If you are a woman owning a business or planning to start a new venture, alone or with a group of women, you would happy to know that you can get business loans for women for your fund requirements. These are designed specially to cater to women business owners with discounts on interest rates and eligibility criteria. You can apply for business loans both from banks, finance companies and also under certain government schemes to encourage women to earn on their own. However, there are several important things that you should know when you apply for loans. Read on to learn about them in detail.
Be it small businesses like food catering services, beauty salons or a start-up, etc, these loans can provide support when you require funds urgently and with easy terms and conditions. Some of the benefits that you can enjoy are:
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Grow your business
If you want to expand your business, you need more resources like employees, a bigger space, etc. and all these increase your fixed costs. With a loan you can initially carry on these activities and repay back from the revenue earned within a specified time.
Discounted interest rate
Apply for business loan to get discounts on the interest rates offered by several lenders for women business owners. This a big advantage as you can save while repaying of the loan amount. Also, you may get concessions on fees and processing charges.
Variety of loans
Choose from several options, depending on your requirements. There are different types of loans like Secured and Unsecured loan, Working Capital Loan, etc.
Easy eligibility criteria
For women, many lenders offer relatively easy eligibility criteria like no minimum limits, maximum amount up to crores, applicant age starting from 18 years, short term funds, easy repayment option, etc. Business loans for women offered by certain lenders are flexible in nature and you can use it for both personal and professional purposes if required.
Co-applicant for loans
You may consider personal loans initially but it can be difficult for you if you do not have previous experience or you are homemakers. In case of business loans, you can add your spouse as co-applicant and this would increase the loan amount.
Online transaction facility
The online process is convenient as you do not need to visit the lender physically. Compare between different lenders, select a suitable loan and apply online. The process is fast and you may get the loan within a week.
No penalty on early repayment
You may have the option of early repayment with zero penalty available with certain lenders. Now, you may have to pay the first EMI (Equated Monthly Instalment), after which you can entire balance amount any time within the loan tenure. You do not have to pay any fee, penalty or charge.
Look for several central government schemes launched for women, especially a common business loan available for women business owners. It covers start-ups, existing businesses, as well as business expansion. You will also get discounts on the interest rates and a loan tenure of up to 5 years to repay back.
LOC (Line of credit)
This is a popular loan for small and medium women entrepreneurs. The lender would lend you funds after checking your maximum repayment ability. You can get loan up to this maximum amount. During repayment, pay interest only on the amount that you have used so far and not on the entire sanctioned amount. You can get this loan for a new or an existing business.
Loan without collateral
One advantage of this type of business loan is that you can apply for it even if you do not have any asset. It is an unsecured loan, where the lender would not ask for any collateral or mortgage. If you apply online, you may get it within a day or two. These loans have a higher interest rate as the lenders face greater risk of non-repayment.
Select a suitable fund solution from the different types of business loans for women available nowadays. Starting from taking care of your day-to-day operations, dealing with losses or expanding your business, these loans will support you during emergency fund requirements. You do not have to think about borrowing from friends and family and plan your expenses without any stress.