Funding Your Business

"Paise kahan se aaye?"

It's a Sunday afternoon, and seven people are sitting in Pushpa didi's chai shop in Rishikesh. The shop is closed for the day — she only opens on Sundays for "our people," as she puts it. Bhandari uncle is visiting from Haldwani. Rawat ji came down from Ranikhet for a medical check-up. Neema and Jyoti are passing through on their way back to Munsiyari. Vikram rode over from Dehradun on his bike. Ankita is here because Pushpa didi makes the best adrak chai in the state, and she won't argue about that.

Pushpa didi pours the third round of chai and asks the question that started it all:

"Sabko pata hai ki business shuru karna hai. But tell me — paise kahan se aaye? Like, really. Where did the money come from?"

The room goes quiet for a second. Then everyone starts talking at once.

This is the most practical chapter in this book. Ideas are free. Execution takes money. And the number one reason businesses don't start — or start and die within a year — is that the founder either didn't have enough money, took the wrong kind of money, or didn't understand what that money would cost them.

We're going to walk through every realistic funding option available to someone starting or growing a business in India — especially in Uttarakhand. Not just a list of scheme names. Actual steps. What works, what doesn't, and what our characters actually did.

1. Bootstrapping — Starting With Your Own Money

Pushpa didi speaks first. "Main batati hoon. When I started this chai shop six years ago, I had ₹47,000 in my savings account. That's it. ₹47,000."

She ticks off on her fingers: "₹8,000 for the first month's rent. ₹5,000 security deposit. ₹12,000 for the stove, gas cylinder, vessels, cups, a basic table and bench. ₹6,000 for the first stock of tea, milk, sugar, ginger, elaichi. ₹4,000 for a small signboard. And I kept ₹12,000 aside for emergencies."

"No loan. No scheme. Just my own money that I saved over three years working at a hotel kitchen."

This is called bootstrapping — starting a business with your own savings. No debt, no investors, no complicated paperwork. Just your money, your risk.

Why bootstrapping works for small businesses:

• You own 100% of your business. No one tells you what to do.
• No EMI pressure. If sales are slow one month, you tighten your belt — you don't default on a loan.
• You start small and grow only when you can afford to. This forces discipline.
• You learn to be resourceful. When every rupee is yours, you don't waste it.

The limits of bootstrapping:

• There's a ceiling. Pushpa didi couldn't have opened a restaurant with ₹47,000.
• Growth is slow. You reinvest profits, which means you grow at the speed your profits allow.
• One bad month can wipe out your reserves.

Bhandari uncle nods. "I also started with my own money — well, sort of. ₹80,000 from my savings and ₹1,50,000 that my older brother lent me. Interest-free. Took me two years to pay him back."

Borrowing from family and friends is the most common form of early funding in India. It works, but it comes with invisible costs — expectations, guilt, relationships at risk.

If you borrow from family:

• Write it down. Even if it's your brother. A simple written note — how much, when you'll return, any interest — protects both sides.
• Set a realistic repayment timeline. Don't promise "3 months" if you know it'll take 12.
• Keep them updated. A quick monthly message — "Business is going well, I'll start repaying from March" — goes a long way.
• Understand that this money comes with emotional strings. If business fails, the relationship can suffer. Borrow only what you can afford to lose.

2. Bank Loans

Vikram leans forward. "Main toh bank gaya seedha. I needed ₹18 lakh for my franchise. I had ₹6 lakh saved. My parents gave ₹4 lakh. That's 10. For the remaining ₹8 lakh, I took a MUDRA loan."

Neema looks surprised. "MUDRA loan? I've heard the name, but I thought that's only for very small businesses?"

"It is," says Vikram. "But 'small' is relative. They give up to ₹10 lakh."

MUDRA Loans — Pradhan Mantri Mudra Yojana

MUDRA is the most accessible loan program for small businesses in India. It's offered through banks, NBFCs, and MFIs. There's no separate application — you go to your regular bank and ask for a MUDRA loan.

