The start-up landscape in India has amazingly progressed in the past decade. The latest figures indicate that around 14% of Indian entrepreneurs are women, and the ratio will only likely increase in the coming years. Apart from creating job opportunities in the country, these women entrepreneurs contribute significantly to the nation’s GDP. Moreover, the Indian government has launched several women entrepreneurs’ loan schemes, supporting females to manage their businesses confidently. Once well-established, every business needs finances to stay operational and grow. Let’s look at a few financing options for women-owned companies in India.
MSME Finance
Many lending institutions offer MSME finance to women entrepreneurs with a decent vintage and turnover over the last few months. These are collateral-free loans female entrepreneurs can get without any collateral, guarantor, or security. Whether they need a term loan, working capital loan or a line of credit, MSME finance can be the best capital finance loan option for both new and existing businesses.
Instant Online Business Loans
Owing to the limited time new entrepreneurs have at their disposal and more women becoming savvy with web technology, instant Business Loans have recently gained immense popularity. The application procedure for such loans is completely online, requiring no branch visits and minimal paperwork. Automated systems make the required financing accessible within a few hours, making them the best capital finance loan option for urgent business needs. Moreover, they offer ample loan amounts, competitive interest rates, and flexible repayment terms to make debt management easy for the borrowers. For example – Female entrepreneurs in India can get quick Business Loans ranging from Rs 50,000 to Rs 2 Crore from leading FinTech business finance providers in India, like Lendingkart.
MSME Credit Card
Many credit providers provide MSME credit cards that give access to flexible credit, letting the cardholders manage their business expenses. Apart from handling business operations, cardholders can enjoy exclusive benefits through sign-up bonuses, cashbacks, and reward points. A female entrepreneur can use her card to obtain easy credit on demand and repay it gradually via card bills.
Gold Loans
Every Indian woman holds at least a few grams of gold in the form of jewellery. Rather than keeping them unused in lockers, why not unlock their value by taking a gold loan against them. The market for gold loans is huge in India. Moreover, finance companies process these loans quickly at competitive interest rates. Considering the increasing gold prices with each passing day, female entrepreneurs can utilise their gold assets to finance their business operations. As soon as they repay the borrowed amount, they can get their gold back.
Loans Under Government Schemes
Taking advantage of the Indian government schemes is the best strategy to obtain business finance. Most of these schemes aim to provide quick women entrepreneurs loan at low-interest rates. An eligible borrower may choose a loan according to their needs.
The Indian government has launched several schemes to boost female entrepreneurship in the country. Some popular loan schemes are:
- Stree Shakti Yojna: To apply for a loan under this scheme, a woman should own at least 51% of the business. It offers collateral-free loans up to Rs 10 Lakh for agriculture, retail, education, microcredit, and housing industries.
- Mudra Yojna Scheme: Women planning to launch their business may get unsecured funding under this scheme. It distributes loans into three categories based on the loan amount: Shishu loans up to Rs 50,000, Kishore loans from Rs 50,000 to Rs 5 Lakh, and Tarun loans from Rs 5 Lakh to 10 Lakh.
- Udyogini Scheme: The scheme provides financial assistance to female entrepreneurs from 18 to 55 years of age. However, this scheme has a minimum turnover requirement to qualify.
- Annapurna Yojna Scheme: Females planning to establish a catering business may get a loan of up to Rs 50,000 under this scheme. For instance, those planning to sell packaged food for breakfast, lunch or dinner can borrow these loans and repay them in 36 months.
- Cent Kalyani Scheme: An initiative by the Central Bank of India, the scheme offers collateral-free loans to women willing to launch a business. The bank has a budget of Rs 100 Lakh to support female business owners financially.
- Synd Mahila Shakti Scheme: The Canara Bank provides this scheme to new and existing women entrepreneurs. The only condition is that a woman should have at least 50% of the business stake. The bank also provides free credit cards to cover the company’s functional requirements.
In short, borrowing a women entrepreneurs loan in India is simpler now than ever. The introduction of several loan schemes has made it easier for women to grow their businesses. Since several loan providers offer capital finance loan options to female entrepreneurs, one must approach practical solutions to obtain a custom-made solution. Moreover, once the lender sanctions the loan, it’s crucial to use the loan amount responsibly and repay it on time to build a reputation and enhance the credit score.