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About Loan for Businesswomen
Women are no longer dependant on men for finances. They are increasingly joining the workforce in the corporate sector. Not just that, they are exploring their inner potential to start their own ventures. There is no area where women have not started their operations. Earlier it was just limited to beauty, diet, nutrition, and fashion, but today Indian women are exploring innovative segments in Technology, Finance, Human Resources, Healthcare, etc.
From just selling and pledging their jewellery and personal assets to raise capital, women are now seeking formal sources of financing such as Business Loans. They are educated enough to draw their business plan and have a proforma business model to convince lenders about the profitability and stability of their venture. On the other hand, even banks are keen on supporting women in their business venture, hence they offer loans with unique features and attractive rates. The banks have also relaxed a lot of conditions required for women entrepreneurs. Some financial institutions are also thoughtful enough to set up support & training centres for businesswomen to enhance their skill sets.Features of Loans for Businesswomen
The loans for businesswomen have unique features:
- The quantum of loans offered as loans to businesswomen are high. Some banks easily offer loans in the range of INR 30 Lakhs to INR 50 lakhs.
- Women can avail loan for any purpose of the business which includes everything right from purchasing new machinery, installing a software, catering to a new market, advanced skill training for self or staff, purchase of raw material, marketing fund, etc.
- The loans can be paid back in easy instalments over a fairly long tenure ranging from 1 year to 10 years in some cases.
- The small business loans for women are unsecured loans and do not require any collateral. So, there is no hassle of pledging or hypothecating any asset or bringing in a co-signor.
- The documentation required for Business loans for women in minimal. In most cases, only the basic proof of income and identity is required.
- The approval of the loan is quick. Some banks even approve the loan online within 24-72 hours. Even the charges associated with these loans are minimal.
What are the documents required for business loans for women?
The documents required for availing business loans are:
- A photocopy of the Business Registration Certificate
- Your KYC documents which include your valid identity proofs
- GST returns for the past one year
- Income Tax returns for the past two years.
- Last six months bank statement
- Any letter for loans or overdraft sanction
Top Loan Schemes for Businesswomen
SBI- Stree Shakti Package :
The eligibility for this loan is that the women must have 50% ownership in the small business. The applicant has to undergo the Entrepreneurship Development Programmes (EDP) arranged by the state agency. There is an interest reduction of 0.05% for loans above INR 2 lakhs.
Annapurna Scheme by the Government of India :
Under this scheme, the woman entrepreneur should be the operator of the individual business or partnership firm, mainly in the food catering business. The loan is available up to Rs 50,000 and can be repaid in 36 instalments. The loan can be availed for any purpose ranging from buying utensils to machinery, to packing material. There are collateral and guarantor required for this loan.Cent Kalyani Scheme :
Offered by the Central Bank of India, this loan can be availed by anyone who wants to start a new business. This loan can be availed by experienced as well as fresh women entrepreneurs. This loan is also extended to those engaged in agriculture and the associated sector as well.
Dena Shakti Scheme :
This is loan is offered by Dena Bank to women engaged in the manufacturing and agricultural sectors. Women managing a small enterprise, or retail stores can also avail this loan. The interest reduction available on this loan is 0.25%.
Udyogini Scheme :
The Punjab and Sind bank offers this scheme. This loan can be availed by anyone who is operating a business in the microcredit sector and small enterprise or retail sector.
Mahila Udyam Nidhi Scheme :
This loan is offered by the Small Industries Development Bank of India (SIDBI). Under this loan, women entrepreneurs can avail a loan of up to Rs 10 lakhs to establish a small-scale venture.
Bharatiya Mahila Bank Business Loan :
Under this scheme, there is loan disbursal for new ventures in the field of retail, MICRO and SME loans. The maximum loans availed under this scheme can go up to Rs 20 crores. There is no need for collateral security till Rs 1 crore. The interest concession available for the loan is 0.25%.
Frequently Asked Questions: Loans for Businesswomen
1. What are the criteria for applying for a business loan for women?
Any women, whether experienced or starting off a new venture, can avail a business loan. She can use the loan to begin a small-scale business in any sector. Some banks offer customised loans for women of a particular sector and experience.
2. What is the use of business loan for women?
A woman can use the business loan for any purpose related to the business. It can be renting a new place, buying software or machinery, buying raw material, funding a marketing campaign, or any function related to the business.
3. What are interest rates for business loans for women?
The interest rates for business loans for women are very competitive. It starts at 10% p.a. Some schemes even offer interest rate concession.
4 What is the quantum of loan that can be availed?
It varies across banks and financial institutions. Some banks and schemes even offer loans up to crores of Rupees.
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