Women now-a-days are capable enough of running their own business. The number of businesses owned by women has nearly doubled in India during the last two decades. Growing focus on ‘women power’ and economic development have obligated women to become entrepreneurs.
All business owners need financing from time to time for growth and expansion of their venture. Women entrepreneurs also need to overcome their own set of challenges in order to arrange for finances for their business. Research suggests businesswomen often face more difficulty in getting small business loan for womens. But the good news is that government initiatives and policies have stepped up along with Non-Banking financial corporations (NBFCs) like Bajaj Finserv to help women in securing easy business loans.
Government and NBFCs have launched special schemes for women with affordable interest rates to promote women entrepreneurship in the country. These special schemes offer flexibility in terms of collateral security as well as payout rates.
They also have other alternating funding options at their disposal to help them initiate and expand their business. Some of the finance options for women include:
Non-Banking Financial Corporations (NBFCs)
NBFCs like Bajaj Finserv are offering short term and long-term business loan for women at affordable interest rates. These loans also come with a benefit of flexible payout options. Generally, these loans are collateral-free. NBFCs are floating many special schemes for women entrepreneurs. Generally, interest rates are lower or loan tenor is higher for these exclusive business loans.
Applying for a business loan with NBFCs can be very easy with facilities like online application. Approval of loan is also very fast and also the required documents for business loan is very low.
Special Government Schemes
The government has come up with a wide array of schemes exclusively for women to promote women entrepreneurship. These offer a variety of options with low interest rates for women. Few of them are:
- Annapurna scheme
- Shree Shakti Package
- Bhartiya Mahila Bank
- Cent Kalyani scheme
- Mudra Yojna scheme
- Mahila Vikas Yojna
Banks provide term loans at regular interest rates for a specific amount of time. Banks have stricter lending norms and the time taken for procuring loans can be high as compared to NBFCs. Also, most banks ask for a collateral before processing loans that might be tall order for small businesses. They also take a close look at the credit score to determine the loan amount and the interest rate.
Crowd funding is another way to raise funds for the small businesses. Small amounts of money can be funded by a large number of people over a platform. This alternative financing option can take time for wealth to accumulate.
Women entrepreneurs have a distinct advantage in terms of getting loans and expand their business. NBFCs, public and private sectors banks along with the government are floating special schemes to provide loans for a woman-owned business thus helping women entrepreneurs to shape their dreams.
This post was created with our nice and easy submission form. Create your post!