Guidelines for Women Seeking Business Loans

In the world of business, women are breaking new grounds every day. They are writing their own stories by successfully running innovative businesses, enterprises, and practices across platforms and inspiring a million others every day.If you are an entrepreneur or an aspiring businesswoman, here is some information on business loans for women that will assist you in your professional journey.

1. If you are opening a new business or expanding it and need funds for operational expenditure and working capital, then you can get a loan of up to ₹1 crore without any processing fee, collateral security, or guarantees.
2. You are eligible for this loan if you are an existing entrepreneur or beginning operations in the micro, small, and medium enterprises.
3. You can also take a loan of ₹10 lakh to ₹25 lakh at a concession of 2% on the interest rate.
4. No collateral security is required in case of small- scale industries and the period of loan repayment is seven years.
5. To be eligible, you should have 51% or more share capital in the company, either individually or jointly.

1. If you are a self- employed professional, then there are loans specifically designed for you. For instance, as a doctor, you can take a loan starting from ₹10 lakh to ₹5 crores.
2. The time period for loan repayment is between 3-7 years.
3. The interest rate for the loan can vary depending upon the duration of the loan.

1. In the rural sector, there are various options for business loans for women in the form of soft loans. For example, to meet the requirements of agriculture or non-farm activities, you can get a cash credit of a maximum of ₹1 lakh, provided you have reached the age of maturity. The loan has to be settled in 1 year.
2. As a woman, you can also get a loan of up to ₹50,000 to set up a food catering business. However, a guarantor and the assets of the business have to be put up as collaterals, and the loan has to be re-paid in monthly instalments for three years.

With time organizations tend to take up multiple loans from many sources. In such situations, you can consolidate the debt to ease the financial management of the business. It essentially means taking up a single personal loan to close existing debts. You are required to pay one total sum every month without extra costs to one creditor, instead of making multiple payments. This helps in increasing the company’s credit score.Various banks provide options for a consolidated business loan , but the eligibility can depend on your company’s credit score.guidelines-for-women-seeking-business-loans

The information contained herein is generic in nature and is meant for educational purposes only. Nothing here is to be construed as an investment or financial or taxation advice nor to be considered as an invitation or solicitation or advertisement for any financial product. Readers are advised to exercise discretion and should seek independent professional advice prior to making any investment decision in relation to any financial product. Aditya Birla Capital Group is not liable for any decision arising out of the use of this information.