Three categories:

Key facts:

• No collateral required (for loans up to ₹10 lakh under MUDRA)
• Interest rates: Typically 8-12% per year, varies by bank
• Repayment period: Usually 3-5 years
• Available through all public sector banks, most private banks, and many NBFCs
• Processing fee: 0.5% to 1% of loan amount

What you need to apply:

1. Identity proof (Aadhaar, PAN)
2. Address proof
3. Business proof — even if it's just an Udyam registration, a GST certificate, or a trade license
4. Bank statements (last 6 months)
5. A simple project report or business plan (the bank can help you make one)
6. Two passport-sized photos

What the bank looks at:

• Is the business real? Do you have any track record?
• Can you repay? They'll look at your cash flow — income vs expenses.
• Your CIBIL score — this is your credit history score. Above 700 is good. Above 750 is excellent. Below 650 makes it very difficult to get a loan.
• If you've never taken a loan or credit card before, you might not have a CIBIL score. That's not automatically a problem — some banks have alternate scoring for first-time borrowers.

Vikram's tip: "I went to SBI first. Got rejected. No reason given — just 'not approved.' Went to Bank of Baroda next. Same documents. Got approved in 14 days. Don't give up after one rejection. Different banks have different appetites."

MSME Loans

If your business is registered as a Micro, Small, or Medium Enterprise (MSME) under Udyam registration (free, online, takes 10 minutes at udyamregistration.gov.in), you unlock a whole range of loan products.

Benefits:

• Lower interest rates (often 1-2% less than regular business loans)
• Priority sector lending — banks are required to lend a certain percentage to MSMEs
• Faster processing
• Government subsidies on interest for some categories

CGTMSE (Credit Guarantee Fund Trust for MSMEs): This is a government guarantee scheme. If you're an MSME borrower and the bank gives you a loan under CGTMSE, you don't need to provide collateral for loans up to ₹5 crore. The government guarantees the loan to the bank.

This is a big deal. Most small business owners' biggest problem is: "Bank is asking for property as collateral, and I don't have property." CGTMSE solves this.

Term Loans vs Working Capital Loans

Two types of bank loans you'll hear about. They solve different problems.

Term Loan:

• One-time lump sum for a specific purpose — buying equipment, setting up a shop, purchasing a vehicle
• Fixed repayment schedule — monthly EMIs over 3-7 years
• Interest is calculated on the full amount
• Example: Vikram's ₹8 lakh loan to set up his franchise outlet

Working Capital Loan:

• Ongoing credit to manage daily business expenses — buying inventory, paying suppliers, covering salary until customer payments come in
• Usually structured as an overdraft (OD) or cash credit (CC) facility
• You use what you need and pay interest only on what you've used
• Renewed annually
• Example: Bhandari uncle's ₹3 lakh CC limit with his bank. He draws ₹1.5 lakh before season, stocks up on inventory, and pays it back as sales come in.

Bhandari uncle explains: "I have a CC account with PNB. ₹3 lakh limit. Before construction season starts in March, I draw ₹2 lakh, buy cement, pipes, wiring in bulk at good rates. As sales happen, money comes back. By June, my CC is usually zero. I pay interest only for those 3-4 months I actually used the money."

Which one do you need?

• Starting a business or making a big purchase → Term Loan
• Running a business and managing cash flow → Working Capital

Collateral and Guarantees

Let's be honest about the biggest hurdle: banks want security.

Collateral — property, fixed deposits, gold, or other assets you pledge against the loan. If you can't repay, the bank can seize these.

Personal guarantee — you sign saying that if the business can't repay, you personally will. This means your personal assets are at risk.

Third-party guarantee — someone else (often a family member) signs as a guarantor. Their assets become liable if you default.

