Small business loans are assisting Indian women entrepreneurs
Over the last few years, India has experienced a positive cultural shift. There is a significant increase in female entrepreneurs in the country, with women owning nearly 10% of all Indian start-ups. Women entrepreneurs in India, from Falguni Nayar to Namita Thapar, are on the rise and paving the way for future generations of aspiring female entrepreneurs.
Financial institutions such as Poonawalla Fincorp help women achieve their business goals by offering numerous small Business Loans. Several non-banking financial companies (NBFCs) offer business loans without collateral, with low-interest rates and flexible repayment terms.
The need for small business loans for women
Providing curated loans to female entrepreneurs will encourage more women to start their own businesses. It also aids in the diversification of financial markets. Many women aspire to be entrepreneurs and business owners but lack the necessary funds; this is no longer the case. Providing small business loans to women helps them achieve their goals and inspires others to do the same. It also helps the economy by keeping financial institutions alive and well. In general, no one should abandon their dream of starting their own business due to lack of funds. And these small Business Loans for Women make certain of it. Several NBFCs offer a variety of these schemes, ensuring that entrepreneurs have a large pool from which to choose and get the best deal for themselves.
Features of small business loans for women
The main feature of these loans is that they are only available to women who want to start a small business or expand an existing one. These loans are made available to them at competitive and appealing interest rates. The loans are simple to obtain and are approved quickly. The average interest rate on such loans is 11-28 percent, with a three-year repayment period. The target group benefits from the exclusivity of these small loans because they do not have to compete with other business owners looking for larger loans. They have their own category and are more likely to be approved for the loan.
Criteria for Eligibility
Applicants must ensure that they meet the eligibility requirements for these Women’s Small Business Loans. It entails owning a small business in which you own at least 51 percent of the enterprise/company assets. Other eligibility criteria, such as age and average income, vary depending on the NBFC or lending institution chosen.
Procedure for Application
The application process for small Business Loans for Women is similar to that of any other loan. Applicants should ensure that they meet the eligibility requirements and have all of the necessary documentation for the loan. It is advisable to research various NBFCs and their loan programs before deciding on the one that best meets the needs of the entrepreneur. A quick practice is to check the EMI rates of these loans using a Business Loan EMI calculator available on the websites of various lending institutions. This research will give the loan applicant more confidence in their decision and will aid in the long-term strengthening of their finances.
Women’s Small Business Loans have only gotten better over time. While there have been many cases of small business owners not receiving the necessary funds in the past, the situation has improved. Obtaining a small business loan has become a relatively simple process for women. This has contributed to an increase in the number of female entrepreneurs in the country.