Business Loans For Women Entrepreneurs
Business Loan for Women: Know the 6 best business loan options, benefits, eligibility, documents required, etc for women entrepreneurs only at IIFL Finance!
Recently, the volume of women entrepreneurs creating successful businesses in India has skyrocketed. However, like any other business, women-run businesses also need uninterrupted capital to run or expand operations profitably. Taking a business loan for women is an ideal option to fulfill the capital requirement of their business.Here are the various options for business loans for women:
1. Small Business LoansAlso known as SME loans, this funding option is available for women to invest in their existing businesses or a startup. Such loans include a Line of Credit (LOC) to cater to all the credit needs of small and medium enterprises that do not have a high capital investment or monthly turnover. These small loans are ideal for women entrepreneurs and come with nominal interest rates to fulfill short-term capital requirements.
2. Commercial Business LoansThese loan products offer women entrepreneurs immediate capital up to Rs 50 lakh with a 3-5 years repayment period. The loan is for businesses that are at least running for a year and are profit-making. It offers flexibility with multiple repayment options and quick disbursal into the bank account.
3. Loan Against SecuritiesThis loan type is where you can borrow an amount against the value of investments in the stock market, insurance policies, fixed deposits, gold, mutual funds etc. Such loans can offer up to 75% of the total investment value to the women entrepreneur and do not require pegging any other asset as collateral. It also has a nominal interest rate and minimum eligibility.
4. Personal LoansThey are one of the most flexible products available as a loan for women entrepreneurs, which they can use for starting a small business, even at home. One of the best features of a personal loan is the flexible and unrestricted usage of the loan amount. It means that a budding woman entrepreneur can use the personal loan amount to start or run any type of business.
5. Gold LoansMany women may store gold articles in a locker, such as gold jewellery, gold coins, etc. A budding women entrepreneur can take a gold loan from a quality lender by pledging their gold articles to the lender in return for immediate capital. The loan amount is offered based on a percentage of the total current value of the gold articles as per the current domestic gold price.
6. Government Loan SchemesThe Indian government has launched numerous loan schemes to encourage women entrepreneurs in the country. A women entrepreneur looking to create a business can register with numerous government programmes to raise capital, such as Mahila Udhyami Yojana, to ensure they fulfill their capital requirements. Government scheme loans do not offer a high loan amount but an affordable interest rate.
Benefits Of A Business Loan For Women EntrepreneursBusiness loans for women entrepreneurs can prove to be highly beneficial to ensure they have enough to invest in the business to see it succeed. Here are some benefits of business loans for women entrepreneurs:
1. Minimal Paperwork:When compared to banks, NBFC business loans require minimal paperwork.
2. Quick Disbursal:Quality lenders approve the business loan application within 30 minutes and credit the loan amount within 48 hours.
3. No Collateral:Most NBFCs do not require any collateral and provide the loan amount without pledging an asset as collateral.
Business Loans For Women Entrepreneurs: EligibilityAmong all women’s loans for small businesses, a business loan stands out as it offers the best benefits with a nominal interest rate. The eligibility for a business loan includes:
1. Established businesses operating for more than six months at the time of application.
2. Minimum turnover of Rs 90,000 in the last three months from the time of application.
3. The business does not fall under any category or list of blacklisted/excluded businesses.
4. The office/business location is not on the negative location list.
5. Charitable organisations, NGOs, and trusts are not eligible for a business loan.
Documents Required By Women Entrepreneurs For A Business LoanHere are the documents Proprietorship, Partnership and Pvt. Ltd/ LLP /One Person Company will need to submit to complete the application for a women’s loan for a small business:
1. KYC documents – Identity proof and address proof of the borrower and all co-borrowers
2. PAN Card of the borrower and all co-borrowers
3. Last (6-12 Months) months bank statement of main operative business account
4. Signed copy of standard terms (term loan facility)
5. Additional document(s) for credit assessment and processing the loan request
6. GST Registration
7. Previous 12 months’ bank statements
8. Proof of business registration
9. PAN Card and Aadhar Card copy of the Proprietor(s)
10. Deed copy and company PAN Card copy in the case of partnerships
Avail Of An Ideal Business Loan For IIFL FinanceIIFL Finance is India’s leading NBFC that offers varying financial services with a particular focus on customised and comprehensive business loans. IIFL Finance business loan offers instant funds up to Rs 30 lakh with a quick disbursal process online and minimal paperwork. The loan’s interest rate is attractive and affordable to ensure the repayment doesn’t create a financial burden.
Q.1: How much time does it take to approve the IIFL Finance business loan?
Ans: IIFL Finance business loan is approved within 30 minutes of application.
Q.2: Do women entrepreneurs need collateral to acquire a business loan from IIFL Finance?
Ans: No, IIFL Finance business loan does not require pledging any asset as collateral to take the business loan.
Q.3: What is the loan tenure for IIFL Finance business loan?
Ans: The loan tenure for a business loan up to Rs 30 lakh is five years.