As per the MasterCard Index of Women Entrepreneurs 2019, India ranks 52 out of the 58 countries in terms of women entrepreneurship. India’s rank remains unchanged compared to the previous year. Additionally, women account for only 13.76% of entrepreneurs in the country.
The government has initiated several programs and initiatives to uplift women entrepreneurship. Additionally, in order to improve the number of women entrepreneurs in our country, several financial institutions are offering business funding
to women in terms of corporate credits at nominal interests with fast disbursal rates of such loans.
Important points to know to avail business funding easily
There are several points every woman entrepreneur should keep in mind to help their business flourish, which are –
Prepare the documents and financials
As an entrepreneur, you should make sure that all financial documents of your business are organized and updated to the current date; such documents mainly include profit and loss statements, income tax returns, etc. Referring to the checklist for a business loan application can help immensely.
You have to prepare your financial plans before applying for small business loans from NBFCs.
Additionally, you may also have to provide various documents supporting the existence of your business.
These can include –
- GST registration certificate,
- Trade license,
- Partnership deed,
- Memorandum of Association/Articles of Association,
- Business PAN,
- RoC certificate, etc.
Moreover, business owners should always be wary of their credit reports. A good credit score will provide you with a higher chance of availing a business loan for women. It is also essential for business owners to avoid credit defaults, negative customer feedback, etc. and to keep monitoring their credit score regularly.
Fulfill the eligibility criteria
A business loan usually comprises the following eligibility criteria –
- You need to be within the age bracket of 25 to 55 years in order to avail of a business loan.
- Your company needs to be running for at least three years.
- As an applicant, you have to file your income tax returns for the past three years.
Reputed NBFCs such as Bajaj Finserv offer Business Loans for Women at simplified eligibility criteria and minimum documents.
They also bring pre-approved offers that make availing loans simplified and less time-consuming. Such offers are applicable to numerous other financial products such as personal loans, business loans, etc.
Consider the utilization of funds
Various financial institutions offer loans for a woman entrepreneur in India
at attractive interest rates and easy eligibility criteria. As an entrepreneur, you can avail of a small business loan amount ranging up to Rs.30 lakh in order to finance the purchase of improved machinery, enhanced equipment to adopt the latest technology in your business module, etc.
You can make use of such a business loan for women for several other purposes such as –
- Improve your business cash flow to increase working capital.
- Expand your office premises.
- Stock up your inventory.
- Purchase higher quality supplies.
- Scale-up your business operations and work on high-value projects.
Such loans also comprise flexible repayment tenors ranging from 1 year to 8 years. To avail, such a loan, women entrepreneurs are not required to mortgage collateral; thus, it makes the application process relatively fast in comparison to other secured credits.
From the above discussion, you can learn about the factors that every woman entrepreneur needs to be aware of in order to avail of business funding. After availing, make sure to repay it without any delay to improve your creditworthiness.