India being an emerging economy, it is no surprise that small businesses, entrepreneurs, and start-ups are increasingly becoming a significant contributors to the country’s economic growth as well as development. 95% of the industrial units of the country are small businesses and they contribute to almost 45% of total exports from India. Also, interesting to note is the flight of women entrepreneurs. Today India has 13.5 – 15.7 million such enterprises that are owned by women. They are transitioning into a lead role in the small business and commercial space. This trend can be further corroborated by the increasing opportunities for business loans for women. Several financial institutions have come up with custom-made low-interest business loans for women entrepreneurs to help them in their path to entrepreneurship and economic progress.
Features of Business Loan for Women
Some of the basic features of business loans for women are –
Easy and hassle-free availability –
These loans are specifically designed for budding women entrepreneurs. The objective is to assist them financially and make the process easy and convenient for them.
Competitive interest rates –
The loan lender evaluates the health of the business, and if there is a good history and no major defaults, one can get a significantly low-interest business loan.
Flexible tenure –
These business loans for women essentially have long and flexible tenures of repayment. This is done so that they do not have to burden themselves with the repayment conditions and plan the same with ease.
Flexible usage –
Whether you need funds to infuse capital, buy pieces of equipment or expand your staff business, or need to set up a new office – as a woman entrepreneur you are all sorted with the business loans for women.
Collateral-free business loan –
These low-interest business loans are also unsecured– that is the women business owner is not required to keep any of her assets as collateral against the loan. This ensures that in pursuit of financial assistance for their business, they don’t have to deal with tertiary financial burdens.
Pre-approved loans –
If you are an existing customer of Hero FinCorp, have a good credit score and have a clean record, you can get the benefit of getting a pre-approved loan from us. These loans are pre-evaluated and do not require any further evaluation for approval. Also, these pre-approved business loans are usually low-interest business loans.
No profit-sharing –
Getting a business loan is probably one of the best options for such women entrepreneurs who are seeking to raise funds for their businesses. This is because in a business loan they don’t have to share profit. They just have to pay back the principal amount and the interest along with the processing fee.
All the round loan management –
With Hero FinCorp, you get 24*7 support services for your business loan. For any doubt or queries the women entrepreneurs will find a dedicated team at their service as and when they need.
Simple Eligibility and Document Requirements
To avail the loan, one needs to meet a handful of eligibility and document requirements only. These usually span across the age of the borrower, the income, city of residence, credit score of the individual and the business, and such other pertinent aspects.
As a proof of such eligibility fulfilment, you need to provide necessary documents and complete paperwork. You must also complete KYC with your lender with necessary ID and address proofs if you haven’t had previous customer relations with the financial institution. When applying for your loan online, keep soft copies of these documents handy for easy paperwork completion. In case the submission is not required during the application, some lenders also provide doorstep document collection facility so borrowers do not have to step out for getting their business loans for women.
Eligibility Criteria for a Business Loan for Women –
- The basic criteria is that the borrowing woman should be the owner of the business or hold at least a 51 % stake in the business.
- The borrower must be a citizen of India
- They should be in the age bracket of 24 to 70 years. At the time of the loan maturity, the borrower should not be more than 70 years of age.
- The business should be in operation for at least 2 years.
- The business should not fall under the blacklisted/excluded list for SBA finance.
- High credit scores have better chances of approval.
- The borrower should not have any criminal record or financial default record.
Documents Required for Business Loan for Women
Below is the list of documents that are required by a women entrepreneur to get a business loan –
- Duly filled application form
- Identity proof
- Address proof
- CIBIL score
- Profit and Loss statement for last 6 months
- Proof of business ownership
- PAN card
More and more such avenues are increasingly opening up that offer business loans for women. And constant efforts are made to make them easily accessible as well as repayable. If you are a women entrepreneur and need funds for your business, then don’t wait – connect with us at the earliest.