Business

Why is a Business Loan for Women Ideal to Fund Women-Owned Firms?

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Why is a Business Loan for Women Ideal to Fund Women-Owned Firms? The Mastercard Index of Women Entrepreneurs (MIWE) 2018 says that 11% of business owners in India are women. The score India received from this report was 42.7, putting it in a rank of 52 among 57 countries.

The Government and the finance sectors are two key players who are continuously trying to benefit women-owned businesses and improve this country’s rank.

The finance sector brings its business loans for women as a funding solution for women-owned enterprises. NBFCs provide these loans to women looking to fund their small businesses efficiently.

The following are some of the features a business loan for women comes with.

  1. Only a few documents required to apply

Women can provide only their KYC documents (Aadhaar, PAN, Passport, Voter ID, Driving License, etc.) and proof of business existence (Trade license, GST registration, Articles of Association, Memorandum of Association, etc.).

Additionally, they may need to produce relevant financial documents (Balance Sheet and Profit & Loss statement) of the previous year, income tax returns of the last year, and bank account statements of the previous 3 months.

  • Simple eligibility criteria to meet

NBFCs need women to be between the ages of 25 and 55 with a business vintage of at least 3 years to apply for a business loan.

  • Fast approval within one working day

Business loans for women can be beneficial in times of emergencies as they are approved within 24 hours.

  • Ample amount to finance any business need

Women can receive financing of up to Rs. 30 Lakh from these loans. They can utilise these funds to address any financial gaps in their firm effortlessly.

  • Prolonged repayment tenor

The repayment tenor of a business loan for women ranges from 12 to 96 months. Customers can enjoy the flexibility to choose a repayment schedule as per their convenience.

  • Instant financing with pre-approved offers

One of the most trustworthy financial organisations, Bajaj Finserv provides with pre-approved offers to enable instant financing.

Pre-approved offers are exclusively for their existing clients, which not only make the procedure of availing funds easier but also less time-consuming. Such schemes come with business loans, personal loans, home loans, and several other financial products and services. You can check your pre-approved offers by submitting only your name and phone number online.

  • Flexi Loan facility for more convenience

Bajaj Finserv also brings the innovative Flexi Loan facility for women, which allows them more flexibility in managing the business loan.

Here, the company sanctions funds much like standard term loans. However, as a borrower, you don’t need to start paying EMIs soon after. In Flexi Loans, the interest rate is charged only the fund you withdraw from the sanctioned loan amount and on a daily basis. You can also choose to pay only the interest as EMIs. Make the repayment of the principal at the end of the loan tenor. Thus, you can bring down your EMIs by almost half with a Flexi Business Loan. Thus, women-owned firms can either go for unsecured loans to meet all short-term expenditures or secured loans to cover the long-term business expenditures easily.