To keep India’s economy growing steadily, we need to create ecosystems that support all types of female entrepreneurs. A new generation of female entrepreneurs has entered the less explored sectors, bringing about a revolution in the Indian economy.
Women-led start-ups have grown in popularity in the country over the past few decades, creating employment opportunities for many. However, women entrepreneurs have to struggle a lot to obtain business financing.
Women naturally excel in some areas and are venturing into potential businesses related to educational services, design, home, life and financial organization, event planning, application development, food and catering, e-commerce, and digital marketing.
To begin, they would need to apply for an online business loan. Let us look at the various loan options available for women.
MSME and Business Loans for Women- Top 5 Business Loan Options
These are excellent ways of financing women. Personal Loans vary from lender to lender and offer different terms of repayment, loan amounts, and interest rates. The eligibility criteria can vary too.
A personal business loan for women is a good option if you have a stable income or a decent credit rating.
Business Financing for Women Through Poonawalla Fincorp
Poonawalla Fincorp is a personal line of credit with a simple application process, minimal documentation, and fast approval. Poonawalla Group’s focus and commitment to providing the right financial support to women is commendable. It offers the lowest interest rates in the industry, using a highly effective digital process.
You can get a loan up to ₹30 Lakhs with zero foreclosure charges, flexible repayment tenure of up to 36 months, and an attractive interest rate.
Government Loan Programs for Women Entrepreneurs
Public financing for women is possible because they tend to be collateral-free, have flexible repayment terms, and lower interest rates. But due to multiple documents and more paperwork, women tend to depend on private loan opportunities to start their businesses.
Some of the best public sector bank Business Loans for women are:
Stree Shakti Package for Women Entrepreneurs
Most SBI Affiliates offer this program to women with a 50% equity stake in a business or Entrepreneurship Development Programs (EDPs) conducted by government agencies.
This financial loan for women also reduces the interest rate by 0.05% on female business loans if the loan amount exceeds ₹2 Lakh.
Mudra Business Loans for Women
These loans are for women looking for a business plan such as starting a beauty salon, study centre, sewing shop, etc. This program does not require collateral to qualify for the loan.
However, there are categories for which a mudra loan can be applied – Shishu Loan, Kishor Loan, and Tarun Loan.
Cent Kalyani Program
The Cent Kalyani Program offers small business loans to self-employed women and women working in small and medium enterprises, retail, cottage departments, agriculture, or for programs the government sponsors.
Stand-Up India
This loan scheme initiated by the government offers credit facilities for a credit amount of ₹10 Lakh to ₹1 Crore. The maximum repayment period is seven years with a moratorium of 18 months.
Conclusion
Applying for a women’s business loan is easy. Besides applying for government-initiated loan options, you can download the required app, enter your KYC details, and submit a request to realize your entrepreneurial dream.
Finding funding for women-owned businesses can be difficult, but it’s not impossible. Some lenders like Poonawalla Fincorp offer many lucrative alternatives that cater to women-owned businesses. Now is the time to apply for online business loans to get the money if you have a good business idea in mind.
