Types of Loans for Women in Business

Women in India have proven time and time again that they are capable of anything they put their minds to, from running their own businesses to running the whole country.

Kalpana Saroj, the CEO of Kamani Tubes, is considered to be the first female entrepreneur in India, and her story is nothing short of inspiring.

This is one of the many examples showing that being a woman entrepreneur in India is not an easy path; there are many hurdles along the way that must be overcome in order to establish a successful business.

If the nature of the business is cash intensive, it can pose more challenges to an individual. Most times, women entrepreneurs in India need financial support to grow their businesses.

A sustainable line of credit or funds can always help their business reach new heights.

There are many different types of loans for women for business that are available on the market today. In this article, we will tell you how you, as a female entrepreneur, can use loans to grow your business, or even start one.

In case you want help to figure out which business to start, here are some business ideas for women that you can consider.

Importance of Loans for Women Entrepreneurs in India

Before we tell you how important loans are and how they can help your business, let’s see some interesting stats about women entrepreneurs in India.

1. According to a study done by Bain & Company, there are currently about 13.5 to 15.7 million women-owned enterprises in India.
2. A survey conducted by Forbes showed that female entrepreneurs comprise 13.76% of the total entrepreneurs in India, and own 20.37% of the MSMEs.

Sounds impressive, right? We still have a long way to go, though. Women-owned businesses often face a lack of financial backing, and that’s exactly where loans come into the picture.

Financial planning is important for all businesses, especially women-owned ones because sourcing funding can be more difficult for them. Women entrepreneurs turn down business opportunities due to lack of funds, but they don’t need to.

The simple solution to this problem is to get loans. Let’s look at the types of loans women entrepreneurs can consider…

Types of Loans for Women for Business

Without further ado, let’s discuss the different types of loans available to women for business purposes.

1. Small Business Finance

Generally, there are many options available from banks, credit unions, and online lenders. Small business loans from women are available through various avenues but the advantages and disadvantages of each should be reviewed thoroughly before the entrepreneur makes a final decision. Apart from the standard loans available, there are options that are specific to the nature of the business such as grants from non-profit organizations, government agencies, and private corporations.

2. Instant Online Business Loan

Instant loans, even though a fairly recent concept in our country, have gained immense popularity, and with good reason.

Online instant loans have a lot of advantages over traditional lending, with fast approvals, disbursal's, and convenience, and they also provide freedom to use funds however borrowers deem fit for their businesses.

In fact, most online lenders have personal loans for women, especially to help them with their businesses.

3. Loan Against Securities & Government Bonds

Secured loans and government bonds are not the newest addition to the entrepreneurial lending portfolio, but they have always been there to help entrepreneurs in times of need.

Agreed, these types of loans are a bit less convenient to avail and require more documentation, etc., but they have been trusted by business owners everywhere to help them ease their financial requirements.

Government bonds are another option that people trust because these bonds are issued by the government with fixed interest rates.

4. Gold Loan

Gold loan is one option women entrepreneurs can consider, as most women in India have some gold at their disposal. The lender keeps your gold as collateral, and provides you with cash in return.

The main benefit these loans provide is that they levy lower interest rates as compared to unsecured loans.

5. Government Loan Schemes for Women Entrepreneurs

In order to encourage the boom of startups and small businesses in India, the government has implemented several schemes and policies that make life easier for small business owners and entrepreneurs. The government, along with other banks and corporations has also launched a number of schemes that are specific to women entrepreneurs.

The schemes come in various forms under different kinds of packages. If all the requirements are fulfilled and the verification processes are successful, a woman entrepreneur can use these schemes to get loans even going up to ₹20 lakhs. As they are backed by the government and big corporations, the banks or lenders will offer attractive rates of interest and convenient repayment tenures. These loans are meant to encourage women entrepreneurs specifically and to help them grow their business in leaps and bounds, eventually contributing to the Indian economy on a large scale.

1. Bharatiya Mahila Bank Business Loan
2. Mudra Yojana Scheme
3. Pradhan Mantri Rozgar Yojana
4. Udyogini Scheme
5. Mahila Udyam Nidhi Scheme
6. Stree Shakti Yojana
7. Cent Kalyani Scheme
8. Dena Shakti Scheme

Conclusion

This brings us to the end of this article, and we hope you now have found a way to raise funds for your business from the options listed above.

Running a business is tricky as it is, but you can ease your financial troubles by availing easy credit and living stress-free with quick personal loans on KreditBee.