Women in India have proven time and time again that they are capable of anything they set their minds to, from running their own business to running the entire country.
Kalpana Saroj, the CEO of Kamani Tubes, is considered the first female entrepreneur in India and her story is nothing short of inspiring.
This is one of the many examples showing that being an entrepreneur in India is not an easy road; there are many hurdles that need to be overcome to build a successful business.
If the nature of the business is cash intensive, this can present greater challenges for the individual. In most cases, women entrepreneurs in India need financial support to grow their business.
A sustainable line of credit or funds can always help your business reach new heights.
There are many different types of women loans for business available in the market today. In this article, we tell you how you, as an entrepreneur, can use loans to grow your business or even start one.
In case you need help figuring out which business to start, here are some business ideas for women to consider.
Importance of credit for women entrepreneurs in India
Before we tell you the importance of credit and how it can help your business, let’s look at some interesting statistics about women entrepreneurs in India.
Sounds impressive right? However, we still have a long way to go. Businesses run by women often struggle with a lack of financial support, and this is where credit comes in.
Financial planning is important for all businesses, especially women-owned businesses, as raising finance can be more difficult for them. Women entrepreneurs turn down business opportunities for lack of money, but they don’t have to.
The simple solution to this problem is to take out a loan. Let’s look at the types of loans women entrepreneurs can consider…
Types of loans for women for business
Without further ado, let’s discuss the different types of loans available to women for business purposes.
1. Small Business Finance
In general, there are many options from banks, credit unions, and online lenders. Women’s small business loans are available in a variety of ways, but the pros and cons of each should be carefully considered before the entrepreneur makes a final decision. Aside from the standard loans available, there are options specific to the type of business such as: B. Grants from nonprofit organizations, government agencies, and private companies.
2. Instant online business loan
Instant loans, although a relatively new concept in our country, have gained immense popularity, and with good reason.
Online instant loans have many advantages over traditional lending, with fast approvals, disbursements and convenience, and they also offer the freedom to use funds as borrowers see fit for their business.
In fact, most online lenders have personal loans for women specifically to help them with their businesses.
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3. Loans against securities and government bonds
Secured loans and government bonds aren’t the newest addition to the loan portfolio for entrepreneurs, but they’ve always been there to help entrepreneurs in times of need.
Granted, these types of loans are a little less convenient to avail and require more documentation etc. but business owners around the world trust them to help them ease their financial needs.
Government bonds are another option that people trust as these bonds are issued by the government with fixed interest rates.
4. Gold Loans
Gold loan is an option women entrepreneurs can consider as most women in India have some gold to spare. The lender keeps your gold as collateral and provides you with cash in return.
The main advantage of these loans is that they charge lower interest rates compared to unsecured loans.
5. Government Loan Programs for Women Entrepreneurs
In order to encourage the boom of startups and small businesses in India, the government has introduced several programs and policies to make life easier for small business owners and entrepreneurs. The government, along with other banks and companies, has also launched a number of programs specifically for women entrepreneurs.
The systems come in different forms in different types of packages. If all the requirements are met and the verification processes are successful, an entrepreneur can use these programs to get loans even up to 20 lakhs. Because they are backed by the government and big companies, the banks or lenders offer attractive interest rates and convenient repayment terms. These loans are specifically designed to encourage women entrepreneurs and help them to skyrocket their businesses and eventually contribute to the Indian economy on a large scale.
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That brings us to the end of this article and we hope that you have now found a way to raise money for your business using the options listed above.
Running a business is difficult, but you can alleviate your financial woes by taking out an easy loan and living stress-free with fast personal loans CreditBee.
