India has the most vibrant start-up ecosystem. It is a developing country that offers countless opportunities for women. It is attracting investors from foreign countries and has led to a surge in the number of women entrepreneurs. A lot of women are ditching their stable jobs and stepping out of their households to run a successful business. A major reason why there is a rise in the number of women in the eco-system is the easy availability of funds. Right from financial institutions to government schemes, there are many options for a business loan for women in India. Here are the top options for you to consider.
- Commercial business loan
If you own a business and are looking for funds to expand it, you should consider commercial business loans. The loan is specially designed for medium scale businesses that want to expand the operations. It does not need collateral and you can also enjoy instant online approval. In a commercial business loan, you can apply for an amount as high as Rs. 50 lakhs and it has a tenure of up to 5 years. The loan is offered to businesses that are in existence for at least one year and have all the business proofs. Many lenders offer a pre-payment facility so you can repay the loan before the tenure and reduce the interest burden.
2. Small business finance
A large number of financial institutions offer loans specially designed for small businesses. These loans are available for all existing businesses but the eligibility criteria remain stringent. When you repay the loan, you need to pay interest on the amount that you have actually used and not on the entire credit limit. You can choose between secured and unsecured funding and enjoy an affordable interest rate.
3. Personal loan
If you want to start a home-based business and are in need of funds, consider a personal loan. It is an unsecured loan that needs no hypothecation of security. The loan is offered based on your eligibility criteria, credit score, and income. You can also add a co-applicant like your partner to increase the eligibility and loan amount. A lot of lenders offer an amount as high as Rs.50 lakh for a tenure of five years. It is one of the most flexible types of loan and you can use it for personal or professional requirements in the business. The loan can help meet the day to day expenses or expand the business.
4. Government schemes
The Government is doing a commendable job of promoting entrepreneurship amongst women. You can apply for finance schemes that the government has launched for businesswomen. Pradhan Mantri Mudra Yojana is a common business loan for women. It offers different loan options for setting up a business and expanding the existing business. The interest on the loans is the lowest in the country and there is basic eligibility criteria. There are additional schemes for women entrepreneurs in the country that offer business loans at low-interest rates.
It is challenging for women to break stereotypes and run a successful business. If you are looking for funds, consider these loan options and make a borrowing decision. It will help overcome any challenge with ease.