Women today are perfectly capable of handling their affairs and don’t necessarily need the men of the household, to take care of their expenses or to run a business or pay the bills. Women do everything on their own. They can handle any kind of job and are strong-minded when it comes to contributing to society. Banks have understood these capabilities and are offering Small Business Loans to women who run a successful business, but need a little financial help.
Many financial institutions like banks and NBFCs have come up with schemes, that are exclusively framed for women entrepreneurs. These schemes have relaxed terms and conditions, lesser rate of interest and lower collateral/security. Some financial institutions have also set up a cell within their branches to counsel and train women entrepreneurs to promote and market their businesses.
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The various loan schemes offered to women entrepreneurs for their small businesses are as follows:
This scheme is offered by the Central Bank of India. Women can avail loans to start new ventures. The loan is offered to new as well as experienced business owners, self-employed and professionals. Women, who are engaged in agricultural and allied activities and in village and cottage industries, can avail loans under this scheme.
This scheme is offered to women who have 50% ownership in a small business. The women entrepreneur needs to pursue the Entrepreneurship Development Programmes (EDP) organized by the state agency. All necessary assistance will be provided and you (woman entrepreneur) will get an interest concession of 0.05% under the scheme. Interest concessions can be availed on loans above Rs 2 Lakhs.
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This scheme is offered by the Dena bank to promote female owned businesses, by providing financial assistance to them. The loan can be availed at an interest concession of 0.25%. The loan is offered to women engaged in manufacturing, agricultural and allied activities. Even women running small enterprises, micro-credit or retail stores can avail loans under this scheme.
This scheme is offered by the Punjab and Sind Bank to motivate women entrepreneurs to obtain loans at low interest rates and establish small scale industries. This loan is also available for retail traders and self-employed women entrepreneurs.
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This scheme is offered by Small Industries Development Bank of India (SIDBI) to provide financial assistance up to Rs 10 Lakhs to female entrepreneurs to set up new ventures in the small scale sector. Be Wise, Get Rich.
A business loan is meant to offer capital to businesses for growth and operations. Business loans are an ideal way to manage business expenses like new equipment acquisition, working capital needs, buying business vehicles, fund business expansion or simply start a new business venture. Business loans can be easily availed from banks where the borrower must repay the principal amount along with interest.
Business loans are the loans offered to woman entrepreneurs for starting or funding business ventures. Business loans for woman have certain features like nominal interest rates, easy documentation, quick disbursal of loans and longer tenure. Woman beneficiaries can avail business loans at special concessional rates and relaxed terms and conditions. These loans are meant to encourage aspiring woman entrepreneurs, enjoy sustainable development and for the creation of jobs in rural and urban areas.
These business loans are tailor-made to suit the business needs of woman entrepreneurs and so the foremost criteria to avail these loans are the business must be headed by a woman. In case of partnership business, a business loan for a woman can only be availed if a woman holds the majority stake (51% or above). The eligibility criteria to avail business loans for women are as follows:
Listed below are the documents that must be submitted by the applicant to avail business loans:
Small business loans are mainly availed by woman entrepreneurs to meet small business needs like funding for equipment, meeting working capital needs or for the expansion of their businesses. There are various banks, financial institutions and online loan aggregators which offer woman entrepreneurs, loans for their businesses at competitive interest rates.
Some vendors offer special terms for SMEs and start-up ventures run by a woman like flexible loan facility, online loan management, flexible repayment tenure, no collateral requirement and micro-credit facility for small business ventures. The rate of interest offered by most of the banks is a concession on base rate on a business loan. Banks generally do not charge processing fees and pre-payment charges from woman beneficiaries.
You can calculate the monthly EMIs of business loans for a woman through an online EMI calculator. The online EMI calculator helps understand the monthly installments and the time required to repay your loans. You can make better business decisions, if you already know the monthly expenses incurred with the business loan.
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