In order to induce entrepreneurship among women, our government has introduced many business loans for women.
There has been a tremendous growth of the MSME businesses in India before COVID-19 entered into the scene. Many industries are now badly hit due to COVID-19 lockdown.
As a matter of fact, the MSME sector adds to practically 45% of the productivity and 40% of the GDP growth of the nation. With the growing scarcity of business finance and with the coming up of Fintech companies, it has now become advantageous for women to take an interest in the starting new business even from small towns and villages.
Together government and private Fintech companies are providing much financial assistance to the women entrepreneurs.
Need for businesses loans for women
About 48% of India’s populace comprises of ladies yet tragically just 25% of this rate is engaged with some or the other business activity. To empower the most talented women entrepreneurs, rapid and simple access to funds is made accessible nowadays to women entrepreneurs. This is to build the current information of 8 million women business visionaries duplicated by various occasions.
We must now learn about different kinds of business loans for women.
Salient Features about businesses loans for women
Given below are some key features regarding the business loans for women:
- Easy availability: Many Banks, NBFCs, and other Fintech establishments are readily offering loans to ladies without security to urge them to be a piece of the development of the economy of India thinking about their high potential, skill, and capability.
- Concessional Rates of Interest: Many budgetary structures offer a concessional pace of interest to loans given to ladies with the goal that they can apply the overflow sum determinedly into the smooth running of their business.
- The easy options for reimbursements: Women have the influence to pay their portions on a week by week, fortnightly, or month to month premise according to their benefit. Likewise, there are no extra charges on the off chance that they need to repay their loan after the first EMI experiences which is an additional advantage.
Essentials Documents for availing Business Loans for Women
Here are the documents are necessary to apply for business loans for women:
#1. Application Form:
The application must be in proper form and undersigned and stamped wherever required.
#2. KYC Documents:
The following documents must be ready for KYC purpose before applying for the loan:
- Articles of Association
- Business proof of the existence
- Shops and Establishment Certificate in case of Sole proprietorship
- Certificate of Incorporation in case of a company
- Partnership deed in case of Partnership firm
#3. Financial Evidence:
For assessing financial credibility, the current year business and a projected aggregate turnover are necessary:
- Income Tax audit reports, if turnover above INR 2 crore.
- Statement of Profit and Loss
- Balance Sheet
- Last 3 year’s Income Tax Returns
- Audited and Financial statement
#4. Bank Statements of at least the past 6 months is to be provided.
#5. PAN Card of the business entity, partners, proprietors, entrepreneurs, and co-applicants
#5. Passport size Photographs of the applicant, partners, and co-applicants
#6. Valid Address proof of the applicant and co-applicants as well as the business entity.
These are the main documents for availing business loans for women entrepreneurs.
With the easy availability of funds, women entrepreneurs. Apart from that, there are various business ideas that women entrepreneurs can begin from home.