In India and the rest of the world, more and more women entrepreneurs are coming to the forefront and taking the lead in shaping business. To support this, several lending institutions are supporting such business initiatives in India by providing financing for women-owned businesses.
This blog post details some of the best ways to get small business loans for women in India, from taking advantage of small business grant programs to trying crowd-funding platforms.
1) Lending institutions give loans to a registered firm
You can acquire a small business loan for women from a lending institution if you are registered as a business. The documentation required includes your business registration certificate, Memorandum and Articles of Association, audited financial statements, and income tax returns.
To secure the loan, you will also need to provide collateral and apply for a business loan, such as property or equipment. In addition, the lending institution will want to see a business plan and proof of your ability to repay the loan. If you can meet these requirements, you should be able to get a business loan from a lending institution in India.
2) No guarantor is required
One of the best ways to get a business loan for women in India is to apply for a business loan from various lending institutions. Loans are available without collateral, which can be utilised for many things like working capital, business growth, etc. Plus, there’s no need for a guarantor, and you can get access to the funds within 24 hours!
3) No collateral is needed
The best part about getting a business loan from several available options is that you don’t need to put up any collateral. It makes it easier for women who want to start a business but may not have the necessary assets to get a loan.
The process is also simpler and faster and can be a huge time-saver.
The interest rates are competitive, making it more affordable in the long run.
4) Shop around and compare rates
It’s important to shop around and compare rates when looking for a business loan. You don’t want to have a high-interest rate loan and fees. Compare the terms and conditions of each loan before you decide which one is right for you.
5) Don’t take large loans
While it can be tempting to take out a large loan when starting a business, it’s important to remember that you will have to repay that loan.
Plus, the interest on business loans can be high, so it’s important only to borrow what you need. There are more ways to fund your company, such as through grants or investors. Before taking out a loan, do your homework and weigh all of your possibilities.
6) Improve your business credit score
When you ask for a loan, one of the most crucial things that lenders take into account is your business’s credit score.
To increase the chances of getting the loan, make your payments on time and keep your balances low. To help establish your credit history, you can also try to apply for a business credit card. Also, avoid using personal credit products, like credit cards, when funding your business.
- Additional techniques to raise your chances of securing a loan approval include:
- 1. Verify if you have a lot of collateral to put up.
- 2. Request a credit-worthy cosigner for your loan.
7) Take a loan from a lending institution (not relatives or friends)
To obtain a company loan from a lending institution, you will need to provide some form of security. A strong business plan and a decent credit score are other requirements. Having a working business relationship with the lending institution is also beneficial.
Conclusion
With the Indian economy on the rise, there has been an increase in the number of women-owned small businesses in India. Studies have shown that around 34% of all Indian entrepreneurs are women, and it’s predicted that the number will only continue to grow as more and more women join the entrepreneurial pool. But starting your own business isn’t easy, and finding the money to get started can be even harder, especially when you’re new.
