India is home to a diverse business ecosystem. The nation offers innumerable opportunities to potential business enthusiasts, especially women. A significant contributor to this increase in female entrepreneurs is the easy access to Business Loans for Women.
Lenders offer instant business loans to women entrepreneurs to help them attain greater success in their endeavours. The high capital value helps business women work more efficiently towards entrepreneurial success. Read on to know more about business loans for women.
Features of Small Business Loans for Women
Business loans for women are designed to help the latter accomplish their entrepreneurial objectives. Notable benefits of small business loans for women include:
Quick Processing: The business loan disbursal process is expedited and you can expect the loan within a few days of approval. Lenders minimise the effort and time to ensure that the loan is disbursed at the earliest. Depending upon your profile, the business loan is made accessible within a short, specified period.
Credit Score Booster: A business loan plays a crucial role in boosting your credit score. This is because credit products have a significant impact on credit status. Repaying the loan effectively is beneficial in building a strong credit status.
Minimal Document Requirement: To make things even seamless, a business loan for women requires minimal documentation. This lets you avoid extensive paperwork to secure the loan.
Flexible Repayment Options: Business loans for women are offered with flexible repayment options. Lenders do consider the challenges faced when setting up the operations of a business. This ensures flexible repayment terms and conditions on the loan.
Non-Collateral Requirement: Depending upon the loan profile and other associated factors, the business loan is typically offered collateral-free. Essentially, this means that you do not have to procure and pledge valuable assets to secure the loan.
Also, check government schemes for women entrepreneurs.
Eligibility for Business Loans for Women
A business loan for women is easily approved as long as your meet the simple eligibility criteria:
Be at least 21 years of age when applying for the loan and not more than 65 years
Be an individual corporation, sole proprietor, or private company involved in trading, production, or services
Business vintage of a minimum of three years and as a professional, have at least five years of work experience
Possess clear business account records
The company must be tax-compliant
Borrowers are advised to check their eligibility with an online business loan eligibility calculator.
Fees and Interest Rates
Women entrepreneurs can avail of a business loan at Finserv MARKETS at a very competitive interest rate and other charges. The interest rate usually starts at 15% p.a. The processing fee is usually up to 3.99% of the loan amount, whereas the foreclosure charge is generally up to 4% of the outstanding loan amount.
Documents Required for Business Loans for Women
The following documents must be presented when applying for a business loan for women:
Personal KYC: PAN card
Residential Address Proof: Rent agreement, driving license, voter's ID, ration card, passport, aadhaar card
Banking Proof: Bank account statements for last 6 months
- Business Proof: GST registration certificate, shops and establishment certificate, Business PAN card
FAQs
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✔️How can a woman get a business loan?
If you run a women-owned business, you'll likely be in need of a business loan at some point. Online platforms like Finserv MARKETS have made it easier for female business owners to obtain financing.
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✔️How can I get a Mahila loan?
Launched in 2015 by the Government of India, the Pradhan Mantri Mudra Yojana (PMMY) provides financial support to aspiring female entrepreneurs in starting their own business. To promote women entrepreneurship in the country, financial institutions thus extend Mahila loans for women under this scheme.
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✔️Is it easier for a woman to get a business loan?
Traditionally, women entrepreneurs have found it hard to secure business finance due to a number of social stigmas. However, the recent evolution in business finance and the emergence of FinTech platforms such as Finserv MARKETS have made it easier for women entrepreneurs to get business loans. Today, business loans for women are also enabling self-employment in rural and urban India.
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✔️How do I know if I qualify for a business loan?
Following are the factors deciding business loan eligibility:
● Age Limit: The applicant should be minimum 21 years old.
● Income: Business should be profit making at least for the past 2 year.
● Turnover: The business should have a minimal turnover of Rs. 1.5 Lakhs per annum.
