Business loans for ssi

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S R. Yadav (Querist)
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12 August 2011 Hi There!! I am a proprietor owning an SSI unit in Pune. My business is 14 months old. I want to expand my business and shall need finance from outside sources to further invest in fixed assets.I shall need about 50 lacs in phases.
My questions to experts are -
1. Should I apply for a business loan or should I apply for a 'Cash Credit Account'?
2. Which is the most reasonable source of finance for SSI's? I guess SIDBI is most helpful to SSI's but I need your suggestions.
3. Can anyone give me approximate interest rates charges to SSI fir business loan and Cash Credit Account?
4. Any sought of government scheme or subsidy provided by Govt of India that can be of great advantage?

Thanks,
Sanjay

Anand

Anand (Expert)
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15 August 2011 In case you need finance for capacity expansion by way of investing in fixed assets, you will be eligible for Term loan and not for Cash credit.
Rate of interest would be based on your business profile and Credit Rating.
Both State and Central Government provides subsidies to SSI units based upon type of industry you are in.