Indian women who want to follow their passion of starting their own businesses are successfully entering the business market as entrepreneurs. If you’ve been planning to start up your own catering, tailoring, retailing or cyber café business, there’s some good news for you.
Your capital for starting up a business can be successfully met with the financial help in the form of loans for Indian women entrepreneurs. Several financial institutions, public sector banks, private banks and NGOs are now offering to help aspiring women entrepreneurs like you.
Establishing and expanding your own business no longer has to remain just a dream, if you’re a woman who wants to achieve significantly in life and have the required skill as well as the talent to start their own businesses. But when it comes to the basic capital to start up the business, things become problematic.
Not all women are supported by their family or spouse to start their own business. If you have been facing similar problems, which have been holding you back, then you need to know that help is available in the form of small business loans for women in India.
While opting for a loan, you have several options at hand. You can either start your business using your savings, and as it begins its successful run, research the various loan schemes for women available to expand your business. The other viable option is to start your business with a small business loan and repay it as your business grows.
There are several institutions ready with helping hands for you, such as Government Finance Schemes, Public Sector Banks, NGOs, Microfinance Institutions, Self-Help Groups, etc. You can choose any one of them depending on the type of financial assistance you require.
Though various schemes for women entrepreneurs in India have existed for a while, women have not been able to maximise their benefits. This has been mainly because women entrepreneurs are not aware about the different avenues of business credit available to them.
How to Apply for Bank Loans for Women Entrepreneurs
Applicants for bank loans for women entrepreneurs are generally required to fulfill certain criteria including a good credit history. That is, you should have made credit card payments or other loan payments on time. This reflects your pay-back power and will help to increase your chances while applying for loans.
You need to have been filing your Income Tax returns on time and have relevant documents with you. Write up a business plan so you can show the bank or any other loan lender how you plan to earn enough to repay the loan—from the profits or by expanding the business.
Your business’ net worth should be positive and there should be no outstanding debts. You can convince the loan lender that you are in the position of paying back with your savings or assets if need be.
In order to be approved for a small business loan for women in India, you will require a guarantor. You need to select a reliable friend or partner from among your family or acquaintances to apply for the loan.
Did you fund or are planning to fund your growth with a business loan? What was your experience? Do share it with us in the comments below.
Photo credit EyeLens