All About Business Loans for Women Entrepreneurs - Business Loan Blog - Tata Capital

Business loans for Women Entrepreneurs

Mar 07, 2017

In this male-dominated world, women may find it difficult to establish themselves in the business world. However, the role of women is now changing drastically. Women are shouldering more financial responsibilities and are contributing tremendously to economic growth. The Government of India is encouraging women entrepreneurs through financial support, in terms of low-interest loans and grants.

It is essential that female entrepreneurs have thorough knowledge about various funding schemes and its sources. Having information about business loan eligibility, documents required and interest rates are some factors to be kept in mind while availing a loan. It is important to keep the following tips in mind while seeking a business loan:

  1. Explore your Borrowing Options
    Just like any other financial decision, it is a good idea to research thoroughly before finalizing a single option. There are many lending institutions that have low interest rates for women, along with flexible repayment plans. Women need to compare between financial institutions and banks, and choose the loan which is best-suited for their business needs.
  2. Seek Women-Specific Loans
    A major advantage of women-specific loans is that they have comparatively lower interest rates. Some lenders also offer loan programs that are dedicated exclusively to women. These programs make it easier for women to avail funds for their businesses. Institutions like Tata Capital do not require collateral and guarantors on loans, making it a preferred choice among women entrepreneurs.
  3. Watch Out for Scams
    Unfortunately, there are some predatory lenders in the market who look to make a quick buck by cheating women entrepreneurs. If you find an offer that is too good to be true, ask questions. Only once you are satisfied with the authenticity of the lender, should you go ahead with the loan. Visit only reputable lenders in the industry to avoid getting duped.
  4. Avail MSME Loans if you are Eligible
    Many women in India work in small-scale units. These women may gain financial support through MSME (Micro, Small and Medium Enterprises) loans. MSME loans help women fund their daily business expenses, buy machinery, renovate facilities and expand their businesses. Women may use these funds to open new units for tiffin and catering purposes, beauty parlors, day-care centers and many more.
  5. How to Apply for Business Loans
    The process of getting a business loan for women is not difficult. After submitting the duly-filled application form and required documents, the processing does not take too long. Various lending institutions have their own eligibility criteria, interest rates, loan repayment plans and loan tenures. You may determine your monthly EMI amount by using a business loan EMI calculator. It saves tedious financial calculations and is easy to use.

Establishing a business may certainly be a daunting task, especially for women entrepreneurs. It is important to weigh your options before finalizing on a particular loan. With the right type of finance and a plan on how to utilize the cash, women can position themselves for entrepreneurial success.