect scrap like newspaper, plastic, and other discarded material.

15. Gift Card Shop:

You will find at least one gift shop in all locality. Today’s world is much excited for giving and accepting gifts. Gift shop also possess good amount of revenue. Gift shop business consist of business or personal giftings. Gift shop business require proper location and good collection of gift cards. Gift cards are used widely at every occasion.

16. Optician Shop:

You may have even noticed there would be at least one optician shop in all areas. Eyeglasses are mostly used by majority of people. Due to the constant climatic changes there are often eyesight issues caused to people of all age group. To start up with eyeglasses business you need to have sunglasses, contact lenses and different trendy frames for specks. Rate of the products depends on quality of the products and business location.

17. Seasonal Business:

Seasonal Business ideas are another form of business in India. This business start-up can be done with small investment. Your business depends on the seasonal and festive needs of the consumers like crackers, raincoat, woollen clothes etc.

18. Utensil Shop:

Utensil shopping business is a never-ending retail business idea. Requirements for starting this business is you need a suitable shop and inventory of steel items. A success of this business depends upon location of shop and quality of utensils.

19. Foam Mattress:

Thinking of starting own foam mattress business? Starting of manufacturing foam business is among small investments. You either can become trader or a manufacturer.

20. Business Idea of Ice:

Business of ice can be started up with a very low investment. Ice is a commodity frequently used by us in day to day for cooling.

21. Tattoo Shop:

Today generation is crazy for tattoo and ready for paying any amount for good designer and trendy tattoo collection with them. Tattoo business is among the upcoming business for earning good profit. Only thing you need to know is skills required for tattoo making or have skilled people for the same.

Manufacturing Business Ideas:

1. Honey making:

Honey Manufacturing business is another form of small Business. Honey processing can be performed in two different process manual or automatic. Starting your honey manufacturing business is easy and convenient for people planning for small scale business.

2. Manufacturing toys:

Toy Manufacturing business is a top booming industry in the Indian business segment. Starting up a new Toy Manufacturing business is very profitable. Before setting up the business unit we need to have proper research on the prototype and raw material required for toy manufacturing. There are machineries available in the market by which you can produce ample number of toys and earn more profits. Toy Manufacturing business can be started up with a very low investment and then further expanded.

3. Manufacturing of Plastic bottles:

If you are looking for starting up your own business venture, currently there is a booming rise in the plastic products manufacturing business. Day by day the demand and supply for the plastic bottles are increasing. Before starting up with the manufacturing of plastic bottles you need to have proper knowledge and expertise in injection moulding and manufacturing. You also need to complete some legal formalities like getting up your legal documents ready, factory license number, GST number etc.

4. Fertilizer Manufacturing:

India is the third largest manufacturer of nitrogenous fertilizers in the globe. Fertilizer manufacturing business can be started with very low investment or high investment. If you are new to this business start with a small investment with compost fertilizer from waste items, and soon you understand the business expand your business.

5. Water Filter and bottling Plant:

Water filter and bottling plant is a commercial enterprise and one of the prime requirements now a days. The role of mineral water bottle plant is important for this industry and to the society. For setting up a business of water filter and bottling plant you need to have ample space and skilled manpower. The investment required for this business is very high.

6. Furniture making:

Furniture are an essential part of our daily life. Furniture business is also to be considered as a booming industry. Furniture always have its never-ending demand from schools, colleges, offices and homes. If you have ample of space with you and skilled workers to start furniture making.

7. Production of Leather related items:

Production of leather related items are always in huge demand in the market. Leather products such as bags, footwear and garments etc are some leather related items which have huge demand and are used in day to day living. If you get proper manpower you start up your business of production of leather related items.

8. Electrical Fitting Production:

Electricity has become a essential for our day to day living. We cannot even imagine a day without electricity. In today’s life there is a high demand for electrical fitting production in the market. But even though the investment required in this business is not so high as compared to others, with small investment to we can start up an electrical fitting production.

9. Embroiderer:

We will now next cover the details related to Embroiderer business.  To start-up with this business you need to have a creative designing idea for embroidery. Creative designer Embroiderer can be done with low-end machine or by sophisticated tools. This is a lucrative business and can earn good margin.

10. Carpet Making:

The Carpet making business is among the creative business and is among the large business opportunity. Starting up a carpet making company with good creative mindset, would lead to a high profitable business. Before starting this business, you need to know the appropriate skill before starting the business.

11. Ceramic Tile Maker:

Ceramic Tile business is another profitable business as Tiles are required in every household. The investment required is high in this business.

12. Kitchen Utensil maker:

There is huge requirement of Kitchen Utensils in every house. Starting a Kitchen utensil business is a great idea in terms of the profit that it will give.

Renting Business Ideas:

1. ATM Space Rental:

A commercial space always yields good profits. Renting your space to Bank ATM will yield fix monthly profits.

2. Car/Bus Rental:

Car rental business has grown since Ola & Uber came into existence. Buses are in huge demand for family functions, weddings, etc. Start a Car/Bus rental business with a business loan from LendingKart.com

3. Construction Equipment Rental:

Real Estate Industry in India is booming day by day. Due to high cost, developers prefer getting construction equipment on rent. Starting this business will result in high profits every time.

4. Fancy Dress Renting Business:

Starting a Fancy-dress business is a low investment business idea as you need to buy dresses that fits kids as there is a huge requirement from school kids for school events. Start your fancy-dress renting business and earn handsomely.

5. Decorator:

Starting a Decorator business is always a great idea as every event requires decoration material, chairs, stage material, etc. Though the initial investment in this business is high, it will yield profit at every event as the same stuff will be used.

There are many more such ideas wherein the investment required is low, but the profits can be significantly high. Such lucrative ideas mostly depend on your people and networking skills, knowledge in niche areas and latent demand for the same in the market. If you are bitten by the entrepreneurial bug, take the plunge today. If financing your venture is a stumbling block, visit Lendingkart.com.