Under which scheme small entrepreneurs can get loan at concessional rate of interest?
Answers from top 13 papers
More filters
| Papers (13) | Insight |
|---|---|
| Moreover, small business loan interest rates depend more on the size structure of the market than on the size of the bank providing the credit, with markets dominated by large banks generally charging lower prices. | |
| The paper concludes that a small credit can help micro entrepreneurs to boost up their business. | |
| Based on a Chinese nationwide survey, our analysis suggests that entrepreneurs who contribute to charities are more likely to be successful in loan applications. | |
37 Citations | Concessional loans are useful in improving outreach without affecting financial results. |
103 Citations | Empirical analysis suggests that a legislative membership helps entrepreneurs get access to bank loans; and it may be more useful for small and medium enterprises. |
22 Citations | We first find that founding family firms can enjoy favorable loan contracts in terms of loan spread. |
| This exploratory study, using a sample of 115 new bank loans to small owner-managed firms, demonstrates that a simple categorical pricing model can explain a substantial part of the variation in interest rate premia. | |
| The authors offer the hypothesis that solution to this problem requires development of agribusiness, a perspective tool of which is concessional lending. | |
20 Dec 2010 30 Citations | This paper will interest policymakers to place more emphasis on savings mobilization and to revisit interest rate policy, while providing cheap and adequate credit to small and poor farmers. |
215 Citations | A formal model, which grants borrowers autonomy in credit application and use, demonstrates that adverse incentive and selection effects may cause banks to endogenously impose interest rate restrictions and ration small farms out of the credit market. |
| Further, the article argues that banks charge lower interest rates if the loan manager perceives the entrepreneur to be competent. | |
| The recommendations are, the amount of loan advanced to women entrepreneurs be increased so that they can have adequate capital, loan beneficiaries be trained and advised to have other income generating activities so as to avert diversion of loan funds for other purpose. | |
| The study suggests rebate should be given to the good borrowers to encourage them to repay their loan on schedule without delay and the establishment o f a formal specialized microfinance banking institution to cater for the financial needs of micro and small entrepreneurs, especially in Malaysia. |
Related Questions
Dont borrow money for micro and small enterprises5 answersBorrowing money for micro and small enterprises (MSEs) can be a complex decision influenced by various factors. Research indicates that MSEs often face challenges in accessing financial markets, with some preferring Informal Financial Institutions (IFIs) over Microfinance Institutions (MFIs) due to flexibility issues. Additionally, MSEs in China have shown a willingness to borrow from Internet Financial Services (IFS) post-COVID-19, with their beliefs about IFS advantages and disadvantages impacting this decision. Moreover, MSEs in China may benefit from a coalition framework involving banks, MSEs, and large companies to ensure fair lending strategies and sustainable financing for MSEs' growth. However, it is crucial for MSEs to understand the terms of Micro Business Credit agreements to avoid defaulting and facing potential losses. Ultimately, while borrowing can be beneficial for MSEs' growth, careful consideration of the terms and options available is essential.
How does large and small loan amount affect the SMEs growth?5 answersLarge and small loan amounts have varying impacts on the growth of Small and Medium Enterprises (SMEs). Research suggests that policy-based credit supply, which can include both large and small loan amounts, increases investment, employment, and asset value for SMEs, leading to higher long-term growth rates. Large banks, due to their multi-office structures, may find it costly to invest in relationships with SMEs, while smaller banks with flatter organizational structures tend to have advantages in loan monitoring and officer discretion. Factors such as the business environment, regulatory influences, and lending technologies also play crucial roles in determining the supply of credit to SMEs, impacting their growth potential. Understanding the dynamics of loan amounts and their effects on SME growth is essential for addressing the financing gap that hampers SME development.
Does the Interest rates charged affect the loan assessment for start-up entrepreneurs?3 answersThe interest rates charged do affect the loan assessment for start-up entrepreneurs. Venture capital (VC) plays a crucial role in providing risk capital to ventures and stimulating entrepreneurial activities, which in turn can boost economic growth. In the case of microcredit loans, the liberalization of the usury rate in Colombia led to an increase in credit access for entrepreneurs, with the number of new loans and the total loan portfolio expanding as the microcredit lending rate increased. Loan guarantee programs, such as the one implemented in France, have been found to be effective in helping young firms grow faster in terms of employment and capital, although there is a potential drawback of guaranteed ventures adopting riskier strategies. Therefore, the interest rates charged can have a significant impact on the loan assessment and access to credit for start-up entrepreneurs.
How does the interest rate charged affect the loan assessment for start-up entrepreneurs?5 answersThe interest rate charged has an impact on the loan assessment for start-up entrepreneurs. Higher interest rates are associated with a stronger business capacity and multiple loans, while lower interest rates are linked to cheaper borrowing costs and potential riskier strategies. In the case of microcredit loans in Colombia, the lifting of the interest rate ceiling led to an increase in loan expansion, with each percentage point lift resulting in a 4.5% increase in new loans and a 3.7% increase in the total loan portfolio. Loan guarantee programs in France also show that lower interest rates allow firms to pay cheaper interest rates, but there is a potential drawback of riskier strategies and increased bankruptcy filings. The interest rate charged is a crucial factor in the development and success of small loans, particularly in poor areas.
Where do micro small businesses borrow money?3 answersMicro small businesses borrow money from various sources. Traditional banks have been the traditional source of capital for small businesses, but the lending process can be time-consuming and frustrating for borrowers. However, in developing economies, micro entrepreneurs have little access to the formal financial system, leaving them without access to formal financial services. After the global financial crisis, the need to address the challenge of accessing finance for small and medium enterprises (SMEs) became more pronounced, as SMEs are seen as engines of growth and job creation. In the United States, small businesses have increasingly turned to fintech lenders, nonbank lenders that are largely unregulated, for their credit needs. Additionally, micro credit companies tend to provide services to small enterprises and large farmers, offering short-term and noncredit loans with higher interest rates than commercial banks.
Under which Yojana small entrepreneurs will able to avail loans?12 answers