Dairy farm business is the most thriving business in the country as milk is one of the basic necessities in most households. Apart from this, dairy products like ghee, butter, cheese, etc., are also a requirement for many families.
So, it is barely a surprise that India has over 7.5 crore dairy farms. India is the largest producer of milk worldwide, as well.
In case you are looking to open a dairy farm, then you can go for a dairy loan offered by NBFCs which can aid you to establish such a business.
What Is the Difference Between NBFCs Vs Banks?
NBFCs are Non-Banking Financial Companies. They are basically the main fiscal mediators and provide nearly similar services to the patrons.
NBFC can’t issue demand drafts and cheques like banks. Banks participate in the nation’s imbursement mechanism while NBFCs are not engaged in these kinds of transactions. This is the key difference between NBFCs and Banks.
Non-Banking Financial Companies entered both the private and public sectors to accompany banks in giving funds to individuals as banks can’t serve every segment of society alone.
For banks, it is compulsory for them to maintain reserve ratios such as SLR or CRR, while NBFCs are not needed to maintain reserve ratios.
Activities Performed by NBFCs
The activities of NBFCs are associated with lending and other activities like offering loans, trading in the money market, transfer of funds, handling portfolios of shares, and many more.
NBFC registration is compulsory to begin the activities of Non-Banking Financial Companies.
The activities of NBFC are adapted to leasing, venture capital finance, hire purchasing, housing finance, infrastructure finance and so on. They only accept term deposits, and deposits repayable on demand are not accepted by them.
Sundaram Finance, Kotak Mahindra Finance, SBI Factors, and ICICI Ventures are a few well-known NBFCs.
NBFC Categories
- Micro Finance Company
- Investment and Credit Company
- NBFC Factor
- NBFC Account Aggregator
- Housing Finance Companies
- Mortgage Guarantee Companies
- NBFC peer to peer lending platforms
- NBFC Infrastructure Debt Fund
Banks are the financial institutes that the Government legalises for conducting banking activities like giving credit, accepting deposits, paying interest, clearing cheques, managing withdrawals, and offering general utility services.
Banks are seen as the major institutions that rule the whole economic system of the nation. They serve as a financial mediator between the mortgagors and depositors. They also ensure seamless functioning of the economy within the nation.
There can be public sector, private sector, or foreign banks. Banks are too liable for making loans, transfer of deposits, and secure and timely funds transfer. The possession of the bank lies with the stakeholder, and they work with the profit intention.
NBFCs Offering Dairy Loan
- Tata Capital
Tata Capital offers unsecured business loans to those who want to start a dairy business. This loan is collateral-free, and the interest rate is 19 percent. A person can attain a minimum of 5 lakh INR and up to 75 lakh INR under this loan. The reimbursement tenure is from 1 year to 3 years.
- FlexiLoans
FlexiLoans is an NBFC that grants finance solutions to small and medium-sized businesses in India. It offers various kinds of loans like Flexi Vendor Finance, Flexi Term Loan, Flexi Line of Credit, and Flexi Loan against POS.
- Indifi
Indifi is another NBFC that provides loans to SMEs at an 18 percent interest rate onwards. In addition, it provides term loans for enterprises to expand their business or to overcome their fiscal crunch. The enterprises that are not able to give surety are provided term loans from Indifi.
- Bajaj Finserv
Bajaj Finserv is one of the top Non-Banking Financial Companies that provide business loans at a 17 percent interest rate. The business loans provided by them are mainly intended for self-employed professionals like doctors, architects, company secretaries, and chartered accountants. These professionals can get an easy business loan of up to 45 lakh INR without providing any surety or collateral.
About Mudra Scheme
Mudra is a loan scheme that was launched by the Government. This scheme provides a loan of up to 10 lakh INR for individuals and Micro Small and Medium Enterprises for starting a new business. Loans under this scheme are security free provided by financial institutes.
Important Mudra Loan Documents
- Completed application form with passport-sized photos of the applicant.
- Caste certificate if you belong to an SC/ST/OBC/Minority category.
- Bank account statements for the last six months
- Tenure proof and residential address.
Read about small business loans how to get a business loan in 6 steps and the steps to be followed in applying for a personal loan.https://articleocity.com/small-business-loans-how-to-get-a-business-loan-in-6-steps/
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