India has been undergoing a significant positive cultural shift over the last few years. Statistics suggest that there has been a substantial increase in the number of women entrepreneurs, with 15% of unicorns having at least one female founder. From Radhika Ghai Aggarwal of Shopclues to Vineeta Singh of Sugar Cosmetics, female entrepreneurs are rising and rising in India. Many lending institutions like Clix Capital are paving the way for future generations of women entrepreneurs by providing Business Loans for women, helping them achieve their goals.
Many people will attest to the fact that women have unmatchable management skills and the calibre to scale terrific entrepreneurial heights. Collateral-free Business Loans can offer great benefits to female entrepreneurs, and of course; helping them address their monetary needs quickly. As a result, a lack of funds does not become a challenge on their way to success. These loans help women grow as entrepreneurs and encourage their financial independence.
The loan process is quick, reliable, and designed based on the enterprise’s financial health and data. Let’s explore how unsecured Business Loans help women entrepreneurs in India achieve their success goals.
The Need for SME Loans for Women in India
Many Indian women entrepreneurs aim to take their small businesses to new heights but drop the idea owing to insufficient funds. That is not the case anymore with moneylender. Curated Business Loans for women encourage more female entrepreneurs in India to expand their businesses and diversify their markets. Collateral-free Business Loans enable women entrepreneurs to achieve their business goals and inspire others like them to follow the same path.
In general, no female entrepreneur should quit her dream of business success due to a lack of funds, and an unsecured Business Loan ensures just that. Several NBFCs provide specialised Business Loans to ensure entrepreneurs have a large pool to choose from and obtain the best one.
Benefits of Business Loans for Women
Here are a few benefits women entrepreneurs can enjoy by taking a Business Loan in India.
● Collateral-Free Access to the Required Funds:
Many women mortgage or sell their assets to invest in their businesses. Some also liquidate their residential or commercial properties to get the necessary funds.SME loans for women do not demand any collateral, security, or guarantor. Women entrepreneurs can avail these veritable financial options to expand their enterprise without the fear of losing a hard-earned asset.
● Fair Loan Approval Process:
Most lending institutions’ application, approval, and disbursal procedures are completely honest and transparent. Any female entrepreneur who fulfils the eligibility criteria can qualify for a loan and obtain the eligible sanction. Based on the applicant’s entrepreneurial skills, if they have been running a business successfully for at least three years with a minimum turnover of one crore, they may apply for a loan and get easy access to funds without partiality.
● No Cash-Flow Risk or Profit Sharing:
Unsecured Business Loans allow female entrepreneurs to reduce cash-flow risk as they build their customer base. Compared to equity investors who claim a percentage of the business profit in return for their capital, SME loan providers have no such stake in the company. No matter how well the business performs, the borrower must only repay the loan’s EMIs on time.
● No Interference with the Business Operations:
An SME loan helps the business owner retain control of her enterprise while protecting her valuable assets. Besides, lending institutions do not have any say in how borrowers use the loan amount or operate their businesses. So, female entrepreneurs stay in control of their businesses and profits.
● Facilitate a Higher Loan Sanction:
Lending institutions report each transaction to credit bureaus. Therefore, with a consistent repayment history, women entrepreneurs can create goodwill and credibility for their businesses among financial institutions and investors. It opens vast opportunities for higher sanctions in the future.
Different Reasons to Borrow Business Loans for Women
Many lending institutions offer unsecured Business Loans to support women business owners who have no assets to pledge or those who simply do not want to put their property on the line. Business Loans allow female entrepreneurs to realise their dreams and nourish their business ideas without financial worries. Women entrepreneurs can use Business Loans for a variety of reasons that can support their business growth.
- Expand their scale of operations
- Diversify their business offering
- Unravel new opportunities for growth
- Upgrade the current business setup and format
- Address additional staffing needs
- Upgrade software, equipment, and machinery
- Build working capital reserves to fulfil output requirements
- Invest in marketing and reach a new customer base
Business Loan Eligibility for Women
A Business Loan for women can be as little as ₹ 5 Lakh and go up to ₹ 50 Lakh. These are unsecured loans that require no security or collateral. Lending institutions approve loans based on data analytics rather than industrial biases. Any private limited company, proprietorship, closely-held non-listed company, or partnership firm can apply for a loan if it has been running successfully for the last few years.
Lending institutions and NBFCs check the firm’s annual turnover, number of years in operation, and financial performance to verify credibility. Once the loan disbursal happens, the entrepreneur has ample time to repay the loan.
New-age NBFCs and lending institutions support% online loan application procedures, making Business Loans much faster to access. The approvals are unbiased and based solely on an applicant’s eligibility and documents.
Simple Application Process
Go to the lending institution’s website and choose Business Loans. Register with your mobile number and fill out an online application form. Wait for their representative’s call for in-person verification of documents. Once verified, the applicant gets the loan offer. After accepting, the loan amount gets disbursed directly into the applicant’s account.
Conclusion
With an incredible financial support system for women entrepreneurs in India, business owners leave no stone unturned to break the stereotypes and conditions to play. However, establishing and maintaining a business takes work, but Business Loans for women will do their part, always.
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