For small loans (under ₹10 lakh through MUDRA, or up to ₹5 crore through CGTMSE), you can often avoid collateral. For larger loans, you'll almost certainly need it.

Warning: Never pledge your family home for a business loan unless you are absolutely certain about the repayment. "Absolutely certain" means you have existing, reliable revenue — not just hope. Businesses fail. You can restart a business. Losing your home is a different kind of loss.

3. Government Schemes

Government schemes for business funding are real. They work. But the gap between "scheme exists" and "money in your account" is filled with paperwork, bank visits, and patience. Let's go through the most relevant ones — and how to actually apply.

PM SVANidhi — Street Vendor Scheme

Pushpa didi raises her hand. "I got this! When COVID hit, everything shut down. When I reopened, I needed money for fresh stock. A customer told me about PM SVANidhi. I got ₹10,000 as a loan."

What it is: A micro-credit facility for street vendors.

Details:

• First loan: Up to ₹10,000
• Second loan (if you repay on time): Up to ₹20,000
• Third loan: Up to ₹50,000
• Interest subsidy: 7% on timely repayment
• No collateral required

Who qualifies:

• Street vendors with a vending certificate or letter of recommendation from the Town Vending Committee or ULB (Urban Local Body)
• Must have been vending before or on 24th March 2020

How to apply:

1. Go to pmsvanidhi.mohua.gov.in
2. Register with your mobile number and Aadhaar
3. Upload your vending certificate or recommendation letter
4. The application goes to your nearest bank branch
5. Bank verifies and disburses within 30 days (usually)

Stand Up India

What it is: Loans between ₹10 lakh and ₹1 crore for SC/ST and women entrepreneurs.

This is a powerful scheme and it's under-utilized. Each bank branch is mandated to give at least one loan to an SC/ST borrower and one to a woman borrower under this scheme.

Details:

• Loan amount: ₹10 lakh to ₹1 crore
• For setting up a new enterprise (manufacturing, services, or trading)
• The enterprise must be new (greenfield) — not for existing businesses
• Repayment: Up to 7 years with a moratorium period of up to 18 months
• Composite loan covering both term loan and working capital
• Collateral: Secured where possible, but CGTMSE cover available

Who qualifies:

• SC/ST entrepreneurs, OR
• Women entrepreneurs (any category)
• Must be 18+ years old
• Must not have defaulted on any bank loan before
• In case of a partnership, the SC/ST or woman applicant must hold at least 51% of the shareholding

How to apply:

1. Go to standupmitra.in
2. Register and fill the online form
3. You'll be connected to your nearest bank branch
4. Prepare: Aadhaar, PAN, caste certificate (if SC/ST), business plan, project report, quotations for machinery/equipment
5. Follow up in person at the bank branch. Seriously — don't just submit online and wait.

Neema says: "Jyoti and I are women. We had no idea this existed when we started our homestay. If we'd known, we could have gotten a ₹15-20 lakh loan instead of scraping together ₹8 lakh from savings and family."

PMEGP — Prime Minister's Employment Generation Programme

What it is: A credit-linked subsidy scheme. You get a bank loan, and the government gives you a subsidy (which you don't have to repay) on a portion of it.

This is essentially free money on top of your loan. Read carefully.

Details:

• For setting up new enterprises in manufacturing (up to ₹50 lakh) or services/trading (up to ₹20 lakh)
• Subsidy: 15-35% of the project cost (depending on your category and location)

Uttarakhand advantage: Most of Uttarakhand qualifies as a "hill state" area. That means even general category applicants from rural Uttarakhand can get 25% subsidy. And SC/ST/women from rural Uttarakhand get 35%.

