Several unsecured business loans are provided 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 observed in India over the past few years. According to statistics, a significant increase in the number of female entrepreneurs in the country is on the way, with nearly 10% of all Indian start-up unicorns owned by women.
From Falguni Nayar to Namita Thapar, female entrepreneurs in India are on the rise and are paving the way for future generations of budding female entrepreneurs. By offering numerous small business loans for women, financial institutions like Poonawalla Fincorp help them achieve their business goals.
Several Unsecured business loan are distributed by various non-bank financial companies (NBFCs), with affordable interest rates and flexible repayment models.
The need for small business loans for women
Helping women entrepreneurs with organized loans will encourage more women to start their own businesses. It also helps to diversify financial markets. Many women aspire to become entrepreneurs and business owners, but lack funds; this is no longer the case.
Providing women with small business loans helps them achieve their dreams and inspires many of them to do the same. It also contributes to the economy by keeping financial institutions active and healthy.
In general, no one should give up on their dream of having their own business due to a lack of funds. And these small business loans for women guarantee exactly that. Many of these programs are provided by multiple NBFCs, ensuring entrepreneurs have a wide range of choices and get the best deal for themselves.
Features of Small Business Loans for Women
The main feature of these loans is that they are exclusively for women who want to start their small business or want to expand an existing business. These loans are disbursed to them at competitive and attractive interest rates. Loans are hassle free with faster approval rate. The average interest rates on these loans are 11-28% and the repayment term is around three years.
The exclusivity of these small loans benefits the target group because they do not 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 should ensure that they meet the eligibility criteria for these small business loans for women. This includes owning a small business with at least 51% ownership of business/corporate assets. Apart from this, other eligibility criteria like age and average income vary depending on the NBFC or lending institution chosen.
Application procedure
The application procedure for small business loans for women is similar to any other loan application. Applicants should ensure that they meet the eligibility criteria and have the required documents for the loan. It is advisable to research various NBFCs and their loan programs before choosing the one that best suits the needs of the entrepreneur.
A quick practice is to check the EMI rates for these loans through a Business Loan EMI Calculator offered by various lending institutions on their respective websites. This research will give the loan seeker greater confidence in their decision and help to sustainably strengthen their finances.
After that, the loan seeker can contact the NBFC of their choice and submit their application with the required documentation. After reviewing the application and verifying everything, the loan will be disbursed to the applicant.
Conclusion
Small business loans for women have only gotten better over time. Although there have been many instances of small business owners failing to secure the necessary 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 female entrepreneurs in the country.
About Us
Briefing India is produced by Dezan Shira & Associates. The firm assists foreign investors throughout Asia from offices around the world, including in delhi and Bombay. Readers can write to [email protected] for more support on doing business in India.
We also maintain offices or have alliance partners who assist foreign investors in Indonesia, Singapore, Vietnam, Philippines, Malaysia, Thailand, Italy, Germanyand the United Statesin addition to practices Bangladesh and Russia.
