Women entrepreneurs in India is not a new concept. However, women entrepreneurs have still not got good access to additional funds to keep their business running. In order to further encourage women in their entrepreneurial initiative, many lending institutions have introduced various loan schemes and products.
The key features of these business loans for Indian women entrepreneurs include no collateral requirement, attractive interest rates, low processing fees, and flexible repayment tenure. Let’s take a look at the best types of business loans for women entrepreneurs in India offered by NBFCs and online lenders.
Working Capital Loans
also read: what are the types of working capital loan?
Working capital is the amount that is required to meet the everyday finances of the business. While the capital is required for investment in business and to get the business started, working capital helps in to keep running the business. And the working capital loan is availed to meet the working capital requirements of the women entrepreneur.
The working capital loan is the perfect solution to the problems faced by women entrepreneurs in India. With the availed loan amount, they can pay utility bills, buy raw material, increase inventory, pay salaries, wages, and rent, etc. The usual repayment tenure of working capital loans is 12 months.
Capital loans are meant for direct investment in the business. The capital is required to start the business and for its further investment. Capital is the most basic element for any business. Without any investment in the capital, no business can be started. And once the business is in good shape and the entrepreneur witnesses a good growth opportunity, more funds can be invested in the capital.
A capital loan can be availed when the women entrepreneur finds it difficult to arrange for funds to meet capital requirement. Notably, even if the business is doing good and earning good revenues, the women entrepreneur may not be in the position to invest in the growth opportunity she is witnessing. So, in such a situation, she can avail a capital loan.
Machinery is an important factor in the manufacturing business. If a woman is running a manufacturing business, she would know the importance of up-to-date machinery. Upgraded machinery helps in manufacturing products and services at a low cost per unit and of good quality. New machinery also helps in producing defect-free products that help in building a good reputation in the market.
If successful women entrepreneurs do not have enough funds reserved to buy upgraded or new equipment or machinery, they can avail a credit facility for it. A machinery loan without security or with security will help in buying machinery instantly. And the entrepreneurs can repay loans in easy monthly installments.
Flexi loans are the loans specially designed for small business owners who face urgent fund requirements often but do not have time to apply for loans for business. The flexi business loans are a type of loan where the business loans are pre-approved for a predetermined time period.
The women entrepreneur in India can use the funds any time during the predetermined time period. And she will only have to pay interest on the funds used.