Let's do the math for Rawat ji:

• He wants to set up an apple juice processing unit. Total project cost: ₹15 lakh.
• He's in Ranikhet — rural hill area.
• He's general category.
• His subsidy: 25% of ₹15 lakh = ₹3,75,000
• His own contribution: 10% = ₹1,50,000
• Bank loan: ₹15,00,000 - ₹3,75,000 - ₹1,50,000 = ₹9,75,000
• So he puts in ₹1.5 lakh of his own money, gets a ₹9.75 lakh bank loan, and ₹3.75 lakh comes as a grant. He repays only the bank loan.

Who qualifies:

• Any individual above 18 years
• For projects above ₹10 lakh in manufacturing and ₹5 lakh in services: must have passed 8th standard
• Existing units or units already availing government subsidy under other schemes are NOT eligible
• Must be a new unit

How to apply:

1. Go to kviconline.gov.in
2. Apply online with Aadhaar, project details, and education certificate
3. Applications are screened by the District Industry Centre (DIC) or KVIC/KVIB
4. If selected, you receive a recommendation letter for the bank
5. Bank processes the loan
6. Subsidy is parked in the bank account (in a Term Deposit) and is released after the business is running
7. Timeline: 2-6 months from application to disbursement (be prepared for delays)

Uttarakhand State Schemes

Mukhyamantri Swarozgar Yojana (MMSY):

• Loan up to ₹25 lakh for manufacturing and service sector businesses in Uttarakhand
• Subsidy of 25% (maximum ₹6.25 lakh) for general category
• Subsidy of 30% (maximum ₹7.50 lakh) for SC/ST/Women/PwD
• Apply through the District Industry Centre in your district

Deen Dayal Upadhyaya Gharkul Swarozgar Yojana:

• For return migrants and rural youth of Uttarakhand
• Subsidy on bank loans for small businesses

Uttarakhand MSME Policy incentives:

• Capital investment subsidy for units set up in Uttarakhand
• Stamp duty exemption
• GST reimbursement for specified periods

How to find out what's currently available: Schemes change. Go to your District Industry Centre (DIC). Every district in Uttarakhand has one. Walk in, ask: "Small business shuru karna hai, kaunsi schemes available hain?" They'll give you a current list. Also check industries.uk.gov.in.

4. Microfinance and Self Help Groups (SHGs)

Neema puts her chai down. "You know how we actually started our homestay? Not through a bank loan. Through our SHG."

"Self Help Group," Jyoti adds. "There are 11 women in our group in Munsiyari. We've been saving ₹500 each per month for four years. That's a fund of ₹2,64,000. When we needed money to start converting our house into a homestay, we took a loan of ₹1,50,000 from the group fund at 1% monthly interest."

"1% per month is 12% per year," Bhandari uncle points out.

"Yes," says Neema. "But try going to a bank in Munsiyari as two young women with no income proof and no collateral. What interest rate will they give you? We know the answer. They won't even give you the application form."

Self Help Groups (SHGs) are one of the most powerful funding mechanisms for women entrepreneurs in India, especially in rural and semi-urban areas.

How SHGs work:

1. 10-20 people (usually women) form a group
2. Everyone saves a fixed amount monthly (₹100 to ₹2,000 depending on the group)
3. After 6 months of regular saving, the group opens a bank account
4. Members can borrow from the group fund at interest rates decided by the group
5. After a track record of regular savings and internal lending, the group becomes eligible for bank linkage — banks will lend to the SHG at subsidized rates
6. Under DAY-NRLM (Deendayal Antyodaya Yojana - National Rural Livelihood Mission), SHGs can access:
   • Revolving fund of ₹10,000-15,000 per SHG
   • Community Investment Fund (CIF) up to ₹2,50,000
   • Bank linkage loans — first round up to ₹6 lakh, second round up to ₹10 lakh, further rounds up to ₹20 lakh

Why this matters in Uttarakhand:

• Many remote areas have limited bank access
• Women often lack individual collateral and formal income proof
• SHGs provide peer support and accountability
• ULIPH (Uttarakhand Livelihoods Improvement Project) has established thousands of SHGs across the state

Microfinance Institutions (MFIs): If you're not part of an SHG, MFIs offer small loans (₹10,000 to ₹1,00,000) to individuals, usually in groups.

