What is the cost of borrowing money?
The cost of borrowing money depends upon the size of loan required. Lesser the amount of loan, lesser is the cost of borrowing. Normally, loans involving an amount of Rs. 25,000/- are available at a rate of interest of about 12.5 %. For loans of higher amount upto Rs. 2 lakhs, the rate may be 13-14% and for amount higher than that, it may be 3-4 % more.
Rate of Interest The cost of borrowing money depends upon the size of loan required. Lesser the amount of loan, lesser is the cost of borrowing. Normally, loans involving an amount of Rs. 25,000/- are available at a rate of interest of about 12.5 %. For loans of higher amount upto Rs. 2 lakhs, the rate may be 13-14% and for amount higher than that, it may be 3-4 % more. 19. What is the procedure for getting a loan? An entrepreneur should approach the concerned finanical institution Application in prescribed proformae has to be submitted along with project report. 20. How is a Project Report prepared? A project report is prepared with the help of prescribed guidelines available industries department & financial institutions. Information about prices of machinery & equipment, raw material and other various inputs required for setting up an enterprise need to be collected from the market. 21. Is there any standard model for preparing the project report? Every financial institution has its
