With an increasing number of women entering the workforce and starting their own businesses, there is a growing need for financial assistance that can cater to their unique needs. Business loans for women entrepreneurs can play a significant role in promoting financial inclusivity and driving growth in the country. While the terms and conditions of these loans may be similar to other business loans, they are specifically designed to meet the requirements of women entrepreneurs. In this article, we will discuss how Shriram Finance Business Loans for women can be applied in India.
Why Business Loans are important for women?
In India, female entrepreneurs have a significant impact on the nation's economic development. According to the International Finance Corporation of the World Bank, women account for 3.09% of the nation's industrial production and employ 10% of all people involved in various economic activities. Only 33% of India's early-stage entrepreneurs are women, placing the country third in the world for the entrepreneurship gender gap. Even though women in India succeed in a various field, the country's proportion of female entrepreneurs has not kept up with this development. This is particularly true for women-owned MSME businesses. Less than 20% of India's 63 million small businesses are controlled by women.
How Does a Business Loan for Women Help?
For small business owners who need access to finances, a business loan for women in India provides the required funding. Studies show that nearly 20% of female entrepreneurs who apply for financial assistance from banks or lending institutions are turned down, compared to 8% of men. This creates an extra barrier for women who already find it difficult to get access to resources to pursue business-related goals.
Making Shriram Business Loan more accessible to female entrepreneurs will benefit women entrepreneurs as well as the Indian economy. Banks and non-banking finance companies (NBFCs) are increasingly meeting this demand by developing solutions specifically for women business owners.
Key Highlights
- For female small business owners who need quick funding, a business loan for women in India provides much-needed funding.
- Making business loans more accessible to female entrepreneurs allows both women entrepreneurs as well as the Indian economy to benefit.
- With access to business loans, women entrepreneurs have the potential to create a significant positive impact on both the economic and social fronts.
- There are many advantages to business loans for women including easy applications, quick disbursals, tax benefits, the opportunity to improve credit scores, the ability to improve various aspects of a business and more.
Advantages of Applying for a Business Loan as a Women Entrepreneur
These are some of the advantages of applying for a business loan as a women entrepreneur:
Business Growth
Small business loans for women can help businesses grow in multiple areas. The funds from a business loan can be used for marketing, working capital, purchasing new equipment, upgrading technology, debt consolidation and more. According to the specific needs of the business, a loan for women entrepreneurs can help business owners utilise the funds for the precise requirements of the business, depending on the stage of growth.
Flexible Repayments
Most small business loans for women have flexible repayment terms to make it easy for borrowers to pay back a business loan. The terms of repayment and the amount of the EMI are subject to negotiation between the borrower and the lender. Many lenders even match the business's cash flow cycle with the payback period. Shriram Business Loan has a flexible repayment term from 12 to 60 months, depending on the amount of the business loan.
Creditworthiness
The timely repayment of a business loan for women helps improve the creditworthiness of the business owner and the business. A stronger corporate profile is boosted by this increased credibility. A strong profile increases the borrower's likelihood of receiving a reduced interest rate. To help borrowers make repayments on time, Shriram Finance offers borrowers features such as regular mobile and email reminders so that borrowers do not default on loan repayments.
Beneficial Features
The process of applying for a business loan for women and getting quick approvals and disbursals from the lender is simple. Business loans are offered either with or without collateral. Women borrowers can therefore obtain business loans based on the properties or assets pledged as collateral if the loan amount is high.
Shriram Business Loan has attractive interest rates starting at 15%* p.a. for small business loans for women. The business model, duration of the loan, the business's financial situation, as well as the borrower's qualifications, all influence the interest rate. Borrowers can even apply online for a business loan for women.
Furthermore, free online tools such as the business loan EMI calculator helps borrowers assess their repayment abilities by finding out what the EMIs will be.
Summary
With access to the resources that are needed, women entrepreneurs have the potential to create a significant positive impact on both the economic and social fronts. Providing small business loans for women fosters financial inclusion and empowerment.
The funds from business loans also allow women entrepreneurs to generate employment for others, including other women. Increased access to funds for women business owners also leads to a shift at both the family and the community level and the first step in this shift is providing opportunities for women business owners to start or expand a business.
There are many advantages of a business loan for women. The application, approval and disbursal processes are simple and there are no long waiting periods. There is also an online application option that only requires personal and business-related details to be provided before a quick verification process takes place and the loan is disbursed.
In addition, a loan for women entrepreneurs has multiple advantages, including the opportunity to improve credit scores and reduce tax obligations. To learn more about applying for a business loan for women, Shriram Finance provides a step-by-step guide to the easy online application process with minimal documentation. Apply now for a Shriram Finance business loan for women in India today!
FAQs
1. What are the business loans available for ladies in India?
In India, women entrepreneurs can access various business loans, including loans from banks/NBFCs MUDRA loans, Stand-Up India loans, Annapurna loans, Mahila Udyam Nidhi Scheme and Stree Shakti Package for Women Entrepreneurs. These loans may offer specific benefits such as lower interest rates, collateral-free options and extended repayment periods.
2. What is women entrepreneur business loan in India?
Women entrepreneur business loan in India is a type of financing designed to support female business owners' needs and goals. The loans aim to promote gender equality and women's economic empowerment by providing access to capital.
3. What options are there for small business loans for women in India?
Small business loans for women in India may include traditional bank loans, NBFC loans, microfinance loans, government schemes and grants.
4. Is it easier for a woman to get a business loan in India?
Yes, it is becoming easier for women to get a business loan in India due to various government initiatives and policies to promote women's entrepreneurship and access to finance. Several banks, microfinance institutions and non-banking financial companies (NBFCs) also offer tailored loan products and services to support women entrepreneurs' unique needs and goals.
