Women entrepreneurs are leading the charge to produce innovative solutions for bringing a positive change in society. In doing so, they are showcasing their unique approach to management, organisation and solving business problems. With customised business loans for women, loaded with a host of benefits and privileges, we are here to partner your financial needs. We hope to be with you along the way of your success in finding your financial independence, making your own decisions and leading the way for people around the country.
Features of Business Loans for Women
- Avail loans up to ₹ 2 Crore
- An online business loan for women
- Business loans for women in 3 days
- Collateral-free business loans for women
- Competitive interest rates
- Ample time to repay
- No Hidden Costs
- No penalties on early repayment
Benefits of Small Business Loans for Women
- Easily accessible – These days, small business loans for women are offered by many leading banks and financial institutions to encourage women entrepreneurs. Also, these loans do not require women to provide collateral, making it easy to avail.
- Concession on interest rates – Women who wish to avail small business loans can enjoy a concession on the interest rates. For instance, SBI offers a concession of 0.5% on business loans for loans over Rs.2 lakh. Low interest rates can help women entrepreneurs to use the money saved to scale their business.
- Easy repayments – Women entrepreneurs availing small business loans can repay the loan amount in easy equated monthly instalments (EMIs). Lenders understand that a business can go through many ups and downs which is why they offer easy and flexible repayment options.
- Business growth – Small business loans can encourage women entrepreneurs to start their own business or scale up their existing business. For any business to grow, it is imperative to have adequate funds and that’s when small business loans can help.
What is the Eligibility for Business Loan for Women?
- Age – Must be between 25 to 65 years
- Business Profitability – Must be consistent for the last three consecutive years
- Business Turnover – must show an upward trend
- Balance Sheet – must be audited by a registered Chartered Accountant
Business Loans for Women: Fees & Interest Rates
|Customized Interest Rates||15 to 27% *|
|Loan Tenure||up to 3 years|
|Eligibility Criteria||> ₹ 90,000 turn over for 3 Months|
|Loan Amount||₹ 50,000 – ₹ 2 crore|
3 simple steps to your Business Loans for Women
1. Submit Application
Simply enter your personal, business and financial info to receive a Business Loans for Women offer.
2. Upload Documents
Upload digital copies of your documents in a single step process for verification.
3. Get Sanctioned
Receive your Business Loans for Women approval and disbursal within 3 working days.
6 Problems Faced by Women Entrepreneurs in India
Women entrepreneurs in India face challenges that are singular to the country, such as,
1. Social Stigma
The patriarchal setup of the Indian society puts enterprising women at a disadvantage by raising questions about their ability and competitiveness. While Indian women have broken these stigmas time and again, society is yet to witness a comprehensive transformation of mindset when it comes to promoting women equality in social, economic and political life.
2. Aggressive Behaviour of Peer
The theme of bias against women is not limited to society, but also extends into the financial sphere, where women entrepreneurs are often patronized by their peers. Often times such aggressive and assertive behaviour can be detrimental for a woman’s enterprising spirit and business vision.
Women entrepreneurs are such an isolated breed at the moment that it becomes difficult for them to join business networks, notwithstanding the aforementioned disadvantages of working in a male-dominated environment.
4. Personal Priorities
Quite often, an enterprising woman is also responsible for managing the household. This puts her at a disadvantage in comparison to male entrepreneurs when it comes to devoting time to business development.
5. Business Mindset
Given the sheltered way in which most Indian women are brought up, it takes time for them to become a shrewd business operator. Sometimes, a stakeholder or competitor may take undue advantage of a woman entrepreneur’s trusting nature.
6. Safety and Security
A major problem faced by most women entrepreneurs in India is that of personal safety and security. Their work may involve odd working hours and frequent travelling to new places, which always warrants caution.
|Application form||Filled and duly signed|
|KYC Documents||Business entity proof, partnership deed, incorporation certificate, shops and establishment certificate, Articles of Association (AOA)|
|Financials||Projected turnover and current year performance|
|Tax audit reports, balance sheet, profit and loss report, VAT returns, audited and provisional financials, etc.|
|Bank Statements||For the last 6 months|
|Photographs||Passport-size photograph of applicant/co-applicants|
|PAN Card||Of partners/directors/proprietors/promoters|
|Of the business entity|
|Address Proof||Of the business entity|
Business Loans for Women in 2021
1. Government Loans:
- Prime Minister Rozgar Yojana for women extends a loan of up to Rs 5 Lac to unemployed young women, uneducated homemakers, and students between the age of 18 to 45 to start a business. It is a great source of funding for women as they have longer repayments periods and lower rate of interest.
