How To Apply For A Business Loan For Women

Want to apply for business loan for women? Here is valuable information about the business loans for women & the steps to apply. Read to know more here!

20 Sep,2022 13:03 IST 13 views
How To Apply For A Business Loan For Women

Today, women entrepreneurs are conquering the business domain through numerous successful businesses in India and worldwide. However, like other businesses, women-run companies also require constant capital for the smooth running of business operations. Hence, they look towards applying for a loan for ladies for business.

Benefits Of Applying For A Loan For Ladies For Business

1. Easy Availability

Women entrepreneurs and businesses run by women are on the rise, which requires ideal capital for execution. To ensure such women entrepreneurs raise immediate funds for their businesses, lenders have created business loan products to cater to the capital needs of women-run businesses. Hence, women entrepreneurs can apply for business loans if they have a profitable running business.

2. Usage Flexibility

Businesses may have various needs that a business loan can fulflil. The same is the case with women-run businesses that require capital to invest in numerous business aspects. A business loan for women is a loan product that lenders such as banks and NBFCs have designed to offer utmost flexibility based on usage. A woman entrepreneur can take a working capital loan to cover immediate liabilities such as rent or paying employee salaries.

3. No Collateral

Typically, business loans do not require business owners to pledge an asset as collateral. The same is the case with women-run businesses. All women entrepreneurs have to do is fulfil the set eligibility criteria by the lenders for the business loans, and the lender will provide the loan amount to suit the business needs of the women entrepreneur. If you fall short of the eligibility criteria, you can always apply with a co-applicant.

4. Flexible Tenure

Loans for women to start business offer repayment flexibility. Women entrepreneurs can choose among numerous loan tenures for their business loans to select an EMI amount that is the most appropriate for their budget. The larger the loan tenure, the lower the EMIs to ensure the repayment does not create any financial burden.

5. Nominal Interest Rates

Business loans for women have affordable interest rates without unnecessary or hidden costs. The nominal interest rates on a business loan ensure that the women entrepreneur can pay the amount without creating a future financial burden because of the loan repayment liability. Since the business loan offers numerous negotiable factors, such as the loan amount and tenure, the business loan interest rates are affordable and attractive.

How To Apply For A Business Loan As a Women Entrepreneur

Here is the process to apply for a business loan as a women entrepreneur:

Step 1: Research and compare the loan products of various lenders, such as banks and NBFCs, to find the most suitable product.
Step 2: Analyze the eligibility criteria of the chosen lender to ensure that you fulfill the eligibility requirements.
Step 3: Visit the lender’s website, fill out the loan application form, and complete KYC verification by submitting the relevant documents.
Step 4: Choose a loan tenure and the EMI options available to complete the loan repayment.
Step 5: Once submitted, the loan amount will be disbursed within 48 hours if the lender approves the loan.

Business Loans for Women Entrepreneurs: Eligibility

Among 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 companies 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 organizations, NGOs, and trusts are not eligible for a business loan.

Documents Required By Women Entrepreneurs For A Business Loan

Here 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)

Apply For A Business Loan With IIFL Finance

IIFL Finance is India’s leading company that offers financial services with a particular focus on customised and comprehensive business loans targeted toward women entrepreneurs. IIFL Finance business loan offers instant funds up to Rs 30 lakh with a quick disbursal process. The business loan application process is entirely online with minimal paperwork. Visit IIFL website, fill out an application form, and complete KYC to get your loan approved now!

FAQs:

Q.1: How much time does it take to approve an 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 are the interest rates on IIFL Finance business loans for a woman entrepreneur?
Ans: Women entrepreneurs can take a business loan with an interest rate starting from 11.25%.

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