With the number of women entrepreneurs increasing and taking over the market, the need for women business loans has also increased. To support women who are constantly breaking the stereotypes, women business loans can help give them the big financial push they need. Thousands of women in India from all backgrounds work hard and for long hours to make their dreams come true. This is where women business loans play a vital role. These women turn out to be an inspiration for many young women in India who later acquire education and aspire to establish their own business. Moreover, a business driven by women plays an important role in shaping the economy and society in general.
With the help of women business loans, one can resolve their monetary problems and set up their business and move towards the path of growth and success.
You can get women business loans from banks and reliable Non-Banking Financial Companies (NBFCs) like Kinara Capital that offer entrepreneurs collateral-free business loans with minimum paperwork and maximum flexibility. They also have a special loan called HerVikas, which provides an upfront discount to women entrepreneurs on business loans without property collateral.
What are the barriers women entrepreneurs face when applying for a business loan?
- Gender discrimination: Male entrepreneurs are preferred over female business owners when it comes to granting business loans due to society’s gender stereotypes.
- Lack of education and skills: Even today, in many places in India, women are not allowed to get an This restriction often comes in between them and their dreams.
- Balancing responsibilities: Women often struggle to balance their work and family responsibilities, and many lenders are wary of them not being good borrowers.
- Lack of network: Due to inconsistency in educational background and lack of proper training, women often don’t have a reliable network to trust with their business. Thus, banks might question the credibility of their enterprise.
Types of Small Business Loans for Women
Everyone has different requirements based on the needs of their business. For instance, here are some common types of business loans offered by Indian NBFCs in India:
Working Capital Loans
- A working capital loan allows you to carry out your company’s daily activities smoothly without facing any financial problem or shortage.
- With the help of women business loans in this category, women entrepreneurs can :
- Purchase raw materials, stock, or inventory
- Make due or advance payments to vendors and suppliers
- Renovate the business station, workshop for a more efficient functioning
- Hire more talented, permanent, seasonal, or part-time employees
- Expand their product or market expansion of business
Business Loans for Asset Purchase
- Women entrepreneurs can opt for this loan if they want to purchase new or second-hand assets/machinery for the development of their
- They can easily apply for these loans online using a smart device or a computer.
The loan repayment tenure of Business Loans for Asset Purchase varies between 12- 60 months
Women Empowerment Loans
These loans are offered to women who aspire to grow their business but are unable to fund it properly. Thus, these loans are offered for the sole purpose of empowering the working women of India.
There are not many NBFCs in India registered under RBI that offer such loans for women. You can opt for Kinara Capital’s HerVikas loans that do not require any lengthy paperwork or documentation for applicants and offer a 1% discount for women on the MSME loans to make the future full of powerful women entrepreneurs!