Once an exclusively male domain, the world of business is now seeing a record number of women entrepreneurs. As per the Sixth Economic Census released by the Ministry of Statistics and Programme implementation in 2018, 14% of the total 58.5 million entrepreneur populace is women.
When women business owners or start-up founders venture into this territory, they face an even greater number of challenges than men. Prime among them is raising capital for running operations and expanding.
Business loans for women can help you expand your customer base, hire the right team, and ultimately grow your small business. Here are five secrets of small and start-up business loans for women entrepreneurs.
1. Easy Availability
There is a variety of lenders in India more than willing to offer business loans for women at attractive interest rates. If you have a strong business proposition and a plan for growing in the long run, you can apply for a women entrepreneur loan without any second thoughts.
2. You Don’t Need a Stellar Credit Score
Women that are kick-starting their venture require a good amount of initial funding, something which start-up business loans for women offer. While a good credit score is essential, business loans for women are approved based on their business plans. If you have a strong business proposition and growth plan, the credit score requirements can be relaxed. All you need is a great business idea to raise funding.
3. No Restrictions on Usage
Business loans for women can be used for a variety of purposes – purchasing new equipment, hiring staff, marketing, etc. Once a lender disburses your loan amount, you are free to use it in any manner you desire for running or growing your business.
Additional Read:- Top 4 Investment Tips for Women to Start Their Financial Journey
4. Collateral-free Funding
Women who are just starting out often find it difficult to pledge security to a loan. Numerous business loans for women are available in the market today that are collateral-free. This makes them a perfect choice for businesswomen looking for a women entrepreneur loan without offering a physical asset to the lender.
5. Easy Application and Fast Disbursal
Women entrepreneur loans are easy to apply for than other funding alternatives. With the entire process completed online, there are lower chances of bias that may creep in otherwise. You only need to submit some basic documents like business proof, KYC documents, bank account statements and financial statements. Once the lender receives these, the loan for women’s disbursal takes less than a week.
Additional Read:- How to Improve Your Eligibility For a Business Loan For Women
There is a variety of loans for women available in the Indian market and can be truly called women empowerment loans since they enable countless women to realise their dreams. What’s more, business loan for women come with several features that make them particularly suited for women beginning their entrepreneurial careers. At Tata Capital, the aspirations of young women in entrepreneurial ventures are valued and given all the financial support they require.