Key Features of Business Loans for Women
1. Easy availability:
The demand for business loans from the female side of society has steadily increased in recent years. More and more women are coming up with innovative startup concepts, which will require appropriate funding to grow. In light of this, many financial institutions have decided to offer business loans to women.
The lender will easily approve you for a low interest rate if you have a solid business plan, appropriate sales projections, and a solid credit profile.
Your road as a business owner is strewn with pitfalls. You will need money to solve several problems at once. Sometimes you need funds to replenish stocks and inventories. While other times you will need funds to buy new machines. If you are an established business, you might be interested in acquiring a small start-up.
A business loan for women is designed in such a way that it can easily meet a variety of business requirements. Plus, these loans can be tailored to meet your specific needs. This means that you can apply for a working capital loan depending on your working capital needs. Similarly, a medical professional can also take out a medical equipment loan to purchase advanced medical equipment.
3. Unsecured Loans
The most common challenge women entrepreneurs face is the availability of funds in exchange for collateral. However, this is not the case with a business loan for women.
Funds are readily available until you meet the lender’s minimum qualifying criteria. If you don’t meet the minimum eligibility, consider adding a co-applicant.
A co-applicant can be either your spouse or your business partner.
4. Flexible plan
Business loans for women are available for a flexible tenure. Repayment flexibility allows you to select a term with an EMI amount that best suits your budget.
Your mandate has a direct impact on your budget, so make the best decision possible. Let’s take a look at the table below to help us understand this better.
5. No Profit Sharing:
There are certain scenarios in which women entrepreneurs raise funds through private equity. However, there are a number of downsides to doing so. For example, you will have to share the profits with investors, and the investors will be involved in all aspects of the business. Moreover, whatever decision you make in your business will require the participation of investors. And if your investor isn’t impressed with your concept, you may soon have to reconsider.
So, if you don’t want to be part of the previous situation, a business loan for women is the ideal option. Interest is not requested by the lender. You will only be responsible for repaying the amount borrowed plus interest.
6. Competitive interest rate
Business loan interest rates are determined by your credit profile.
The lender assesses your business finances and liabilities before deciding on your interest rate. In this case, if your business is doing well and has no defaults to its name, it is much easier to obtain financing at low interest rates.
How to apply for business loan for women??
If you think this loan can help you reach new heights, look no further and learn how to get an affordable business loan interest rate.
– Do extensive research to find the ideal lending institution.
– Visit their website and go to the business loans section.
– Check the list of required documents on the business loan page and read the minimum eligibility requirements.
– Complete the online application form and upload all required documents.
– The lender will verify your details.
– If the details are satisfactory, one of their representatives will contact you to obtain the additional information necessary to process the loan.
– Once you have provided the additional details, the lender will initiate a credit assessment. They will send you a proposal letter based on this. The letter will contain information such as the loan amount, interest rate, and any loan-related fees that may apply.
– You must give your written acceptance through the appropriate communication channel.
– After acceptance, the lender will pay the amount to your account shortly.
Here are 5 business loan programs by banks for businesswomen
1. Central Hundred Kalyani
The Central Bank of India offers business and start-up loans to businesswomen to open a new business or expand the current one.
2. MUDRA loan
MUDRA Yojana under the Pradhan Mantri Mudra Yojana (PMMY) program is a government program through which individuals, startups, business owners, as well as female entrepreneurs can take out loans from banks. Under the Mudra Yojana scheme, loans of up to Rs 10 lakh are offered to women for starting a new business or expanding the current one. The loans are offered in three categories – Shishu (up to Rs 50,000), Kishor (Rs 5 Lakh) and Tarun (Rs 5 lak to Rs 10 lakh).
3. Bhartiya Mahila Bank Shringaar and Annapurna Loan Schemes ()
SBI offers women entrepreneurs a wide range of loans for the creation of a new business or for expansion. The two most popular options of this program are Shringaar and Annapurna. The Shringaar loan is given to women entrepreneurs who want to set up beauty salons and the Annapurna loan scheme is intended to set up a catering business or sell packed lunches.
4. Synd Mahila Shakti of
Canara Bank lends to new and current female entrepreneurs. The program is available as a cash credit to meet the working capital needs of new and existing business units or as a term loan program for up to 10 years. A company requesting such a loan must have one or more women holding at least 50% of the financial participation.
5. Shakti Schema of (BOB)
The Shakti program provides loans for a wide range of sectors, including agriculture and related businesses, retail, microcredit, education, housing, as well as businesses in direct/indirect finance, manufacturing and services. The maximum loan amount differs by sector. The loans are offered with no processing fees and with a 0.5% discount on loans up to Rs 5 lakh.
(Entry of the ANI)