As a woman, are you planning for a start-up business? Are you looking for a perfect business loan? If so, then once in a while you would have come across an MSME loan that’s for micro, small and medium enterprises. This particular loan scheme helps to fulfil the funding requirements and in establishing & growing the business. Also, it has a great contribution to the country by building a satisfactory economy.
Interestingly, gender equality is applied in several fields and it’s not news that you’d get to enjoy loans too. Also, the MSME chose to give more power to women through several loan schemes that any woman entrepreneur could enjoy. Moreover, several women entrepreneurs from rural areas have proven their potential despite having limited help and resources. Let’s know more about such loans further in this article.
The powerful loan schemes for women entrepreneurs
Are you one of them who’s ditching their jobs and giving their entrepreneur skills a chance? There are several significant reasons for a woman to run a business so, the demand for a business loan for women is rising. You could have several types of business loans from financial institutions to government schemes. Let’s discuss the top five options that’d be best for women.
Finance for small businesses
You’d be surprised to know that several financial institutions are offering different varieties of loans or SME loans. But, maximum loans are applicable for existing businesses. A few of them offer loans for start-ups but that too for the short-term. LOC or Line Of Credit is a popular option for female entrepreneurs especially for small and medium businesses which lets the applicants have a maximum LOC amount determined by the lender. So, with such an option you could borrow money but to that maximum credited amount. This particular type enables you to have several types of loan options with both secured and unsecured funding categories. Also, you’d enjoy an affordable interest rate.
If you’re the woman who’s wanting to have a business that’s fully home-based then, this type would be perfect for you. This particular loan type isn’t a secured type of loan that doesn’t need any security for the loan amount. But, they’ll do an eligibility test whether or not you’re capable to have the loan that includes your monthly income and credit score. Like, for a homemaker, the loan amount provided would be lower than any working woman. So, you can either use a personal loan for start-ups or even for expanding your business. Also, you’d get online applying options for the loan.
You would have already understood the hidden theory for this particular scheme through the name. Indeed, it’s for the hidden cooking talent even if you’re not professional in this field but this scheme would help you to showcase your hidden talent by making you an entrepreneur. You can purchase a kitchen with the help of the loan and several other pieces of equipment including utensils and more. But, for this scheme, you have to pay the loan within 3 years. For each market, the interest rate tends to vary.
Stree Shakti Package from SBI
Amazingly, the State Bank Of India offering such a great loan especially for women entrepreneurs with no security required. Also, you need to enrol in the EDP to avail of this particular loan. Moreover, you need to have over 50% or more ownership for the small business.
Bharatiya Mahila Bank loan
This particular loan option is taken by an easy loan scheme, especially for women entrepreneurs. Though the bank has a special SME scheme for small and medium businesses there are two different schemes. If the loan is under Rs. 1 crore then it will be covered by the CGTMSE scheme and under SME for loans up to Rs. 20 crores. Also, the loan can be repaid within seven years. Indeed, this particular loan scheme gives special attention to underprivileged women with financial assistance.
I hope this article would be informative and helpful at the same time for women entrepreneurs. Indeed, business loans are beneficial especially for women as one could have a loan of high value in a hassle-free manner, have to do minimal paperwork, flexible facilities and more. At first, it would be challenging for you to break various stereotypes and grow your business successfully. But, you have to be patient and overcome various challenges to get succeeded in this field.