Small Business Loans are Helping Women Entrepreneurs in India

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Several Business Loan without collateral are being given out by various NBFCs with affordable interest rates and flexible repayment models, which are helping many small businesses and entrepreneurs get started.


A positive cultural shift has been seen in India over the past few years. According to statistics, a significant rise in women entrepreneurs in the country is taking place, with nearly 10 percent of all Indian start-up unicorns owned by women.

From Falguni Nayar to Namita Thapar, women entrepreneurs in India are on the rise and paving the way for future generations of aspiring women entrepreneurs. By providing many small Business Loans for women, financial institutions like Poonawalla Fincorp are helping them achieve their business goals.

Several Business Loan without collateral are being given out by various non-banking financial companies (NBFCs), with affordable interest rates and flexible repayment models.

The need for small business loans for women

Helping women entrepreneurs with curated loans will encourage more women to start their own businesses. It also helps diversify financial markets. Many women aspire to be entrepreneurs and business owners but are left wanting funds; this is not the case anymore.

Providing women with small Business Loans helps them achieve their dreams and inspires many like them to do the same. It also contributes to the economy by keeping financial institutions active and healthy.

In general, nobody should quit their dream of having their own business because of a lack of funds. And these small Business Loans for women ensure just that. Plenty of these schemes are provided by several NBFCs, which ensures that the entrepreneurs have a big pool to select from and get the best deal for themselves.

Features of small business loans for women

The primary feature of these loans is that they are exclusively for women looking to start their small business or wanting to expand an existing one. These loans are disbursed to them at competitive and attractive interest rates. The loans are hassle-free with a faster rate of approval. The average interest rates on such loans are 11-28 percent, and the repayment tenure is around three years.

The exclusivity of these small loans is advantageous to the target group as they don’t have to compete with other business owners looking for larger loans. They have a separate category for themselves and are more likely to be approved for the loan.

Eligibility criteria

Applicants must ensure they meet the eligibility criteria for these small Business Loans for women. It includes owning a small business with at least 51 percent ownership of the enterprise / company assets. Apart from this, the other eligibility criteria, like age and average income, vary based on the chosen NBFC or lending institution.

Application procedure

The application procedure for small Business Loans for women is similar to any other loan application. Applicants should ensure they meet the eligibility criteria and have the required documentation for the loan. It is advisable to look up various NBFCs and their loan schemes before picking the one that best suits the entrepreneur’s needs.

A quick practice is to check the EMI rates of these loans through a Business Loan EMI calculator offered by various lending institutions on their respective websites. This research will give the loan applicant more confidence about their decision and will help strengthen their finances sustainably.

After this, the loan applicant can contact the NBFC of their choice and submit their application along with the required documentation. After reviewing the application and checking everything out, the loan will be disbursed to the applicant.

Conclusion

Small Business Loans for women have only gotten better with time. While there have been many cases of small business owners not getting the required funds in the past, the scenario has changed for the better. Taking a small Business Loan has become a very easy process for women. This has helped increase the number of women entrepreneurs in the country.


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