Caution: MFI interest rates are higher — typically 20-26% per year. Borrow from MFIs for productive purposes (inventory, equipment) and repay quickly. Don't borrow from MFIs for non-business needs.

5. Angel Investors

Priya (over video call on Ankita's phone — she's in Bangalore): "Mere liye funding ki kahani alag hai. My agri-tech app connects pahadi farmers to buyers. I couldn't bootstrap this — building an app, running servers, hiring developers. I needed ₹25 lakh just to build the first version."

"So what did you do?" asks Rawat ji.

"I found angel investors. Two people who believed in the idea and put in ₹12 lakh each."

Angel investors are individuals — usually experienced business people — who invest their personal money in early-stage businesses, typically startups.

How it works:

• They give you money (usually ₹5 lakh to ₹50 lakh at early stage)
• In return, they get a percentage of ownership (equity) in your company
• They don't get monthly payments. They make money only if your company grows and eventually becomes valuable — through a sale, acquisition, or IPO
• They often provide mentorship, introductions, and business advice in addition to money

The trade-off: You don't pay interest. But you give up a piece of your company. If Priya gave 20% equity for ₹24 lakh, and her company is later worth ₹10 crore, those investors own ₹2 crore worth — far more than any loan interest would have cost.

Where to find angel investors:

• Indian Angel Network (IAN) — India's oldest angel network
• Mumbai Angels, Hyderabad Angels, Calcutta Angels — regional networks
• AngelList India
• Startup Uttarakhand events and communities
• LinkedIn — many angels are active there. But approach with substance, not just a pitch.

Angel investing is relevant if:

• Your business needs significant upfront capital before it can generate revenue
• You're building something that can scale — a tech product, a platform, a brand
• You need expertise and connections along with money

Angel investing is NOT relevant if:

• You're opening a shop, a restaurant, or a local service business. Banks and government schemes are better for this.
• You need ₹2-5 lakh. Angels typically don't invest amounts this small.

6. Venture Capital — The Basics

Ankita asks Priya: "And what's after angel investors? I keep hearing about VC funding."

Priya explains: "Venture Capital is the next level. VCs are firms — not individuals — that manage large pools of money. They invest in companies that can grow really, really fast."

What Venture Capital is:

• VC firms raise money from big investors (called Limited Partners — pension funds, wealthy individuals, other institutions)
• They invest that money into startups they believe can grow 10-100x
• In return, they take equity (ownership) — usually 15-30% in each round
• They actively participate in the business — board seats, strategy guidance, hiring help

The rounds:

Equity dilution — explained simply:

"Let's say my company is worth ₹1 crore right now," Priya explains. "I own 100%. A VC invests ₹50 lakh and we agree the company is now worth ₹1.5 crore. The VC's ₹50 lakh is 33% of ₹1.5 crore. So now I own 67% and the VC owns 33%."

"But I didn't lose any money. My 67% of ₹1.5 crore = ₹1 crore. Same as before. I just have a partner now."

"The risk is — what if the company doesn't grow? Then I gave up 33% of something that's still worth only ₹1 crore. My share is now only ₹67 lakh. I lost ₹33 lakh of value."

For most readers of this book, VC funding is not relevant. It exists for a very specific type of business — high-growth, scalable, usually tech-enabled. We're including it so you understand the landscape, not because everyone should chase it.

7. Crowdfunding

Ankita says: "I thought about crowdfunding once. For my pahadi food brand. I almost listed on Ketto."

"Why didn't you?" asks Pushpa didi.

"Because I realized it works well for a cause or a creative project. For a regular product business, it's harder. People fund a mission, not just a product."

Types of crowdfunding:

Reward-based: People give money and get a product or experience in return. Platforms: Ketto, Milaap, Indiegogo.

