Practicing Success

Target Exam

CUET

Subject

Entrepreneurship

Chapter

Resource Mobilisation

Question:
Laja started her business of making dosa batter from her home in Delhi during her free time and started selling the same to households in her area. The batter was a huge success as the quality was good and according to the taste of the target market. She decided to make it into a full time business. Her entire family supported the venture. She approached few family members and friends who lent her around Rs.1.5 lakh. With that money she purchased some machinery and took a small space on rent to start producing the batter. Her batter in the name of ‘Taste of South’ was a huge hit in the market. Within a span of few years her business grew double fold. She was talking about her successful venture to her brother who is also a chartered accountant. He suggested her that she should improve her business model so that it will enable mass production. They analysed that they will have to make a list of all pros and cons of increasing the business. Keeping this in mind, her brother prepared a document which described formally the relevant external and internal elements involved in starting the venture on a large scale. Laja approached the bank for financial help.
Identify which bank among the following will be able to provide a loan to laja.
Options:
SIDC
NABARD
IIBI
None of the above
Correct Answer:
SIDC
Explanation:
The main functions of SIDCs is to providing term finance to all small, medium, and large industrial enterprises.