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

Calculate your EMI and choose the most suitable product for you

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:

No Collateral

Availing a loan for women does not require pledging any asset as collateral.

Quick Disbursal

Small business loans for women are disbursed within 48 hours.

Repayment

Women entrepreneurs can repay their business loans through affordable EMI repayment options.

Loan Process

The business loan application process is easy and entirely online.

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:

  1. The business has been operating for more than six months at the time of application.

  2. The minimum turnover is 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 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:

KYC documents – Identity proof and address proof of the borrower and all co-borrowers

PAN Card of the borrower and all co-borrowers

Last (6-12 Months) months bank statement of main operative business account

Additional document(s) for credit assessment and processing the loan request

GST Registration

Previous 12 months’ bank statements

Proof of business registration

PAN Card and Aadhar Card copy of the Proprietor(s)

Deed copy and company PAN Card copy in the case of partnerships

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

How To Apply For Business Loan For Women?

Here is how you can apply for a business loan for women to with IIFL Finance.

  • Visit IIFL Finance’s website and navigate to the business loan section.

  • Click on “Apply Now” and fill in the application form.

  • Submit all the relevant documents needed for completing KYC.

  • Click on the “Submit” button to complete the loan application process.

  • After review, IIFL Finance will approve the loan in under 30 minutes and disburse the amount within 48 hours into the borrower’s bank account.

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:

Social Stigma

The patriarchal setup and ideology of the Indian society raise questions about women entrepreneurs' ability to run businesses.

Networking

Women entrepreneurs may face problems while networking as they may realise they have to network in a male-dominated business ecosystem.

Work-Life Balance

Owing to household responsibilities, women entrepreneurs may find it difficult to give adequate time to the business.

Safety

A major concern for women entrepreneurs in India is personal safety relating to odd working hours and late-night travelling.

Business Loans For Women FAQs

Yes, if you are a woman and have a business, you can apply for a business loan for women in India with IIFL Finance.

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Women can take a business loan if they have a running business by applying online to IIFL Finance’s women entrepreneurs’ loans.

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Although it may be difficult for a woman to take a traditional business loan, loans for women to start a business in India can help raise immediate capital.

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Yes, a credit score of 750+ is needed to get a small business loan for women.

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With IIFL Finance’s business loans for women, you can avail of a minimum business loan amount of Rs 50,000.

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The average duration of IIFL Finance’s business loans for women is 2-3 years.

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Yes, IIFL Finance allows the borrower to renew the business loan after successful repayment within the loan tenure.
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