- Pradhan Mantri Mudra Yojana has three different loan options- Shishu, Kishor and Tarun for start-ups as well as existing business expansion one of the lowest interest rates in the country,. Women entrepreneurs can get a loan of up to Rs. 50,000 for starting a small-scale business under the Shishu loan option. For existing businesses Kishor and Tarun options allow a female entrepreneur to borrow up to Rs. 10 lakhs for tenure of up to 5 years.
- Women Enterprise Program or Mahila Udhyami Yojana offers women entrepreneurs an interest discount of up to 0.25% on their business loans. It also has low-interest rate and eligibility requirements and flexible tenure of up to 5 years.
2. Government Sector Bank Loans:
- Stree Shakti Package from SBI: State Bank of India offers this Mortgage Free loan with interest rate of 11.20% onwards (p.a.) and repayment tenure up to 36 months, including 1 month moratorium period for women who own 51% or more in the enterprise.
- Cent Kalyani from CBI: Central Bank of India offers this scheme for women entrepreneurs who are into rural and cottage industries, MSMEs, entrepreneurs, and women working in farming, retailing and government-backed firms. you can avail under this scheme is up to Rs. 100 Lakh. to meet day-to-day requirements, such as purchase of plant & machinery/equipment, etc. and working capital expenditure.
- Shringaar and Annapurna from Bhartiya Mahila Bank: BMB Shringaar (Loan for Beauty Parlour, Saloon or Spa) and BMB Annapurna (Loan for Food Catering) are both Collateral Free loans to be covered under CGTMSE. The eligibility age is 20-60 years with repayment tenure of 7 years and 18-60 years with repayment tenure of 3 years respectively.
- Shakti Scheme from BoB: The Shakti Scheme from Dena Bank supports women entrepreneurs who are into agriculture & allied activities, retail trade, micro credit, education, housing as well as enterprises in the direct/indirect finance, manufacturing and services sectors. It offers up to Rs. 20 Lakhs for retail trade, education and housing and Rs. 50,000 under micro credit schemes with 0.25% below base rates for women applicants who are majority stake holders in the company.
- Mahila Udyam Nidhi Scheme from PNB: Punjab National Bank offers this scheme for women and has different plans for day-care centres, beauty parlours, purchase of two-wheelers, cars, auto-rickshaws, etc. You can avail up to 10L with repayment tenure of 3-5 years under this scheme. ROI varies based on the market rate.
- KBL Mahila Udyog Loan from Karnataka Bank: Karnataka bank offers this scheme exclusively to women holding minimum 51% of shareholding and controlling stake in the firm or company. The maximum loan amount offered is Rs. 10 Lakhs and the maximum repayment tenure is up to 10 years.
- Orient Mahila Vikas Yojana Scheme: Oriental Bank of Commerce provides it to women holding at least 51% share in the organisation. No collateral required up to Rs. 25 lakhs and maximum tenure is 7 years. The concession on the rate of interest is 2%.
3. Commercial Business Loan:
With a commercial business loan, you can borrow as much as Rs. 50 lakhs for tenure of up to 3-5 years. These loans are generally ideal for medium-scale businesses wanting to expand their operations. You will also be required to submit your current account statement of at least one year to the lender to ascertain that you are running a profit-making business. if you do have assets like commercial property which you can pledge, the loan amount can be increased further.
4. Small Business Finance:
Some financial institutions now offer many different types of small business or SME loans. Small to medium-scale female entrepreneurs funding can opt for LOC or Line of Credit where the eligibility of the applicant is used by the lender for determining their maximum LOC amount. You can borrow loans of up to 50 Lakhs or more. While repaying the loan, you will only be required to pay interest on the amount you actually used and not on the entire credit limit. Secured and unsecured loans are available.