Indian women who wish to fulfill their passion and begin their own businesses are becoming entrepreneurs successfully. Being a young Indian woman, you possibly have some amazing business concepts which you wish to fulfill when you begin your entrepreneurial journey. Is there any concept in your mind which can make you a successful businesswoman? If yes, then you know that the most crucial thing you require for starting a business, aside from the concept, is capital.
Every business needs some initial investment. It might be utilized for setting up a workspace or for purchasing equipment, raw materials or even for paying employees. And in fact, if you have an awesome idea and your business lift off, there is still a preparation period at the starting where you require spending money from your own pocket.
In case you are a determined woman who wishes to begin her own business or develop and maximize an existing business, this no more has to stay only a dream. However, when it comes to financing a business, not every woman gets their family or spouse’s support. So, what will you do if you don’t have sufficient capital to finance your start-up?
It’s quite normal for somebody new to the entrepreneurship world to experience hassles with financing their concepts, because they have possibly begun with no sturdy background, and even it might be their first try for running a business. In case the issue of funding your woman-owned business in India has been restraining you, there is a help in the form of small business loans for women entrepreneurs.
Dos and Don’ts of Small Business Loans for Woman Entrepreneurs
There are many women entrepreneurs who look for small business loans to begin or develop their businesses. Many of them face a hassle while determining different business loan options available in the market. Planning for a business loan is certainly a big decision. Here are some dos and don’ts mentioned below to clear your confusions:
- Know your actual financial requirement. How much financing do you need?
- Have you made a business plan prepared for justifying your loan repayment capacity? Maximum lenders might be asking for this.
- Which assets are given beforehand? All traditional lenders need collateral or security. However, to apply for a collateral-free loan, you can choose a FinTech lender like Indifi.
- What is the EMI ratio to your income? Make sure that it’s not over 25% for abstaining from risks.
- How much interest would you pay on your loan amount? Choose the scheme with the lowest rate of interest.
Different Types of Small Business Loans Available For Women Entrepreneur
Generally, loans are secured or unsecured. In case your lending partner knows you properly and is convinced of the productivity of your business, you might be capable of borrowing small business loans for your business. The 3 prime loan facilities which can be availed are:
- Corporate Term Loans – These are long-term loans and comprise of negotiable interest rate which is useful while launching or maximizing a business venture.
- Term Loans – You can choose a term loan of 1-10 years duration with a rate of interest between 10 to 20% in case you are planning for purchasing fixed properties like building, equipment, etc.
- Working Capital Loans – These loans are designed to fulfill your daily business costs or operational expenses. These can either be unsecured or secured with the rate of interest up to 12-16% for the duration of 1 year.
Non-Banking Financial Company: The Most Feasible Loan Provider for Women
Definitely, the traditional institutions like banks are not single places where you can borrow a loan for women entrepreneurs. There are many NBFCs like Indifi which also offer loans for women entrepreneurs.
When it comes to financing your business, you will find many options. Choose an alternative lender like Indifi to manage your business debt with confidence and clarity.