• Works for: Unique products, creative projects, community-driven businesses
• Example: "Fund my pahadi food brand and get a hamper of 5 products when we launch"

Donation-based: People give money for a cause.

• Works for: Social enterprises, community projects
• Example: "Help us build a community kitchen in Pithoragarh"

Equity crowdfunding: People invest money and get shares. This is regulated and not widely available in India yet.

Peer-to-peer (P2P) lending: Platforms that connect borrowers directly with lenders. Platforms like Faircent, LenDenClub. Interest rates vary (12-30%).

Crowdfunding works when:

• You have a compelling story
• Your product or mission is unique
• You have an existing audience (social media following helps enormously)
• You can create an engaging campaign with photos, video, clear messaging

8. How Much Money Do You Actually Need?

Bhandari uncle slaps the table gently. "Yeh sab scheme-veam theek hai. But the real question is — kitna chahiye? Main bahut logon ko dekhta hoon jo ₹20 lakh ka loan lete hain jab unhe ₹5 lakh chahiye. Phir EMI bharne mein mar jaate hain."

This is the most common funding mistake: not calculating how much you actually need.

The two dangers:

Under-raising: You start with too little, run out of money in month 3, and the business dies — not because the idea was bad, but because you starved it of cash.

Over-raising: You take more than you need, spend it on things that don't matter, and get stuck with EMIs that your business can't support.

How to calculate what you need:

Step 1: List your one-time setup costs

Step 2: Calculate your monthly running cost

Step 3: Multiply monthly costs by 6

Yes, six months. Assume you'll earn zero revenue for the first 3 months and partial revenue for the next 3. You need enough runway to survive until the business finds its feet.

Total funding needed = Setup costs + (Monthly costs x 6)

Vikram did this math when planning his franchise:

• Franchise fee: ₹6,00,000
• Shop setup and renovation: ₹4,50,000
• Equipment (ovens, counters, POS): ₹3,00,000
• Initial inventory: ₹1,50,000
• Licenses and compliance: ₹50,000
• Working capital for 6 months: ₹2,50,000

Total: ₹18,00,000

He had ₹6 lakh. Parents contributed ₹4 lakh. MUDRA Tarun loan: ₹8 lakh. Exact fit.

9. The Real Cost of Different Types of Money

Not all money is the same. Here's what different types of funding actually cost you:

The golden rule: Use the cheapest source first. Your own money → government subsidies → bank loans → everything else.

"Suno," Bhandari uncle says to the group. "₹1 lakh at 12% interest for 3 years means you pay back about ₹1,20,000 total. Manageable. But ₹1 lakh from an angel investor who takes 20% of your business — if your business is worth ₹50 lakh someday, that 20% is ₹10 lakh. You 'paid' ₹10 lakh for a ₹1 lakh investment. Equity is the most expensive money. Use it only if there's no other option and you need the investor's expertise, not just their money."

10. Vikram's Full Funding Story

"Okay, let me tell you the whole story," Vikram says. "Because it wasn't as smooth as '₹6 + ₹4 + ₹8 = ₹18.'"

"I found the franchise opportunity in 2022. The brand I liked needed ₹18 lakh total investment. I had ₹6 lakh in savings — took me 4 years to save that from my job at an electronics store in Dehradun."

"First, I asked my parents. They had ₹4 lakh in a fixed deposit. My mother was very nervous. 'Pura paisa doob gaya toh?' she said. I told her: 'I'll sign a paper that I'll return this in 2 years, whether the business works or not.' That paper is still in my mother's locker."

"Then I went to PNB for a MUDRA Tarun loan. I had my Udyam registration, my franchise agreement, quotations for everything, 6 months of bank statements, my PAN and Aadhaar. The manager said, 'Your CIBIL score is 710 — okay but not great. Do you have anyone to guarantee?' My father came as guarantor."

