If a business is built with the help of loans from any source, then that enterprise is termed kátiká in Sanskrit. Suppose someone has no capital but wants to start a business by taking a loan, then that business is called kátiká vyavasá. You might have noticed that there are many countries which suffer from financial stringency, so they take loans from other countries. These loans are then used for ventures like constructing large dams on their rivers.

The science of economics teaches that the rolling of money should never be blocked by any sort of non-productive investment. Sometimes people misuse loans to construct an unnecessary building or a new showroom for their business, and thus prevent the possibility of reinvesting the capital and increasing their wealth. Economics teaches that loans taken for business investment should always be utilized for productive purposes, and should never be utilized in any unproductive venture. Foreign loans, for example, should never be invested in constructing large railway stations instead of railway lines.