Women entrepreneurs have played an important role in shaping the business world and helping the economy thrive. Business loans for women equally play a pivotal role in fostering an inclusive and dynamic economy. These loans for female business owners help to empower women entrepreneurs by providing them with the financial aid they require to start their business or expand it. This support given to women entrepreneurs will lead to job creation, positive community growth, and a broader consumer base.
Loans for female business owners are offered by banks, NBFCs and the government for loan amounts of up to 10 Crore along with competitive interest rates and flexible tenure.
Latest Business Loan Interest Rates for Women
Lenders offer competitive interest rates on business loans for women, helping female entrepreneurs get access to affordable credit. These interest rates can vary from one lender to another depending on various factors such as the lender, the borrower’s creditworthiness, the loan amount and repayment terms.
Given below is a list of lenders offering loans for female business owners along with their interest rates:
| Bank/NBFC | Interest Rate p.a. |
|---|---|
| HDFC Bank | 10.00% - 22.50% p.a. |
| Mcapital | 24.00% p.a. onwards |
| Bajaj Finserv | 9.75% - 30.00% p.a. |
| IDFC Bank | 10.50% p.a. onwards |
| Tata Capital | 12.00% p.a. onwards |
| Axis Bank | 14.95% - 19.20% p.a. |
| Central Bank of India | 7.35% - 7.60% p.a. |
| Flexiloan | 12.00% p.a. onwards |
| LendingKart | 12.00% - 27.00% p.a. |
| Kotak Mahindra Bank | 16.00% - 26.00% p.a. |
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Small Business Loans for Women Entrepreneurs
Small business loans for women are specifically designed to meet the financial requirements of small businesses that may not have access to large amounts of capital. These loans are tailored to address the challenges of limited resources and meeting operational costs.
The government along with various banks and financial institutions offer these loans for small businesses for ladies as term loans, lines of credit, micro-loans, and government-backed loans. Business Women can get a loan amount of up to 10 lakhs for a tenure of up to 5 years.
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Women Business Loans Eligibility Criteria
- Must be 18 - 65 years of age.
- Must be self-employed.
- Business continuity of at least 3 years.
- Applicants with no past defaults shall be preferred.
- Must have a credit score of 685 and higher.
Business Loan EMI Calculator
Running a successful business requires proper financial planning, so, if you are planning to take a business loan, it is important to understand the EMI. Understanding the EMI of a business loan can help you allocate your monthly budget properly so that your operational cost is not hampered.
You can estimate the EMI amount by using an online EMI calculator. All you need to do is input the correct loan amount, interest rate and tenure of the loan, and the potential EMI will be provided to you in seconds.
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Documents Required for Business Loans
Lenders ask for specific documents for business loans for women in order to determine their eligibility for the loan, loan amount and interest rate. These documents are:
- Filled and duly signed application form.
- Business Document Proofs such as incorporation certificate, shop or establishment certificate, Articles of association, etc.
- Financial turnover with current business performance, tax audit report, balance sheet, profit and loss statement, tax returns, etc.
- Last 6 months bank statement.
- Business address proof, business owner address proof and proprietor, partnership address proof if required.
Government Business Loans Schemes for Women
There are several government loans for women as well as schemes offered by banks. This gesture indicates a commitment for promoting financial inclusivity and empowering women entrepreneurs through targeted funding initiatives. These schemes and loans are:
PMMY MUDRA Loan
PM Mudra Scheme was launched with the intention of providing accessible financing to micro-enterprises and small businesses. It offers funding to non-corporate, non-farm enterprises, especially benefiting small entrepreneurs belonging to the underprivileged section of society. The scheme is categorised into three segments:
- Shishu: Providing loans to startups for a maximum amount of up to ₹50,000 for a period of 5 years.
- Kishore: Providing loans to medium established enterprises at loan amounts ranging from ₹50,001 - ₹5,00,000 for a period of 5 years.
- Tarun: Providing loans to establishments that are seeking to expand at loan amounts ranging from ₹5,00,001 - ₹10,00,000 for a period of 5 years.
The interest rates for the loan range from 9.45% - 12.00% p.a. depending on various factors such as the lender, credibility of the borrower and loan amount.
Stand Up India
Stand Up India is a government initiative in India launched specially to promote entrepreneurship among women, particularly those belonging to SC/ST. The scheme provides financial assistance to set up greenfield enterprises thereby fostering economic empowerment.
This business loan for women to start their business offers loan amounts ranging from ₹10 lakhs to ₹1 Crore at affordable interest rates with zero collateral required. The scheme seeks to promote entrepreneurship support in sectors such as manufacturing, trading and services.
Mahila Samridhi Yojana
Mahila Samridhi Yojana is a govt loan for women who are starting Micro, Small and Medium Enterprises (MSMEs) . It was initiated with the objective to empower women and help them become self-reliant.
Women can receive loan amounts ranging from ₹10 lahks to ₹1 Crore under this scheme at an interest rate that varies between 10.5% - 12% p.a. These funds can be used to start any kind of business in the agricultural, manufacturing, services and trading sector.
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Documents Required for Business Loans
Lenders ask for specific documents for business loans for women in order to determine their eligibility for the loan, loan amount and interest rate. These documents are:
- Filled and duly signed application form.
- Business Document Proofs such as incorporation certificate, shop or establishment certificate, Articles of association, etc.
