Over the past couple of decades, there has been a growing awareness of the gender inequality in business, and steps have been taken to change it. As a result, the number of women-owned businesses has doubled over this period.
However, this immense growth did not happen easily. Women had to, and continue to, face a lot of challenges to make a name for themselves in this male dominated world. And one of the major struggles they face is finance.
Women rarely (if ever) approach financial institutions for their business’s financial requirements. More often than not, they opt to use their savings, or borrow from friends and relatives rather than financial organizations – be it banks or non-banking financial companies (NBFC). This can limit the growth potential of their company as they will have access to limited funds.
However, banks and NBFCs like Bajaj Finserv have come up with many schemes to counter this, including business loans specifically for women owned businesses. For example, the Bajaj Finserv Business Loan For Women offers a high loan amount of Rs. 30 lakh, and comes with a line-of-credit facility that allows the applicant to borrow the amount they require from within the credit limit.
They need to pay only the interest as EMI, and only for the amount that has been borrowed. Moreover, this loan has a flexible repayment tenor of 12 to 96 months (for ease of repayment), and a quick processing and disbursal period of just 48 hours. What’s more, it requires minimum documentation.
Benefits Of Small Business Loan For Women
The special business loan schemes set up for women come with various benefits, including:
1. Schemes For All Types Of Businesses
The business loan schemes that banks and NBFCs have launched/ offer can help women start and/ or expand any type of business. From business loan schemes for women business owners in the catering industry, to loans for women in the village and cottage industries, business loans are available for every female business owner/ entrepreneur.
2. Unsecured Loans
Many of the business loans for women are unsecured. They do not require the business owner to keep anything aside as collateral. This often leads to the business loan interest rates being high, and it usually varies based on sector and market rates. However, if the borrower has a good credit history, they may be able to negotiate their interest rates, at least when they borrow from NBFCs.
3. Online Access
The Internet has made life easier in many ways, including applying for business loans. Many of the loans available for women can be applied for online. The borrower also has the freedom to make the entire transaction, from application to payment of EMIs, online. For example while availing the Bajaj Finserv Business Loan For Women, a borrower would have access to complete online fund management, so that they can access the funds from anywhere, at any time.
There are many different business loans for women available in India, for medium, small and even micro enterprise owners. However, it is important to ensure that the scheme a borrower is looking at will suit their business, before applying for it. The various schemes offer different loan amounts, to be used for varying purposes. Therefore, having an idea of how much a borrower needs, and why they need it, before applying would be a good idea.