Empowering Women Entrepreneurs: Applying for a Business Loan
Published: Jan 30, 2023
In recent times, more and more women are chasing entrepreneur dreams and flourishing in the business world. The increasing presence of women entrepreneurs has also supported the country’s economic development and growth. Women entrepreneurs are generating employment opportunities, affecting demographic shifts, and inspiring the next generation of girls to become the next leaders.
Small Business Loans for Women
As more women are coming up with innovative concepts for startups, the demand for small business loans for women have also been rising, to help these entrepreneurs fund their growth. Positive interventions in the MSME sector by the government and several financial institutions have helped increase the participation of women in the growth of the Indian economy.
A small business loan can be availed by a female entrepreneur at low interest rates and flexible repayment options for a running or new business. A business loan specifically designed for women generally has the following features:
●Easy to Avail: To get a loan, the entrepreneur only needs to submit a strong business plan, sales projections, and a good credit profile to the lender.
●Flexible Usage: When women avail a business loan, they can utilise the funds to replenish stocks, purchase machinery, expand, and much more.
●Collateral-Free: When women apply for a business loan, all they need to do is meet the minimum eligibility criteria of the lender to get the funds. They can also add a co-applicant in case they fall short of the requirements.
●Flexible Usage: When women avail a business loan, they can utilise the funds to replenish stocks, purchase machinery, expand, and much more.
●Collateral-Free: When women apply for a business loan, all they need to do is meet the minimum eligibility criteria of the lender to get the funds. They can also add a co-applicant in case they fall short of the requirements.
How to Apply for a Small Business Loan
Small business loans offer a number of advantages for women entrepreneurs. Here’s how to apply for one:
Understand Your Requirements
Before you can apply for a small business loan, you need to understand what you are looking for. Analyse your present business situation and outline the changes you want to bring, your growth plan, and what you need to achieve it. This will help you decide exactly what you need from a small business loan.
Do Some Research
As mentioned, there are several financial institutions offering small business loans for women. So, before applying, do some research and find out who is offering the best schemes and whose offerings are perfect for your requirements.
Look for a Good Interest Rate
Though the average interest rates offered for small business loans for women are quite low, it will not hurt to ensure you are applying for a loan that offers the best benefits.
Check Your Eligibility
Generally, institutions have very simple eligibility requirements that you must meet in order to apply for a small business loan. However, before you apply, go through the eligibility requirements and ensure you meet them, in order to avoid application rejection. In case you are falling short of the criteria, you can consider adding a co-applicant for the loan.
The Application Process
Most lenders have very simple and easy application processes in place for business loans for women. Many even offer online application processes for enhanced ease. Though the exact process may vary from lender to lender, it generally includes the following steps:
1.Fill up an application.
2.Submit all the required documents.
3.Document verification will be done.
4.The sanction letter will be sent to the applicant.
5.The loan amount is credited directly to the applicant’s account.
2.Submit all the required documents.
3.Document verification will be done.
4.The sanction letter will be sent to the applicant.
5.The loan amount is credited directly to the applicant’s account.
Capri Loans, with the aim to promote female entrepreneurship in India, offers a special financial solution, ‘Wishwas’, which is designed to help women become socially and economically independent through their enterprises. Wishwas is available for women between the ages of 18 and 45 years, who have been running their own business for a year. Under Wishwas, Capri Loans offers a range of flexible and customised finance solutions for women entrepreneurs.