The Textile Industry’s Contribution How to Get a Loan for a Textile Company
What if I told you that India boasts one of the world’s oldest textile industries. Indian textiles have piqued the interest of middle-eastern and western cultures throughout history. Textile exports now ConsolidationNow account for over 11% of the country’s total exports, and the textiles sector employs millions of people. There are around 40 million employees in the textiles business, with another 60 million indirectly involved.
India’s textile industry is divided into many categories. The unstructured component, which comprises handloom, handicraft, and sericulture, is the first. These are run on a smaller scale and are often made using traditional equipment and processes. Then there’s the more organized part, which comprises spinning, clothing, and garment production for both domestic and foreign customers. In this section, manufacturing is predicated on the utilization of modern technology and methods such as economies of scale.
The Indian textiles sector is valued USD 108 billion now, and is predicted to grow to USD 223 billion by 2021. Aside from employing an estimated 100 million people, the sector provides around 5% of the country’s Gross Domestic Product and 14% of the country’s Index of Industrial Production. The sector is now seeing an increase in investment and market activity. Between April 2000 and March 2016, the sector garnered USD 1.85 billion in foreign direct investment. The Indian government has also introduced many export promotion measures for the business, including an automatic regulation that allows up to 100 percent FDI in the sector. In the state of Andhra Pradesh, there are also proposals to build India’s first integrated textiles city.
The Textiles Industry in India: The Road Ahead for Small and Medium Enterprises
The Indian textile industry, both large-scale and small-scale, has a promising future. Domestic consumption has risen significantly, and export demand seems to be high as well. More new foreign firms are projected to join the market as middle-class consumption and discretionary income continue to increase. Marks & Spencer, Guess, and Next, for example, have all opened stores in India in the previous decade. Nearly a 10-year period, India’s organized clothing market is predicted to increase at a compound annual growth rate of over 13%. E-commerce is also beneficial to the SME category, which mostly trades in handloom, handicraft, and sericulture. Several online platforms have emerged in recent years to promote indigenous textiles and aid in the expansion of their client base in India and overseas.
Obtaining a financing for a textile company
If you operate a small textile company, you may take advantage of a number of government programs, such as the collaboration between the Department of Handlooms and Textiles and nine e-commerce companies and 70 merchants to expand the reach of handloom items. It will help SMEs in the textiles industry get better rates and more consistent business, as well as provide tiny weavers direct access to markets and customers.
- The Revised Restructured Technology Upgradation Fund Scheme (RRTUFS) now includes production of significant machinery for technical textiles for a 5% interest reimbursement and a 10% capital subsidy, in addition to the 5% interest reimbursement for selected technical textile equipment.
- The Scheme for Integrated Textile Parks (SITP) offers a 40 percent subsidy (up to 40 crores) for the construction of infrastructure in the parks.
- The principal equipment used in the manufacture of technical textiles is subject to a 5% customs tax reduction.
- The Focus Product Scheme covers a limited number of technical textile items. These items are eligible for a duty credit scrip equal to 2% of the freight on board (FOB) value when exported.
Apart from these advantages, if you want financial support, you can always ask for a small business loan for your textile firm. Non-banking financial organizations such as Lendingkart Finance are now giving prospective small and medium enterprises immediate business loans of up to 2 crores. These RBI-approved small company loans are quicker and simpler to secure than bank loans. The following are some of the key elements of these small business loans for textile businesses:
These small business loans for textile firms include the following features:
- Ticket prices range from 50,000 to 2 crores.
- Quick turnaround time of as little as three days is possible.
- Application, approval, and tracking are all done online.
- Interest rates that are tailored to your credit profile.
- Monthly or bi-weekly installments provide flexibility in repaying.
- A repayment term of one to twenty-four months is available.
- There is a 1% to 2% processing fee and no extra fees.
- There are no fees if you pay in advance.
- Following complete repayment, the loan is renewed for the same amount.
As you can see, the ticket size and payback window make these loans perfect for a variety of commercial tasks including purchasing equipment, refilling inventory, managing working capital, and expanding your firm. A Lendingkart small business loan may be used to fund any or all of the key company activities that need urgent funding. The loan application procedure is simple and takes no more than 15 minutes to complete. To get started, go on www.lendingkart.com or download the Lendingkart Finance app to your Android device.