Women are taking the leading role – whether it is in the household or the world of business. Technology, fashion, engineering, healthcare, automobile or finance, there are multiple examples of women who have taken on challenging roles and are proving their mettle.
However, women have found it challenging to source a business loan due to various procedural red-tape and social stigmas. Things are changing for the better thanks to the increased number of non-banking financial institutions and the advent of fintech. There is now a special business loan for women with different eligibility criteria and discounted interest rates too!
As a women entrepreneur, to improve your chances of securing a business loan in a speedier and affordable manner, here are some things you could work upon to make your application stronger.
Make a strong business plan
If you are exploring a new venture, then a good business plan should be your priority. Flesh out every detail of the business and its process. Make a reasonable assessment of the business prospects and compare to industry standards if possible.
Providing an outlook on the financials will help the lender make an informed and faster call on the business loan. A detailed business plan also shows clarity of approach and helps create a good impression. Tata Capital especially provides small business loan for women from the MSME sector that can get help put your plan into action.
Improve your credit score
Your credit score is the first thing a lender will check before disbursing business loans. To improve your chances of securing a business loan, get your free credit report and see if it needs to be improved upon. The better your credit score, the better chances you have of not only getting a bigger business loan amount sanctioned but also at reduced interest rates. Tata Capital has relatively relaxed norms for offering business loan for women at competitive interest rates, starting at just 19%.
Keep all your documents handy
You will need to provide details of your business registration, licences (if any), profit and loss statement for the last two years, previous two years ITR and last six months bank statement, in addition to other personal documents. Having all the documents ready not only creates a good impression but shows your preparedness, in addition to speeding up the process.
Tata Capital provides unsecured business loan for women; if your documents are in order, you could get your loan disbursed in no time.
Assess your requirement for a business loan
While you may want to get as much capital as possible, it is important to consider the implications it may have on your repayment capacity. You should ideally not opt for a loan much higher than what you need. Figure your cash flow status and take a loan amount that you can comfortably service.
Additional Read:- Business Ideas for Entrepreneurial Women
With Tata Capital business loans, you can customize your own repayment schedule. Whether you need a business loan for starting a new venture, fund working capital or expand your business, Tata Capital provides business loan for women from Rs 5 lakh to Rs 75 lakh. With Tata Capital by your side, you can focus on taking your business to new heights without worrying about financing.