Export-oriented, A small scale industry unit can be known as export-oriented unit if it exports more than 50% of its production. Such type of units have the benefit like subsidy offered by the government.
The Ministry of MSME & ARI will bring out a specific list of hi - tech and export oriented industries which would require the investment limit to be raised upto ₹ 5 crores to admit of suitable technology up gradation and to enable them to maintain their competitive edge.
financial resources:
Loan from Bank: Commercial banks, generally extends short term to medium term loans to firms of all sizes and in many ways.
- Loans and Advances: A loan is a lump sum advance made for a specified period. Here, the entire amount is paid to the borrower in lump sum either in cash or by way of transfer to his account.
- Term Loan: These loans are extended by the banks to their customers for fixed period to purchase:
- Machinery.
- Trucks, Scooters.
- Houses, etc.
The borrower repays these back in monthly/ quarterly/ half yearly/ annual installments.
Loans from Financial Institutions: Institutional finance refers to institutional sources of finance to Industry, other than commercial banks. These institutions are established by the Central/ State Government.