Business loans for women is the latest major drive by the Government of India. A business can be difficult to manage with each step of the way new challenges are needed to be death with. Whether you are big or small a business not only gives employment to people but also contributes to the GDP of the country and above all helps you earn a livelihood. But add to the equation that you are a woman things become a little difficult in India. To level the situation, many public and private banks as well as the government has made special provisions for women who are in the world of business.
To apply for instant business loans easily, you have to prove that you are a woman entrepreneur or a share-holder in a small business. The most important criteria for your eligibility would be – either complete ownership of the small/micro-enterprise or at least 51% stake in the joint partnership. The other requirements are as follows:
Easy Documentation for Business Loan
- Duly filled application form and passport-sized photograph of the applicant.
- Bank statements for the previous 6 months and Tax audit reports, balance sheet, VAT returns and other financials.
- PAN card and address proof of proprietors and/or business entity.
- Current year performance and projected turnover.
- KYC documents like business entity proof, partnership deed, establishment certificate, incorporation certificate, article of association etc.
How to get a working capital loan in India?
The eligibility requirements to apply for a working capital loan are:
- Your business must have been operational for at least two years.
- You must show a minimum turnover in the last three months, depending on your lender’s policy.
- Your business should not fall under the excluded list for SBA finance.
- Your business must have a physical location within the geographical limit set by your lender.
- Your business should have a credible financial history of profits.
- Your business must have maintained a minimum CIBIL score of 700.
It is worth noting that NGOs, Trusts, and charitable organizations are not eligible for working capital loans.
Once you have decided on the reason and the amount of loan, look up various borrowing options. Next step is to prepare your business plan, prepare a presentation and make an appointment. Check your credit history and your eligibility before taking your plunge.
Benefits of Small Business Loan
There are many advantages to small business loans. Concession in interest rates is one advantage – be it from banks like SBI or preferential rates from NBFCs like Fullerton India. Second is the easy accessibility from leading NBFCs and banks due to the drive and focus from the government. Easy EMIs and custom payment options are the benefits that women can enjoy. Women also enjoy several government schemes drafted to support small businesses. One of which is Pradhan Mantri Mudra Yojana.
Banks offer PMMY as a loan to startups, and business owners, and also for women entrepreneurs belonging to both urban & rural areas.
· Features: It’s a collateral-free loan with zero processing fee. It is divided into categories that are Shishu, Kishore, and Tarun.
· Eligibility: The age of women entrepreneurs must be between 18 to 65 years.
· Maximum amount of Loan: Women can take a maximum of 10 lakhs loan amount from the lender under this scheme.
· Repayment time: The maximum time of a PMMY loan is 5 years.
· Interest Rates:  It depends on the profile of the applicant & the amount required for the business.
Finally, small and medium businesses are growing fast. Unlike earlier, where social issues would inhibit women from getting loans; the current transformation has made getting business loans for women easier. If you have zeal and enthusiasm, why hesitate?
Also Read: Can You Get a Plot Loan If You Don’t Construct the House on the Plot?
