Entrepreneurship Development & Small Business

Management

› Presentation By:
 Abhishek Neogi
 Rajmohan gupta
 Hardik Shah

Financial Assistance
Financial Assistance

Financial Assistance
 Financial Assistance
 Financial assistance is the most prominent aspect for the any nation
because like India scarcity of finance and the financial institution , bank,
Non-Financial institution provide the such kind of services for the nation
growth in terms of industrial growth and also provide job opportunity so
that we can reduces the unemployment ratio of the country and to
promote the entrepreneurial activity in the country .
 Starting a business with limited funds requires a different strategy and
approach than launching a well-capitalized venture
 Raising big money requires carefully market research, well thought out
business plans, top- notch founding teams, sagacious boards, quarterly
performance reviews, and devilishly complex financial structure

Financial Assistance
 Types of financial Assistance
 Direct financial assistance
› Seed capital
i. Special seed capital assistance scheme
ii. Seed capital assistance scheme
iii. Risk capital foundation scheme

› Venture Capital
› Public Deposit
› Share capital/Debenture
› Bank Loan
› Foreign Currency Loan
› Lease Finance

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 Indirect Financial Assistance
› Deferred Payment guarantee
› Guarantee for Foreign currency Loan
› Underwriting
› Factoring and forfeiting

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Loan Procedure
Submission of Loan Application

Initial Processing of Loan Application

Appraisal of the proposed Project

Issue of the letter of the sanction

Acceptance of the term & condition by the borrower

Execution of Loan Agreement

Disbursement of Loan

Creation of Security

Monitoring
Financial Assistance
 Mortgage
 A Mortgage is the evidence of a property to a lender as a
security for a mortgage loan while a mortgage in itself is not
a debt, it is a evidence of a debt . It is transfer of an interest in
land , from the owner to the mortgage lender, on the condition
that this interest will be returned to the owner of the real
estate when the term of the mortgage have been satisfied or
performed . In other words , the mortgage is a security for
the loan that the lender makes to the borrower.

Financial Assistance
 The main function of the mortgage is to provide security to the lender .
Given the large sum of money involved in financing a property , a
mortgage lender will usually want security for the loan that will provide a
claim upon that security and will take precedence over the creditors. A
mortgage accomplishes the security.

 The lender loans the money and registers the mortgage against the title to
the property . The borrower gives the lender the mortgage and security for
the loan, receives the fund , makes the required payment and maintains
possession of the property. The borrower has the right to have the
mortgage discharge from the title once the debt is paid . If the mortgager
fails to repay the loan according to the conditions set , forth by the
lender ,then the mortgage reserves the right to foreclose on the property.

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 Hypothecation
 The original use of the word hypothecation was for a pledge of property
as collateral for a debt without transfer of possession to the party making
the loan. The arrangement is common with the modern mortgages-the
borrower retains legal ownership of the property but provides the leader
with a lien over the property until the debt is paid off.
 Hypothecation is a transaction were a person borrows money from a
financier against a security of a movable asset. The security belongs to the
borrower and remains in his possession during the repayment period. If
the borrower fails to repay the loan, the financier can claim the
hypothecated asset after obtaining court order.
 Generally banks and other financial institution provide loans on
hypothecation. The hypothecation agreement should be on a stamp paper
worth Rs.10/- irrespective of the value of asset.

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 Flash Report
 Flash report contains forward-looking statement that are based current
expectation, assumption , estimate and projection about its business, industry and
capital markets around the world. These forward- looking statement are subject to
various risk and uncertainties .Generally ,this forward- looking statements can be
identified by the use of forward –looking terminology such as “may”, “expect”,
“anticipate”, “plan” or similar words. These statement discuss future expectation ,
identify strategies , contain projection of result of operations or of financial
condition ,or state other forward- looking information.
 Known or unknown risk, uncertainties and other factor could cost actual result to
differ materially from those content in any forward- looking statement .

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 Important risk and factors that could cause actual result to be materially
different from expectation include, but are not limited to:
› Expenses, liability , loss of revenue or adverse publicity associated with
property or casualty losses
› Economic downturn , deflation and population decreases ;
› Services improvement , price reduction and other strategies undertaken by
compotator such as passenger railway and airline companies ;
› Earthquake and other natural disaster risk ;and
› Failure of computer telecommunication systems disrupting railway and other
operations

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 Thank You
For your valuable time

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