Hello Devaiah,
It gives me immense pleasure to note that you are interested in becoming an entrepreneur.
As you are aware, for every business, you need capital, and that resource should not cripple you in any worst-case scenario.
As per RBI directions, banks can lend a loan amount of up to 5 lakhs to set up a small-scale industry (SSI) without any collateral securities.
You need to register your industry at your district industries center, which may cost you Rs 100. Then, prepare a project report and approach any bank. Usually, all bank managers are prejudiced and have little technical knowledge. The first thing they will do is discourage you from doing business and suggest seeking employment. They may also scare you by telling all kinds of stories. These bank officials tend to disburse loans to medium-volume industrialists with a good track record of significant outstanding liabilities to the bank (This is the root cause of our industrial problems). Never listen to these naysayers; go ahead with your plans. You can also acquire land for your SSI from a local industrial area at a reasonable price. Repayment of the loan starts from the 12th month after production, and your product may also enjoy concessions in ST, CST, AST, or VAT.
The district industry center can also help you get trained in specialized projects.
Find a suitable market and sell your product.
In case of any unfortunate event, you can file your case with BIFR or SIFR, who will review your case and may waive off some of your liabilities to the bank.
The Indian Government has provided enough plans to support the flourishing of SSIs, but some officials, such as bank managers, hinder India's progress.
So, go ahead and set up a small-scale industry.
Remember, the SINTEX water tank company started its business as an SSI.
Karunadasp