What is the eligibility for MUDRA loan under Pradhan Mantri MUDRA Yojana?
MUDRA loans are available to non-farm micro and small enterprises including proprietorships, partnership firms, and companies. Three categories exist: Shishu (up to ₹50,000), Kishore (₹50,000 - ₹5 lakh), and Tarun (₹5 lakh - ₹10 lakh). Business vintage, GST registration, and bank account history are primary eligibility factors. Applications are processed through empanelled banks, NBFCs, and MFIs – Trade4Asia-listed providers include MUDRA-empanelled lenders.
What is CGTMSE and how does it help MSME borrowers?
CGTMSE (Credit Guarantee Fund Trust for Micro and Small Enterprises) is a Government of India scheme that provides collateral-free credit guarantees to lenders for MSME loans up to ₹2 crore. Under this scheme, MSMEs can access business loans without pledging property – the government guarantee covers 75-85% of the loan in case of default. Most Trade4Asia-listed NBFC and bank partners are CGTMSE empanelled.
What financial documents are required for a business loan above ₹25 lakh?
Standard documentation for business loans above ₹25 lakh includes: GST returns for 12 months, bank statements for 12 months (all business accounts), ITR with Computation of Income for last 2 years, audited balance sheet and P&L for last 2 years (for loans above ₹1 crore), business registration certificate, Aadhaar and PAN of proprietors/directors, and property documents if collateral is offered.
Is it possible to finance a used commercial vehicle in India?
Yes – used commercial vehicle loans are available from several Trade4Asia-listed NBFCs specialising in the segment. LTV ratios for used vehicles are typically 70-85% of assessed value (vs 90-100% for new). Interest rates are 4-8% higher than new vehicle loans. The vehicle must typically be less than 10 years old (lender specific) and pass a physical assessment by the lender's empanelled valuer.
What is the difference between a financial lease and an operating lease for equipment?
In a financial lease, the lessee (business) effectively owns the asset – it appears on the business's balance sheet, the business claims depreciation, and the lessee bears maintenance and residual value risk. At the end of the lease, the asset is transferred to the lessee for a nominal amount. In an operating lease, the lessor retains ownership – the asset stays off the lessee's balance sheet, lease rentals are fully expensed, and the lessee returns the asset at lease end with no residual obligation. Operating leases are preferred for short-lifespan or rapidly obsoleting assets.
