Being financially independent is important for everyone. And starting a business is the fastest way to acquire that independence. Today, many homemakers are looking to launch their businesses while carrying the household on their backs.
However, in business, one needs ‘to spend money to make money.’ This initial capital requirement is one major hurdle between homemakers and financial independence. Even though the market has plenty of personal loan schemes to procure the necessary funding, these borrowing instruments have strict income requirements, which homemakers might not fulfil.
With that said, there are several workarounds to personal finance that you can explore to fund your venture.
Get a co-applicant on board
If you can’t meet the income criteria, a salaried co-applicant can be an instant help. The co-applicant can either be your spouse or your parents.
The loan amount you receive will depend directly on the salary and repayment capability of the co-applicant. Moreover, after the loan disbursal, the burden of paying off the EMIs falls on the shoulder of the co-borrower. So, it’s best to fine-tune your EMI amount using a personal loan EMI calculator first.
Add a loan guarantor
If you’re confident that your business will take off in the future and generate sufficient revenue, you can take a loan with a guarantor. Essentially, the guarantor promises to pay back the loan if you (the primary borrower) can’t make the repayments.
However, lenders only approve of a guarantor if they have an immaculate credit record, a steady income source, and fulfil all other personal loan eligibility criteria.
Additional Read: What is the highest personal loan amount one can apply for?
Take a secured loan
If the co-applicant or guarantor way doesn’t work out, you also have the option of borrowing a secured personal finance loan. To procure this loan, you essentially need to pledge any valuable or asset as collateral, such as gold, property, vehicle, equity, FDs, etc.
With a secured loan, you can overcome the stringent income requirements and get enough funding to kickstart your business. The best part? Pledging collateral can also get you discounts on personal loan interest ratesdepending on the lender’s policies.
Explore government schemes
The central government has also launched several projects, including the Prime Minister Mudra Yojana, offer financial support to aspiring women entrepreneurs. Under this scheme, women homemakers can get a secured loan amount between Rs. 50,000 to Rs. 50,00,000.
You also have access to unsecured loan options, with the upper limit being Rs. 10,00,000. Both banks and NBFCs offer loans under this scheme.
Additional Read: Things To Do If Your Personal Loan Gets Declined
By conducting in-depth research of your required finances, comparing multiple loan deals, and exploring various government schemes, homemakers can comfortably get a loan. Once you acquire the funding, you’ll be off to realising your dream business venture in no time.
Looking for a personal loan for housewives? Tata Capital’s personal finance loans can take care of all your business dreams! Competitive interest rates, fast disbursals, and an easy application process – that’s our promise.
Start your entrepreneurial hustle by applying for our loan today!