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What Options Are There For Small Business Loans For Women?

Women entrepreneurs have revolutionized small business ownership in India. More women are starting businesses with innovative ideas and creative solutions. While women have remained a powerful force in the Indian economy, they are now taking their rightful place as leaders in small businesses. Several financial institutions offer an Online Business loans specifically for women entrepreneurs. These loans can be utilized for several purposes, such as starting a new business, expanding an existing business, or financing capital expenditures.

Eligibility for Small Business for Women

Women-owned businesses or firms with a woman as the major stakeholder or female entrepreneurs who want to start small units like a beauty salon can avail of these loans. They are available for women between 20 and 60 years of age.

  • Loan Amount: Term Loans finance the purchase of a business, tools, and equipment for establishing it, and so forth. In addition, the loan may be used to meet day-to-day operational demands. Loans ranging from Rs. 25,000 to Rs. 1 Crore are available for beauty parlors.
  • Security/Guarantee: TermLoans must provide security or collateral as per the lending institution’s regulations. But on the other hand, women may get up to Rs 1 crore in loans through the CGTMSE program of the government of India without having to offer any security. 
  • Interest Rate: The interest rate is comparable to that of other Term Loans issued by lending institutions. However, women applicants may receive discounts and concessions on their interest rates. The current interest rate ranges from 10.00% to 14.00% across various lending institutions. 

Here are some of the organizations that may grant you a small Online Business Loan:

1. Poonawalla Fincorp Business Loan 

The Poonawalla Fincorp Business Loan is a Corporate Loan you can count on when your company requires funding on reasonable terms. The company offers Business Loans of up to 30 Lakh with flexible repayment options and attractive interest rates.

The loan amount can be used for various purposes, including working capital, business expansion, etc. With this loan, you can get access to finance at competitive terms without needing to pledge any security or collateral.

Some of the key features and benefits of the Poonawalla Fincorp Business Loan are:

  • Loan amount up to Rs. 30 Lakh
  • Cost-effective financing option
  • No need to pledge security or collateral
  • Flexible repayment options
  • Attractive interest rates

2. Bharatiya Mahila Bank – Shringaar

It’s one of the small Business Loans for women specifically designed for those who want to start their beauty businesses. It was created in collaboration with well-known salon brands like Naturals, CavinKare, and Lakme Ltd. This loan is available as either a Term Loan or a Working Capital Loan and may be used to finance the parlor premises and purchase tools and equipment. This money does not need collateral under the CGTMSE government lent facility that allows loans up to Rs. 1 crore (CGTMSE). The interest rate here is currently between 10.15% and 13.65%. Women applicants are eligible for a 0.25 percent discount on the interest rate. The term of repayment is seven years. 

3. Dena Shakti Scheme

Women working in the micro-credit, retail, small businesses, agriculture, and manufacturing industries are eligible for this Online Business Loan. The current interest rate is 6%, and the loan amount is capped at Rs. 20 Lacs for retail trade and education sectors and Rs. 50,000 for micro-credit.

4. Udyogini Scheme

The Small Business Development Corporation (SBDC) is a government-backed financial institution that offers Low-Interest loans to women from the SC/ST category with an annual family income below Rs.45,000. Loans for the capital of up to Rs. 1 million are available to female entrepreneurs aged 18-45 years old. Punjab & Sind Bank and Karnataka State Women’s Development Corporation (KSWDC) offer this scheme.

Further, a 30% subsidy, or Rs. 10,000, whichever is lower, is provided to widowed, impoverished, or disabled SC/ST women who apply for a loan. Women belonging to the general category may qualify for some reductions.

5. Cent Kalyani Scheme

The Central Bank of India developed this scheme to provide Small Business Loans for women engaged in agricultural activities and retail trade. Loans up to Rs. 1 crore are offered. There is no need for collateral or a guarantor for this loan with zero processing fees.

6. MUDRA Yojana Scheme 

The Pradhan Mantri Mudra Yojana (PMMY) has established several programs and products to aid micro-unit/entrepreneur beneficiaries in developing and raising capital. It has three segments, each representing the unit’s stage of development and financial requirements.

  • Shishu: Up to Rs. 50,000
  • Kishor: From Rs. 50,000 to Rs. 5 lakhs
  • Tarun: Rs. 5 to 10 lakhs 

Conclusion

You should conduct thorough research on the sources of loans available. Consult experts to make the best decision for your business. With the variety of Online Business Loans available today, there is every reason to succeed in getting the funding needed to grow your business.

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