Small and medium enterprises (SMEs) have been the pillar of the Indian economy. Employing close to 40% of India’s labor force and contributing 45% to India’s manufacturing output, SMEs play an important role in creating millions of employments, particularly at the low-skill level. The country’s 1.3 million SMEs account for 40% of India’s total exports.
Although they employ 40% of India’s labor force, they only contribute 17% to the Indian GDP. Why? Too many firms stay small, unregistered and un-incorporated in the unorganized sector so that they can avoid taxes and guidelines. The firms have little incentive to invest in upgrading skills of largely temporary workers or in investing in capital equipment due to funds constraints. Financing is the main issue and the lack of it is the main cause for an SME going out of business.
But no more finance is a threat for SME. Muthoot finance has launched its new product overdraft loans (OD) to help SME grow business. The financing has been made very convenient.
Usually when we have a problem we approach our closest friend – could be anyone, your dad, mom, a childhood friend, siblings – it is one of them we approach when we really need advice, or money, or anything personal thing you wish to share. As a businessman lot of us rely on these crucial friends to help us during the time of stress.
Muthoot finance has been trying to this best friend in making financial decisions. With the impression of being a family-like financial institution, Muthoot Finance makes sure that financing is not another headache the already stressed SME owners have to go through as is the case with the majority of big banks in the country. These banks are too large to worry about such crucial soft issue and hardly bother about it.
But Muthoot finance makes the experience of borrowing money very convenient as if the money was being taken from a near and dear one. Though Muthoot Finance has grown big using the branch that runs the Gold/Easy Loan wagon in India, they felt the necessity to guide the crucial SME sector.
To augment enterprise working capital gap and to help in enhancement of current ratio and also for meeting genuine business requirements, Muthoot finance new product “OD For SMEs and upcoming businesses” is a great option. Catering to the needs of businesspersons, the SME Loans provide liquidity for working capital and fixed assets. With easy approvals and quick processing time, the bank provides timely assistance to enterprises without much hassles and giving a comfortable feeling. True with its philosophy, Muthoot helps businesses apply for loan when they need the money most through this product in an overdraft situation and double their incomes.