5 Best Ways Women Entrepreneurs In India Can Avail Business Loans

Women have always been at the forefront of any new progression. Women entrepreneurship dates back to ancient times. They have continued the tradition and have made a niche for themselves in the modern business world as well. It is important that they receive the right kind of funding at the right time to develop and expand their businesses.

Here are 5 best ways in which women entrepreneurs can get business loans in India

1. Small Business Finance

Small Business Loans or MSME Business Loans are a good option to avail financing for your business.

• Loans can be availed by existing businesses with a good track record
• Loans can be in the form of term loans, working capital loans or lines of credit
• Available for both new businesses and existing ones
• Both secured and unsecured funding options are available

2. Government Schemes

This is the next best option available for women entrepreneurs. These schemes come with low-interest rates. There are both secured and unsecured loans to suit your needs. The government has introduced a number of schemes that boost women business owners with the required funding. Some of the popular schemes are:

• Annapurna Scheme
• Bharatiya Mahila Bank Business Loan
• Mudra Yojana Scheme
• Pradhan Mantri Rozgar Yojana
• Udyogini Scheme
• Mahila Udyam Nidhi Scheme

3. Instant Online Business Loans

This loan type has gained popularity in recent times. These business loans are instant loans that are processed based on your credit score. The loan process is completely online and is processed within 24 hours to put the much-needed funds in your hands. Many of them are collateral-free loans. They come with high loan amounts and similarly high-interest rates. But the repayment tenure is short and if you are really good with money management, you can reap good benefits out of these loans. Some of the popular ‘Online Instant Business Loan’ apps are:

• CASHe
• Ziploan
• Rupeelend
• Finserv MARKETS App
• Capital First (from IDFC First Bank)

4. Loan against Securities & Government Bonds

If you have investments in the stock market, mutual fund or government bonds, you can pledge them in the bank to get a loan. Since these are secured loans, the interest rate is lower compared to other loan types. They also have a quicker turnaround time and flexible repayment option. You can get up to 75% of the pledged securities as the loan amount.

5. Gold Loan

This may sound cliché, but who else is more eligible for a gold loan than Indian women. We do not shy from buying gold jewellery, so why not use it for the betterment of your business? The gold loan market in India is quite huge, supplying around 4 lakh crore rupees into the economy. Gold loans are processed quickly and come with very competitive interest rates in the current market. Borrowers need not worry about monthly repayments as most gold loans have a single repayment at the end of one year, along with the interest amount. You can get up to 90% of the gold value as the loan amount.

Key Takeaways

• Women entrepreneurs have a slight advantage in the lending market owing to various government schemes and measures.
• Women business owners should educate themselves and be aware of the best funding options in the market.