With more entrepreneurs today than ever before and business opportunities constantly around the corner, women have naturally entered the market. However, a history of side-lining has left their efforts unrecognised with lenders being wary of budding female entrepreneurs to avoid any lack of repayment.
Stereotypes and biases further increase this mistrust of women. To counteract this, many lenders now offer business loans for women, avoiding these scenarios and enabling women to acquire the necessary funds to get a head start on their new ventures.
That said, these business loans often have lengthy procedures for approval and require some collateral. For women just starting out, this is not always possible, as they often lack the necessary collateral to prove financial stability and repayment capacity.
To aid the issue mentioned earlier, there are unsecured loans that female entrepreneurs can borrow that come with very few business loan requirements. These loans have nominal interest rates, flexible repayment tenures, and quick approval periods.
Eligibility Criteria for Loans for Female Entrepreneurs
Knowing whether you meet the eligibility criteria for a loan is essential before making the decision. Specifically for a loan as specific as an unsecured business loan for female entrepreneurs, relying on a loan before knowing whether you are eligible can be quite a risk to take.
Female entrepreneurs can avail of loans with relatively simple terms and conditions following these eligibility criteria:
- Must own a business having a minimum vintage of 3 years
- The borrower must be in the age range of 25 to 65
- Must be an Indian citizen
- The borrower’s credit card score must be higher than 685
The lender factors in the parameters mentioned above before accepting or rejecting your loan application. Customers can increase the likelihood of getting their request at the earliest by using an online loan calculator.
Benefits of Taking Business Loans as a Woman
Being as specialised as it is, a loan for female entrepreneurs is a beneficial funding option. Alongside its obvious promotion of women as business owners, it has many other advantages that make it essential for women today. These benefits are as follows:
- It is an unsecured loan
- It does not require any collateral
- Minimal paperwork and documentation are required
- It gives you the option of availing a high-value loan
- Borrowers can be up to date with their loan account through online portals
- Payment options are flexible
- You can withdraw money at any time from the sanctioned amount
These benefits perfectly portray how convenient it can be for women to take a business loan, allowing them to thrive in their industry.
Documents Required for a Business Loan
The process of filing for a business loan is simple and hassle-free. However, ensuring that all the documents are in place is essential to get a speedy response from the lender. You must provide the following documents:
- Address proof (utility bills, voter ID, passport, Aadhar card, voter ID card, etc.)
- Business incorporation certificate
- Identity proof (voter ID, passport, driving license, PAN card, Aadhaar card, etc.)
- Income proof (bank statement from the last 6 months, salary slips, etc.)
- Self-written business plan
- Two passport-size photos
- Other supporting documents
Providing your lender with these documents can help you get a hold of the sanctioned amount much sooner.
It is essential to support budding entrepreneurs, especially women, to break gender stereotypes. Business loans play a huge role in this as many women are discouraged by a lack of funds while continuing or starting their business.
Business loans for female entrepreneurs can help you get a jump start in your business avenue. Start the process now and get competitive interest rates, flexible repayment options and boost your business instantly!