How Can Women Entrepreneur Avail Business Loan in India?

When you apply for a Business Loan, the financial lenders check the previous financial profile of the Loan Applicant. You must ensure that the business flow is stable and whatever profit or losses your business faces, it is preferred if you mention it in your cash flow as well.

How Can Women Entrepreneur Avail Business Loan in India?
By: Sponsored
Updated: 27 Sep 2019 06:10 PM
Business Loan for women in India can be availed by all the women entrepreneurs. Most of the Indian banks as well as the Non-Banking Financial Companies offer business loan for self-employed, professionals and women. Having a business, be it small or big often comes with a lot of challenges. It requires a lot of research, manpower, the right funding, security, hiring and the list continues. To make the entire process a little simpler, the financial institutions provide all the necessary information which can help you avail the best business loan suiting your financial capability. Here are a few options in business loan for women entrepreneurs in India. These Business loan can be applied online as well as offline.

Business Loan for Women Entrepreneurs


 

DENA SHAKTI SCHEME

Women above the age of 18 years, whether salaried, self-employed, housewives, student, in Govt or Private sector can apply for Dena Shakti Scheme. This Business Loan is offered by Dena Bank and some of the activities that are included in this scheme is education, housing, Agricultural activities, MSME enterprises etc. The maximum Loan Amount that is offered under this scheme is Rs 20 Lakh. The Interest Rate of this scheme depends on the financial profile of the loan applicant, age, location and the repayment capability etc. To apply for Dena Shakti Scheme, you can visit the nearest Dena Bank branch near you or call their customer care executives.

STREE SHAKTI PACKAGE

This Business Loan Scheme is offered by the State Bank of India with some of its unique features. Stree Shakti Package is aimed at helping women entrepreneurs who have more than 50% capital owned by them. Another unique feature is that State Bank of India does not require any security for Business Loan Amount up to Rs 5 Lakh. So, the small-scale business can be benefited from this scheme. In case the Loan Amount is exceeding beyond Rs 2 Lakh, the Interest Rate is lowered by 0.5%. The Interest Rate also depends on the Loan Amount that is being applied for.

SYND MAHILA SHAKTI

This Business Loan is offered by Syndicate Bank. It is for new/existing Women entrepreneurs. Synd Mahila Scheme offers maximum of Rs 5 crore as the loan amount, with interest rate depending on the loan applicant’s financial profile. Women entrepreneurs who have knowledge and experience in the field of business and women with technical education background can apply for this business loan scheme.

CENT KALYANI SCHEME

Cent Kalyani scheme focuses on encouraging women to start a new business of their own or the ones with the existing business can expand their business ventures. Women entrepreneurs can start small scale businesses like hand loom or weaving, designing, tailoring, financing two or three wheeler etc. The day to day financial expenditure can be met with this business loan. The maximum loan amount one can avail in this scheme is Rs 100 Lakh.

PNB MAHILA UDYAM NIDHI SCHEME

Punjab National Bank offers this scheme designed only for women entrepreneurs. This Loan Scheme can be availed for small scale business or for the purpose of upgrading or modernization of the technology. PNB offers three more Loan Schemes for Women: PNB Mahila Samridhi Yojana, Scheme for Financing creches, PNB Kalyani Card Scheme and PNB Mahila Sashaktikaran Abhiyan.

Some Common Tips to Avail Business Loan for Women

While most of us keep getting educated about the different pros and cons of the Business Loan from various sources, it is important to have a basic knowledge before applying for the same. Here are some key points to keep in mind -

  • Having a good Credit Score


Yes, this remains one of the most important points when it comes to availing any loan for that matter. The Credit score is checked by all the financial institutions before accepting or rejecting your Loan Application. A good credit score usually starts from 750, so just in case your credit score is not up to the mark, it might be time to work on it before you apply for a business loan.

  • If possible, Opt for a Collateral Free Loan


Collateral Free Loans are much more convenient and considered secure at the same time. Business Loans are mostly offered on the basis of the creditworthiness of the Loan Applicant. A secured business loan will ask for an asset as a security or a collateral for the Loan you have applied for. Mostly because of this reason, people prefer unsecured/collateral free loan over the secured loans.

  • Choose a Business Loan that is for Women Entrepreneurs


This remains one of the most vital aspect of the Loan Process. You should research for the Business Loan which are designed specifically for the women entrepreneurs. These Loans have flexible repayment tenure and the eligibility criteria varies accordingly.

  • Have a Stable Cash Flow


When you apply for a Business Loan, the financial lenders check the previous financial profile of the Loan Applicant. You must ensure that the business flow is stable and whatever profit or losses your business faces, it is preferred if you mention it in your cash flow as well.

Basic Eligibility Criteria for Business Loan for Women Entrepreneurs

  1. The Loan Applicant should be at least 21 years of age to apply for a Business Loan

  2. Women Entrepreneurs should have been in the same business for at least 3 years.

  3. A copy of the Income Tax Return is mandatory

  4. The Annual Business Turnover should be at least Rs 50 Lakh, though this mostly depends on the financial lender you have approached. The Business Turnover depends from financial lender to lender

  5. Loan Applicant should be a self-employed individual from a limited or a private limited firm


 

Features of Business Loan

  • Attractive Interest Rate


Business Loan Interest Rate for Women Entrepreneurs are mostly competitive which comes along with various deals and offers as well. The entire process of applying for a Business Loan is online therefore there is no manual intervention thus making it a smooth process. Business Loan Interest Rate though varies for different financial lender.

  • No/Less Penalties on Early Repayment


Some of the NBFC and Banks offer less or absolutely no penalty to early repayment. There are no hidden fees or charges applied to it.

  • High Loan Amount


Women Entrepreneurs can easily avail a high loan amount depending on the financial requirement. The loan amount starts from Rs 50,000 to Rs 1 Crore, again depending on the financial profile one has and the past credit history.

  • Top Up Loan Facility


One can also avail the facility of top up loan on the on-going Business Loan. The top up loans are available for new as well as existing Loan Applicants.

With these many benefits available, a woman entrepreneur willing to make her mark in the industry should definitely apply for a business loan to fulfil her dreams.

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