About Business Loan for Women
Women are increasingly becoming entrepreneurs and adding to the growth of small and medium enterprises (SMEs). Often these types of business ventures have unique fund requirements.
Financial institutions offer special small business loans that cater to women entrepreneurs. These types of loans have simple eligibility criteria, minimal documentation, and fast approvals.
Features of business loans for women
A business loan for women has beneficial features as listed below:
Higher amount
Lenders offer loans of up to INR 30 lakh to enable women to meet the financial needs of their businesses. The money may be used to buy equipment, expand the business to newer markets, or meet regular operational expenses.
Flexibility
Borrowers may withdraw only the amount they need from the total sanctioned loan. Interest is levied only on the withdrawn amount and the repayment is customized to suit the cash flows of the business. The business loan interest rate is applied only on the withdrawn amount, which may help reduce the Equated Monthly Installments (EMIs) by as much as 45%.
Quick disbursal
These types of loans require minimal documents ensuring the entire procedure is quick and completed in a short period. The process may be completed online and approval may be received within 24 hours.
No security requirement
Facilities such as home loans, loan against property, and car loans require collateral. Therefore, personal assets are at a risk in case borrowers fail to make timely repayment. Loans for women may be availed without any security; ensuring personal assets are not at any risk. Additionally, no guarantors are needed to avail these loans, making the application procedure simple and quick.
Affordable
In addition to an affordable rate of interest, loans for women entrepreneurs may be repaid over a longer period. The loan tenure ranges between one year and eight years ensuring borrowers have no difficulty in making timely payments on the borrowed amount.
Most financial institutions provide special pre-approved loans that allow women entrepreneurs to have access to funds when needed without any delays. Borrowers are advised to check their eligibility with an online business loan eligibility calculator.
A few details like the loan amount, rate of interest, and tenure input in the calculator give borrowers an idea on the approximate EMI they will have to pay for the facility. Knowing the estimated EMI helps plan finances in a better way and is beneficial in managing the cash flows more efficiently.
You can also avail a mudra loan for women and enjoy lower interest rates.
Business Loans for Women: Fees & Interest Rates
Women entrepreneurs can avail a business loan at Finserv MARKETS at a very competitive interest rate and other charges. The interest rate usually starts with at 12.99% p.a. The processing fee is up to 3.99% of the loan amount, whereas the foreclosure charge is up to 4% of the outstanding loan amount.
Eligibility Criteria for Business Loans for Women
Before availing a business loan, women entrepreneurs must check their loan eligibility. This will reduce the chances of rejection of business loan applications. If you are a women entrepreneur, looking to avail a business loan for your small business, you can consider availing a business loan for women at Finserv MARKETS. The eligibility criteria is mentioned below:
You must be an Indian citizen
You must be self-employed
You must be between 26-66 years of age
You must have 3 years old business
Problems Faced by Women Entrepreneurs in India
Some of the most common problems faced by women entrepreneurs in India are mentioned below:
Lack of funds for growth and expansion of business
Stiff competition with organized sector and male counterparts
Scarcity of raw material
Male dominant society and family ties
Low risk-taking capacity
