Easy Loan For Women Entrepreneurs – Check If You’re Eligible

In a developing country like ours, there are countless opportunities and growth potential. While start-ups and entrepreneurship are dominated mainly by men, a growing number of women entrepreneurs are now out there achieving their entrepreneurial dreams. Loan for women entrepreneurs is one step to facilitate women to achieve their dreams. According to Start-up India, merely 13.76% of the total entrepreneurs in India are women. Where the number of female entrepreneurs is just about 8 million, the number of male entrepreneurs has reached 50 million. And what better time than now to change these statistics and empower women?

For a long time, the traditional stereotype has been that women are meant only for household work. Some consider that women are only good for the kitchen, while some think it is a bad omen for women to go beyond the four walls of the home. Fortunately, times are changing. 

All the banks and non-banking financial companies (NBFCs) offer various loans for women entrepreneurs. These loans are aimed at supporting women who are willing to break the chains of stereotypes. Following this route, many financial companies have launched different loan schemes that offer benefits such as low-interest rates, flexible repayment options, lower EMIs, etc., specifically for women.

Start with A Small Business Loan

A growing number of financial institutions provide many different forms of small business or MSME loans for women entrepreneurs. Although most of these loans are only available to existing firms, some lenders also provide start-ups with short-term business loans. For example, LOC or Line of Credit is a common choice for financing small to medium-scale firms.

With this option, the lender checks the applicant’s eligibility to decide their maximum LOC limit. You will only be expected to pay interest on the amount you used and not on the entire credit limit whilst repaying the loan. 

Characteristics of Small Business Loan for Women Entrepreneurs

• Several different types of choices for loans to choose from
• Accessible secured and unsecured financing
• Competitive Rate of Interest
• Ideal for women entrepreneurs’ short-term funding needs

Now, let us have a glimpse at certain options for the loan for women entrepreneurs:

Non-Banking Financial Companies – Modern Lenders

NBFCs are an excellent choice if you are looking to finance your start-up or an existing company. Their loan eligibility is not as strict as those of conventional banks. It is even possible that if banks reject your loan application, your proposal can be assessed and supported by the NBFCs. 

With NBFCs, the collateral requirement is also fairly nominal, and in some cases, there is no need for property collateral, and they provide special discounts on loans for women entrepreneurs.

Making use of Government Schemes and Policies

The Government of India has given great prominence to women’s empowerment. Over the years, the central and various state governments have initiated various schemes to provide loans for women entrepreneurs. For example, women entrepreneurs can get a loan up to Rs 50,000, with the Shishu loan option, to start a small-scale company. The interest rates are one of the lowest in the market, and there is a limited eligibility criterion.

Characteristics of Government Finance Options

• Low-interest rate and limited conditions for eligibility
• Several distinct forms of structures to choose from
• The schemes include many banks and financial institutions.
• Flexible tenure for a limit of 5 years
• Taking Loan Against Security

One of India’s most familiar type of business loan, if you are planning to start a small business or a home-based company is a loan against security. You can vow your investments in the stock market, mutual fund, or life insurance policy with this option and borrow a loan against it. In most cases, you are free to use the amount of the loan as per your will.

Characteristics of Loans Against Security

• Secured form of credit.
• Competitive rate of interest.
• Avail loan up to 75 per cent of the securities pledged.

Even the most successful companies find themselves in need of additional funds from time to time, so upcoming businesswomen must consider how different loans for women entrepreneurs will meet their different financial needs. Choosing the right loan can be as critical as having cash in the first place, as variables such as repayment options and loan costs can directly affect the company. 

Working with a financial company that understands their needs is important for women entrepreneurs wanting to turn their vision of business into a reality. Reputed finance lending institutions like Kinara Capital have products like HerVikas, enabling women to seek collateral-free loans at special discounts. The process is hassle-free, and you can get a loan within a short time.