Business

Women’s Business Loan Applications: A Tool for Financial Inclusion and Growth?

Over the past few years, India has witnessed tremendous economic growth. A surge in the number of women entrepreneurs has brought remarkable changes in the economy. As gender equality continues to gain importance, there has been an emergence of various fintech platforms catering to business loan for women in India. Today, easy and convenient access to business loans for women has helped rural and urban sectors alike. 

Under the Prime Minister’s Employment Generation Programme (PMEGP) Scheme, so far more than 1.38 lakh projects have been established by women entrepreneurs. Through the option of MSME loans for women, the government has indeed given wings to female entrepreneurs. So, if you are a woman who dreams of spreading her wings as a businessperson, this post can offer some insight into how your application can get you an instant business loan and become a tool for financial inclusion and growth. Read on. 

When preparing your business loan application keep in mind the following things:

  1. Chalk out your capital needs
    The first step to seeking a loan is to chalk out all your needs. Spend some time to see and analyse how much money you need, how will you use it, how long will it last, etc.
  2. Make sure your business plan is solid
    When you seek a loan, it is best recommended that you think like a lender. So, keep in mind that your business plan is the first impression that you will give to the lender. Create a detailed plan explaining how the cash flow will ensure smooth operations.
  3. Check your eligibility
    Most lenders have the same eligibility criteria for men and women alike, which have to be cleared. Make sure you are well aware of all such aspects. The loan amount, the credit score, the repayment conditions, etc are crucial aspects that cannot be ignored.
  4. Complete your paperwork
    Thanks to digitization in the financial sector, you do not need to produce a heavy set of documents. However, make sure that you have the following:
    • Cover letter
    • Business plan
    • Income tax returns
    • Bank statements
    • Aadhar card
    • PAN card etc.
  5. Maintain a good CIBIL score
    A good credit score or CIBIL score opens the doors to quick and easy business loans for women. A score above 600 puts you in a good light and reflects your creditworthiness. In case your score is low, it is suggested that you avoid applying for a loan right away. Take some time, improve it and then apply for a loan to avoid rejection.
  6. Understand the loan
    Understand the loan type, its interest rate, its repayments tenure, charges it levies etc before you apply for one. Compare different loans and lenders and then take your time to make a well-informed decision. 

For women who wish to pursue their entrepreneurial dreams, even if on a small scale, a business loan can give the required start. Be it a beauty salon, a tuition centre, a daycare centre, a boutique or any other set-up, such a loan can cater to a diverse range of needs. Business loan apps have further made it easy for women to enter the business landscape. The Lendingkart loan app facilitates access to capital and resources. These loans can further play a crucial role in bolstering women’s presence in the business realm and amplifying their voices.

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