Business Loan For Women
Women Entrepreneurs are revolutionising the business world through their success. They have constantly proved that they can execute an idea into a successful business by managing operations effectively. However, like other businesses, a women-owned business also requires constant capital to ensure the smooth running of business operations. One of the best ways to fulfil the capital requirements of the business is through business loans for women.
IIFL Finance has designed business loans for women entrepreneurs to raise immediate capital for their businesses and fulfil their entrepreneurial dreams. IIFL Finance’s business loans for women come with affordable interest rates where women entrepreneurs can raise Rs 30 lakh within 48 hours.
Women Loan EMI Calculator
Business Loan For Women Features and Benefits
A loan for women is an ideal loan product to raise immediate and adequate capital to invest in various aspects of their business. Women entrepreneurs widely utilise small business loans for women owing to the features and benefits:
Eligibility Criteria for Business Loans for Women Entrepreneurs
Lenders such as NBFCs or banks offer small business loans for women based on some set rules for utmost transparency in the loan offering process. The loan for women eligibility criteria must be fulfilled by women entrepreneurs before applying for a loan for women entrepreneurs in India. Here are the eligibility criteria for ladies’ business loans:
The business has been operating for more than six months at the time of application.
The minimum turnover is Rs 90,000 in the last three months from the time of application.
The business does not fall under any category or list of blacklisted/excluded businesses.
The office/business location is not on the negative location list.
Charitable organisations, NGOs, and trusts are not eligible for a business loan.
Documents Required For Business Loans For Women Entrepreneurs
Lenders require certain documents related to the woman entrepreneur and the business to approve the loan for women. Here are the documents required for women entrepreneurs loans:
Business Loans For Women: Fee and Interest Rates
Lenders offer loans for women entrepreneurs after they ensure timely repayment of the principal amount and interest within the loan tenure. Apart from the interest, lenders charge specific other fees for providing the loan amount. Since these charges can increase the final repayment amount, it is important to know all the charges along with the levied interest rates on various types of loans for women. Here is a detailed table:
|Rate of Interest||11.25% - 33.75% p.a.|
|Loan processing charges:||2% - 4% + GST*( Additional Upto ₹500 will be charged as Convenience Fees )|
|Cheque/ ACH Return charges:||₹500/ + GST* per instance|
|Cheque/ ACH swapping charges duplicate no- dues certificate:||₹500/ + GST* per instance|
|Penal Interest||24% per annum|
Calculation of Business Loan Interest Rate
In a women entrepreneurs loan, lenders offer the option to women to repay the business loan through multiple flexible EMIs stretched over the loan tenure. Women entrepreneurs can calculate the EMI and interest on their women entrepreneurs’ loans by using the basic formula below.
The basic formula to calculate EMI and interest rates on business loans is:
P * r * (1+r) ^n / ((1+r) ^n-1). P is the principal amount, R is the rate of interest per month, N is the loan tenure.
However, if you are looking to calculate EMI precisely without having to use the above complex method, IIFL Finance has designed an online EMI calculator for business loans for women to determine the monthly instalments on your business loan, along with the overall due interest on the loan.
Problems Faced By Women Entrepreneurs in India
Women entrepreneurs may face certain problems in running business operations or raising capital. Some of the most common problems are: