A current account counts as one of the primary considerations for any small business in India. With various private and public sector banks offering the option of opening a zero-balance current account, micro-small-and-medium enterprise (MSME) owners can easily opt for one.
The value of having a zero-balance current account is something that is not talked about enough. In this article, we give you some of the most significant benefits of having a zero-balance current account for your MSME. But first, let’s understand what a zero-balance current account is.
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Understanding the Zero-balance Current Account
A zero-balance current account is a type of deposit account that is accessible to the account owner as per their requirement, mainly for businesses. A zero-balance current account can be accessed more times in a day and for a larger number of transactions than personal accounts. Moreover, it has a very high limit in terms of the amount that can be transferred or received. This makes it one of the best options for small business owners.
Zero Balance Current Account: The Benefits for MSMEs
- No Minimum Balance - Routine transactions can be seamlessly handled without any concern about maintaining a certain amount of balance in the account. This is an excellent way for MSMEs to increase their cash flow without worrying about low balance penalties.
- No Limit on Transaction - A zero-balance current account has no limit on the transaction amount, allowing you as a small business owner to undertake trading or purchase decisions with ease. Kinara Capital can disburse a collateral-free business loan of up to Rs 30 lakhs directly in the zero-balance current account within 24 hours.
- Free Netbanking - Despite facilitating such hefty transactions, a zero-balance current account offers you robust security for all your business transactions and direct access on your mobile app. It also gives you real-time access to your transaction history.
- Other Benefits - While engaging in business activities, you may receive large payments for servicing a big order. A zero-balance current account can easily receive any payment amounts without any delay in credit. Moreover, some zero-balance current accounts can receive money in foreign currencies as well.
Documentations Required to Open a Zero-balance Current Account
In order to open your zero-balance current account, you will need to present a few documents. Here is a list of things that you should keep handy:
- PAN card
- Passport-size photograph
- Certificate of incorporation
- Address proof of business
- Utility bill of work premises
- Partnership deed (if the business is run with a partner)
In order to deposit cash into your zero-balance current account, all you need to do is carry the cash amount, walk into your nearest branch and fill in the deposit slip. Withdrawals can also be made through a similarly simple process; however, a lot of financial institutions now allow zero-balance current account holders to withdraw money using debit cards as well.
Effective Business Support with Kinara Capital
We have positively impacted over 1 million lives by making capital easily accessible to MSMEs. We are dedicated to driving financial inclusion and economic prosperity for the MSME space and communities connected to it.
If you have a business idea that you feel has the potential to make a mark, we can provide you with ample financial support during various phases of building your company. As a tech-enabled organization, we have a completely digital loan application process to disburse business loans directly in your zero-balance current account.
All you have to do is visit our website or download the myKinara app on your smartphone and take our 1-minute eligibility test. If you receive a go-ahead, you can directly upload your documents and complete the secure KYC process. There is no waiting after that, as we make sure to credit the approved amount in your business account in just 24 hours. Our customers have reported a 20-25% growth in income by availing of our collateral-free business loans
So, open a zero-balance current account and ease your access to capital in your journey as an MSME entrepreneur!
- MSME Loan
- Business Financing
- Zero Balance Account
- Working Capital
- Fintech Loan