"Loan was sanctioned in 3 weeks. ₹8 lakh at 10.5% interest, 5-year repayment. EMI: ₹17,200 per month."

"But here's the thing no one tells you: the first three months, I had barely any customers. My EMI was ₹17,200 and my revenue was ₹35,000-40,000. After rent, staff, inventory — I was paying the EMI from my savings. Those savings started drying up."

"Month 4, things picked up. Month 6, I was stable. Month 9, I was comfortable. But those first three months? I didn't sleep properly. If I hadn't kept that ₹2.5 lakh working capital buffer, I would have defaulted on my EMI."

Lessons from Vikram:

1. ₹18 lakh came from three different sources — that's normal
2. Even with perfect planning, the first months are rough
3. Working capital buffer saved his business
4. The EMI doesn't care about your bad months — it's due every month
5. His mother's concern was valid. He addressed it honestly.

11. Common Funding Mistakes

After talking to hundreds of small business owners across Uttarakhand, here are the mistakes we see again and again:

1. Taking a personal loan instead of a business loan Personal loans have higher interest rates (14-24%) and shorter repayment periods. Business loans (especially MUDRA and MSME) have lower rates and longer tenure. Always apply for a business loan first.

2. Not knowing about government subsidies Rawat ji could have gotten 25-35% of his project cost as a grant through PMEGP. Instead, he took a full bank loan. That's lakhs of rupees left on the table. Before taking any loan, visit your District Industry Centre and ask about subsidies.

3. Borrowing from moneylenders Interest rates of 3-5% per month (36-60% per year). This is a debt trap. Almost any other option — bank loan, MFI, SHG, even selling an asset — is better than a moneylender.

4. Using business money for personal expenses Your business loan is for business. The moment you start using it for personal expenses — a wedding, a medical emergency, home renovation — your business is underfunded and your loan repayment is at risk. Keep the accounts separate.

5. Not having a repayment plan "Paise aa gaye, ab sochenge" is not a plan. Before you take any loan, know exactly: how much is the EMI, what monthly revenue do you need to cover that EMI comfortably, and what happens if revenue is 50% lower than expected for 3 months?

6. Giving up too much equity too early If you're on the startup path and raising from angels or VCs — don't give away more than 15-20% in your first round. You'll need to raise more later, and each round dilutes you further. If you give 40% in round one, you might own less than 30% of your own company by round three.

7. Ignoring your CIBIL score Check your CIBIL score at cibil.com (one free check per year). If it's below 650, work on improving it before applying for a loan. Pay off old credit card dues. Clear any outstanding small loans. A good CIBIL score is like a good reputation — it takes time to build and a moment to ruin.

8. Not reading the loan agreement Read every page. Know the interest rate (is it fixed or floating?). Know the prepayment penalty (some banks charge you for repaying early). Know what happens if you miss an EMI. If you don't understand something, ask the bank officer to explain in simple Hindi. It's your right.

Quick Action Checklist

If you're starting a business and need funding, do these things this week:

• Check your CIBIL score at cibil.com
• Complete your Udyam MSME registration at udyamregistration.gov.in (free)
• Visit your District Industry Centre and ask about available schemes
• Calculate your total funding need (setup cost + 6 months running cost)
• List what you can contribute from your own savings
• Identify the gap — and match it with the right funding source
• Prepare your documents: Aadhaar, PAN, bank statements, project report
• Talk to at least 2-3 bank branches. Different branches, different experiences.

The chapter in one line

Pushpa didi stands up to wash the cups. "Paise milte hain," she says. "You just have to know where to look, what it costs, and how much you actually need. Usse zyada mat lo. Usse kam bhi mat lo."

She's right. Money is a tool. Get the right amount, from the right source, at the right cost. That's it.

In the next chapter, we put all of this money to work. You've got the funding — now what? How do you actually set up your business legally? Registration, licenses, GST, FSSAI — the paperwork that turns an idea into a real, legal entity.