small business loan for women

Small Business Loan For Women- What You Need To Know

Indian businesses are growing in various industries, including innovation, healthcare, and aesthetics. All of this requires investment, which many of us cannot afford. A practical option for firms for a long time has been business loans. 

These loans can be used for several things, such as business expansion, improving cash flow, running regular operations, and so forth. Thanks to the range of loan types available in the market, you can get one of these loans for the required quantities (small or big). You should think about if getting a loan is genuinely necessary before deciding to take on debt.

The number of women entrepreneurs has increased in recent years, and we know that the economic development of any country also depends on the empowerment of women. To help women’s company owners reach their goals, the Indian government and national banking institutions have developed several financing programs. 

The success of every firm, whether it be a small business, a cottage industry, or a large business, depends on having a solid working capital. Most people, especially women, know that starting a business requires financing that can be difficult to come by. However, it is pretty simple when you think of opting for a loan to meet your business needs. Don’t worry if you don’t know where to turn for money; Loaney, an online lending platform, can assist you with cash temporarily to meet your financial needs.

Read through this article if you want a business loan for women in India. Also, this article has tried to answer some of the most commonly asked questions about a loan for women to start a business.

What Are Small Business Loans For Women?

Small-scale business loans are a specific kind of loan designed to satisfy the needs of small woman entrepreneurs in the business world. These loans typically include:

1. Low processing fees                      

2. Low-interest rates

3. No collateral requirements

Some Factors To Consider While Applying For Small Business Loans For Women With Loaney

Here are some factors to consider while applying for small business loans for women with Loaney as follows:

1. Eligibility

The eligibility for the loan and the amount you need to borrow are the two most important factors to consider while applying. It is critical to understand whether you qualify for the instant loan for women or not.

2. Interest Amount

You should also take the amount of interest into account while opting for a new business loan for women. Additionally, you should pick a lender online with a cheap interest rate on the principal sum.

3. Collateral Requirement

The demand for collateral is another crucial aspect to take into account. You must keep an eye out for lenders who are giving loans with no need for collateral.

4. EMI Payment

It is also essential to consider whether your lender offers flexible EMI payments. For example, there are several online lenders, like Loaney, that offer flexible EMI payments.

5. Repayment Period

Before applying for a loan, the payback duration is another necessary element to consider. You should watch out for lenders providing a repayment schedule that appears flexible to you and is also acceptable.

Features And Benefits Of Small Business Loan For Women

There are a lot of features and benefits of a small business loan for women:

1. Instant Business Loan For Women

Since Loaney’s website is accessible from any device, you can apply for a loan even if there isn’t a computer. However, it takes less than 10 minutes to complete Loaney’s loan application. Also, with its practical user interface, you may apply quickly and complete the application process in a few simple steps.

2. Collateral-Free Business Loan

There is no requirement for collateral when borrowing money through Loaney. Therefore, you need not be concerned if you lack collateral. All that is required to obtain an instant business loan from Loaney is a high credit score.

3. Ample Time To Repay

You don’t have to be concerned about loan payback when using Loaney. You have a long time to repay the loan you borrowed from Loaney. You typically have between 12 and 36 months to repay the loan.

4. Competitive Interest Rates

Small loans from female entrepreneurs are provided at rates that are competitive with those of their rivals (15–27%). Hence, you no longer have to worry about paying high interest on what you borrow.

5. No Hidden Costs

The last but not least benefit of a business loan for women is that there are no hidden fees. All you need to pay is the processing fee, interest, and principal.

What Are The Eligibility Criteria For Getting A Small Business Loan For Women?

To borrow money from Loaney, you must sign up as a client and provide the following information:

  • You must be a citizen of India.
  • You must be 18 or older.
  • Your selfie.
  • Your PAN, Aadhaar cards, and mobile device must be linked to Aadhaar.

What Are The Documents Required For Applying For Small Business Loans For Women?

The documents that are required for applying for small loans for women:

Application FormMust be filled and duly signed
KYC DocumentsBusiness entity proof, Articles of Association (AOA), partnership deed, incorporation certificate, shops and establishment certificate
FinancialsProjected turnover and performance for the current year.Reports on tax audits, a balance sheet, a profit and loss statement, VAT returns, audited and preliminary financials, etc.
Bank StatementOf the last 6 months
PhotographsA passport-sized image of the applicant and any co-applicants
PAN CardOf partners/directors/proprietors/promotersOf the business entity
Address ProofOf the business entityOf directors/promoters/partners/proprietors

How Loaney Helps In Providing Women With Small Business Loans?

The most trusted online lender for women entrepreneurs’ financing needs is Loaney. At Loaney, you can apply for a loan with low processing costs, interest rates, and flexible repayment schedules. There is minimal paperwork and no requirement for collateral when applying for a new business loan for women. 

Additionally, the Loan from Loaney gives small loans for women to establish businesses with an Aadhar Card and little to no documentation. It does not charge additional fees for small cash loans. Additionally, Loaney offers small loans for women without requiring them to provide security or explain why they need the money. You can apply for an immediate cash loan using the Loaney website to have the funds credited to your account.

Final Thoughts

We hope that we have helped you learn more about women’s personal loans through this article. Also, we have listed the eligibility requirement for a woman’s loan scheme. Moreover, towards the end of this article, we have also answered the questions relating to a small business loan for women with bad credit. Moreover, if you have any questions about the small loan for women, you can contact Loaney.

Frequently Asked Questions

Listed below are some of the most frequently asked questions about new business loans for women:

1. Can a woman get a loan to start a business?

Yes, a woman can get a loan to start a new business from online lenders like Loaney with attractive interest rates.

2. What options are there for small business loans for women?

The options that are available for small business loans for women are as follows:

  • Cent Kalyani from the Central Bank of India
  • MUDRA Loan
  • Shringaar and Annapurna Loan Schemes from Bhartiya Mahila Bank
  • Synd Mahila Shakti from Canara Bank
  • Shakti Scheme from Bank of Baroda (BOB)

3. Is it easy for a woman to get a small business loan?

To support Women entrepreneurs, several reputable banks and financial institutions provide small business loans that are simple to get. These loans are also simple to obtain because no collateral from women is needed.

4. Do you need a minimum credit score to get a small business loan for women?

You need a credit score between 720 and 750 to be eligible for a small business loan for women.

5. What is the minimum amount for A Loaney business loan for women?

The minimum amount for a business loan for women from Loaney starts from Rs. 20,000.

6. What are the fees involved while applying for business loans for women?

The only fees involved while taking a loan are the processing fees. And the processing fee for availing a loan from Loaney is Rs. 3000 while applying for a business loan for women for a duration of two months.