In our country, women face a lot of difficulties in getting business loans from Banks & other financial institutions. These financial institutions offering a business loan to women prepare a long list of requirements in terms of securities, documents, background, stringent eligibility criteria, etc.
Different types of business loan for Women Entrepreneurs
To increase women's participation in the business sector and strengthen their economic condition, most of the banks keep launching attractive schemes from time to time. We are explaining in detail about some such best plans.
- Annapurna scheme
Under this scheme, women are given loans related to the food catering sector. There is a maximum loan of up to 50 thousand & the duration of the loan is three years. For the convenience of customers, banks provide the facility of EMI free one month after giving a loan. In this, you need a guarantor and collateral security. The rate of interest will be according to the market rate.
- Stree Shakti package
This package is for women who hold 50% ownership in a firm or business. If you take more than 2 lakh loans, then you are given a discount of 0.5% in the current interest rate. Only women who participate in state-level entrepreneurship development programs can apply.
- Dena Shakti Scheme
This scheme of Dena Bank is exclusively for women entrepreneurs. Under this scheme, women can take loans for farming, production, retail stores, and small scale industries. In this, they get a 0.25% interest rate rebate.
- Industrial scheme
This is the plan of Punjab and Sindh Bank. Under this, women get loans at low-interest rates and there is considerable relaxation in terms and conditions.
- Cent Kalyani Scheme
This is the plan of the Central Bank of India. Under this, the government issued women oriented programs in the sectors such as cottage industries in the rural areas, agricultural industries, handloom-handicrafts, beauty parlors, daycare centers, and retail businesses to get an easy loan. The interest rate of each sector is different and is determined by the market rate.
- Mahila Udham Nidhi Yojana
This loan is provided to promote small scale industry and is given by Punjab National Bank. Under this scheme, you can get a loan of up to 10 lakh, which has to be repaid within 10 years. Like most schemes, its interest rate is also based on the market rate, which varies from time to time. There are special loan facilities for beauty parlor, daycare center, autorickshaw, two-wheeler, or car.
Apart from these, there are Bank of Baroda's Akshaya Mahila Sammanik Sahay Yojana and Punjab National Bank's Mahila Samridhi Yojana, Mahila Sashaktikaran Yojana, and loan schemes issued by Oriental Bank and Bharatiya Mahila Bank.
- Small Entrepreneur Credit Card
Banks often bring something new to woo traders. Many banks have brought small entrepreneurs credit cards in this chain. Its help has made the beginning of business even easier. Many banks offer this facility, after taking detailed information about women entrepreneurs so that they can take a credit card according to their convenience.
To make it easier for the women entrepreneurs to getting a business loan, ZipLoan is providing business loans in metro cities without any pledge with minimal documentation, hassle-free through an online platform – Website and mobile app.
Easy Instalment business loan options for Women
The online application process from Ziploan ensures that the women entrepreneurs do not have to make an unnecessary effort and waste time to physically travel to the office & apply for the business loan. The loan application from the website and the mobile app – ZipLoan for MSME business makes the loan application hassle free from anywhere and anytime. The process will empower women entrepreneurs to save valuable time and energy on a business loan application.
- Quick Disbursal: Ziploan offers quick business loan for women just within 3 days of submission of documents. The fast processing of the loan enables women entrepreneurs to get funds quickly to manage their business expenses.
- Zero prepayment charges: Due to any unforeseen reason if the women entrepreneurs want to foreclose the loan before completing the loan tenure then they can easily do it as the ZipLoan will not charge prepayment penalty after successfully paying the first 6 months EMIs.
- Unique Credit Rating Process: Ziploan understands the needs of businessmen, that's why Ziploan not only follows the CIBIL score criteria for lending business, but it also has a separate credit score policy which is called a Zipscore. Zipscore is calculated by adjusting the documents of the businessman's bank details, ITR of the last 1 years, CIBIL score, and business profit margin. Zipscore increases the opportunity for a businessman to get a business loan.
- Paper-free loan: There is no need to submit documents in person, as the entire loan application process is online through a website or mobile application.
- Collateral Free Business Loan for Women: The loan given by Ziploan is free of collateral security. It provides confidence to the women entrepreneurs to do business without any fear as they do not need to mortgage any item.
Documents required to apply for a business loan
The following documents are required for women to apply for a business loan-
- 1-year ITR
- Annual banking credit minimum of 10 lakhs
- KYC details: Aadhar card, PAN card, etc.
- Within 3 days of submitting these documents, women entrepreneurs will get a business loan ranging from Rs 1 to 7.5 lakhs which can be repaid in easy installments in an interval of 12 to 36 months.
