India is home to one of the oldest textile industries in the world. Today, textile exports contribute to approximately 11 percent of the total export of the country. The textile industry provides employment to millions of people in the country. Due to the growing economy, the future of the Indian textile industry appears to be bright. Moreover, the large scale textile industries and Small and Medium Enterprises (SMEs) have established their foothold in the Indian market. Several online platforms have come up to promote the domestic textile industry and expand its customer reach in India and abroad. Keeping all these factors in mind, the Government of India has also launched several schemes to support the textile industry financially, thereby encouraging its growth and development.
So, if you are an entrepreneur in the textile industry, you can benefit from a wide range of government initiatives mentioned below:
- The Department of Handlooms and Textiles has tied up with nine e-commerce players and 70 retailers in order to increase the reach of handloom products in the Indian market. This will facilitate direct access to markets and consumers for weavers. Also, it will help in generating better prices and continuous business.
- The scheme for Market Development Assistance (MDA) provides financial aid for a wide range of export promotion activities implemented by Textiles Export Promotion Councils.
- The Government of India has also proposed to extend 24/7 customs clearance facility at 13 airports and 14 sea ports. This would result in faster clearance of import and export cargo.
- The Scheme for Integrated Textile Parks (SITP) provides financial assistance for setting up infrastructure in the textile parks. The scheme has a limit up to Rs. 40 crores
Apart from these benefits provided by the Government, you can also consider applying for a small business loan to ensure smooth functioning of your textile business. Nowadays, with the help of leading banks, NBFCs and other online lenders, availing a small business loan has become a hassle-free process. Most financial institutions may check your personal as well as business credit score before approving your small business loan. A high credit score can also help you avail a comparatively higher loan amount at a reduced business loan interest rate. Therefore, it is essential that you boost your credit score before applying for a small business loan.
While availing a small business loan, you should make a note of all the important features associated with it. Some of the salient features of small business loans for a textile business are mentioned below:
- High loan amount
- Online application, Instant approval, and quick disbursal
- Online loan tracking through a customer portal
- Customized interest rates to match your credit profile
- Flexible repayments options
- Less processing fee and no hidden charges
- Zero-prepayment charges
Now that you are well aware of various financing options for a textile business, ensure that you make the most of it by choosing the one that best suits your needs. If you happen to avail a small business loan, do not forget to read its terms and conditions carefully.