- Financial turnover with current business performance, tax audit report, balance sheet, profit and loss statement, tax returns, etc.
- Last 6 months bank statement.
- Business address proof, business owner address proof and proprietor, partnership address proof if required.
Mahila Udyam Nidhi Scheme
This scheme is a government initiative to empower women entrepreneurs who are seeking to start their own small scale businesses or expand them. The scheme offers financial assistance to those starting a business in the manufacturing, service or retail sectors.
Under this scheme, women entrepreneurs can get loan amounts of up to 10 lakhs for a repayment term of up to 10 years at low-interest rates. This loan helps promote women’s participation in economic development.
Udyogini Scheme
The Udyogini Yojana scheme was launched by the Women Development Corporation to provide subsidized loans to female entrepreneurs, particularly from rural and underdeveloped areas.
Under this scheme, businesswomen are offered a loan amount of up to 3 lakhs which is subsidised at 30% by the government. The scheme also provides interest-free loans to eligible entrepreneurs starting a business in the agricultural sector. This business financing for women is available for 88 small-scale industries, including fisheries, bakeries, tailoring shops, groceries, and more.
PSB Loanin 59 Minutes Scheme
PSB Loan in 59 Minutes is a platform launched by the government to simplify the process of accessing financial assistance to self-employed individuals and Micro, Small, and Medium enterprises (MSMEs).
This scheme makes financial assistance easily accessible to women entrepreneurs who are seeking flexible financing options. You can get loan amounts ranging from 1 Lakh to 5 Crores at affordable interest rates through this platform. Although the loan amount and interest rate will vary depending on the lender, your credibility, and more.
Cent Kalyani
Cent Kalyani is a Central Bank of India initiative that aims to support and encourage women to establish and expand their Micro, Medium and Small businesses in manufacturing and service sectors.
Eligible entrepreneurs can avail a business loan amount of up to 1 Crore at competitive interest rates. However, there is a minimum margin requirement of 20% of the project cost. Meaning that the loan will finance only 80% of the project cost, while the 20% should be contributed by the entrepreneur.
Canara Mahila Vikas
The Canara Mahila Vikas is a scheme launched by the Canara bank to provide support and empowerment to women with existing or proposed businesses in manufacturing, trading, services or other MSME sectors.
Female entrepreneurs can access loan amounts ranging from 10 lakhs to 5 Crore under this scheme at low-interest rates on both overdraft or term loans.
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Benefits of Taking a Business Loans as Female Business Owners
Taking a business loan can be a strategic move for female business owners for several reasons. These are:
- Financial empowerment: Business loans for women empower female entrepreneurs by providing them with the necessary capital to start, expand, and enhance their business which promotes financial stability.
- Business growth: Access to funds can help a business expand and diversify or introduce new products and services which can contribute to overall business success.
- Job creation: Proper funds for business expansion will lead to a requirement of additional manpower, contributing to job creation within the surrounding areas and community. Thus supporting economic development.
- Competitive edge: Funding from a business loan can give women-owned businesses a competitive advantage over their competitors. As it allows them to invest in the latest technology, marketing, and other crucial aspects to remain competitive in the market.
- Wealth creation: A loan for female entrepreneurs can lead to successful business growth or expansion. This can positively impact the life of the entrepreneur, which can also lead to economic growth and development.
- Community impact: Business loans for women enable entrepreneurs to address societal needs and make a positive impact on the community and social welfare.
- Financial inclusion: Women entrepreneurs access to business loans promotes financial inclusion, ensuring that women have equal opportunity to grow and contribute to the economy through their businesses.
Steps to Apply for Business Loans as a Women Entrepreneur
Applying for a business loan as a female entrepreneur is a straightforward process, here are the steps to follow:
- Step 1: Choose the lender and loan scheme of your choice.
- Step 2: Visit the lender’s website and apply for a business loan.
- Step 3: Enter all the necessary information including loan amount and tenure.
- Step 4: Submit the application form along with all the necessary documents.
- Step 5: The application will be reviewed by the lender.
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Frequently Asked Questions
Like any borrower, female entrepreneurs can demonstrate their business viability, maintain good credit, prepare a solid business plan, and fulfil lender specific criteria to qualify for a startup business loan.
Women owned businesses can access various loans including microloans and special schemes like Stand-up India, offering tailored financial support.
The application process for startup businesses include research lenders, visit their website, submit the application form, the required documents, state the loan amount and tenure of your choice and submit.
Yes, there are many government programs for women-owned businesses such as Stand Up India, MUDRA loan under PMMY, PSB scheme in 59 Minutes and more.
The benefits of startup business loans for women are financial empowerment, business growth, job creation, fostering entrepreneurship and financial independence for women.
Small business loans, like MSME loans for women, focus on smaller enterprises that have limited access to capital. They offer financial assistance, flexibility and faster approval compared to traditional loans that suit larger enterprises with established credit.
Specialised loans offer terms that are tailored to the unique needs of a business. They offer support, growth and fosters diversity which provides a unique opportunity for success.
Women who solely owns the company or those with a majority ownership of at least 51% qualify for these loans.
The eligibility criteria includes a good business plan, good credit history and proper financial proof. The requirements will differ depending on lenders.
Yes, some schemes and lenders offer preferential interest rates for women entrepreneurs.
Yes, there are many government and nonprofit programs that support women entrepreneurs with financial assistance.
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