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Check Eligibility of Loan for Women & Apply Online


When women start a small business, they often face numerous challenges. Hence, they need special loans tailored to their needs. Here are some factors affecting business loans for women, their eligibility, and how to get special offers for women business owners on loans.

What Do Business Loans for Women Mean?

Today, there are more and more female entrepreneurs. They are taking control of their finances and becoming more stable and educated. It also means that they can help other women because they know what other people might need when it comes to finances or business advice.

Here are a few reasons why a loan for women is the way to go:

  • Women in business are on the rise. Women make up 20.37% of India’s MSME (micro, small, and medium enterprises) owners. They account for 23.3% of the labour force and are the economy’s backbone.
  • Women reinvest in their businesses more than men—and for a good reason. To succeed as an entrepreneur, you need to put your money where it counts: into your business and its growth. Women tend to do this better than men because they have more empathy for their community and family needs, which means paying employees better and ensuring workers’ rights are respected.
  • When women receive microloans, it improves their lives and the lives of their families. They can invest in new businesses and create jobs for more people. This creates a ripple effect that impacts their communities and the country’s economy.

Why Do Women Need Business Loans More Than Men?

Women are considered to be the backbone of every society. However, they lack the opportunities to explore their potential. As a result, many female entrepreneurs and small businesses fail in their endeavors. This can be attributed to a lack of financial support, which is a vital factor in running a successful business.

Women need business loans more than men because they have fewer options for borrowing capital from banks or other financial institutions. This is due to various reasons like lower income levels, etc., thus making them ineligible for bank loans.

A small Business Loan for Women is perfect if you are starting as an entrepreneur and need capital to get your business going. You might need this loan to open a new location or add a new product line.

The best part about this type of loan for women is that it comes in all shapes and sizes, so no matter what kind of business you own, there will be a loan that fits your needs. Many different repayment options are available; choose the one that works best for your budget.

Eligibility Criteria for a Business Loan for Women

To apply for a business loan for women, you must be:

  • A citizen of India. You should also be residing in India at the time of your loan application.
  • No past loan defaults.
  • A minimum credit score of 650
  • You should have a business plan in place. This includes outlining what kind of business you wish to start, how much money it will cost, and how much profit you expect to earn.
  • Have an active bank account to deposit the loan repayment amount each month (the lender will use this account to transfer funds).

Documents Required to Apply for Business Loans for Women

To apply for a business loan for women, you need to submit the following documents:

  • Filled out and signed the application form
  • KYC documents like business incorporation certificates, business entity proof, articles of association, partnership deeds, shop certificates, and establishment certificates.
  • Income proof (last 6 months’ bank statement)
  • Passport-size photograph of applicant and co-applicants
  • Identity proof (PAN card, Aadhaar card)
  • Address proof
  • A detailed business plan

How to Apply for Business Loans for Women?

You can apply for a small business loan for women by visiting your bank’s website or lender. The bank will review your application and check your credit rating. If approved, it will deposit the money into your account within 3 business days.

Factors That Determine Your Business Loan for Women Eligibility

Several factors determine your business’s loan eligibility. These include:

  • Your business’s credit history
  • Your business’s profitability, cash flow, and growth potential
  • The industry in which you operate
  • Your personal credit history, income, and assets
  • Your business’s stability and financial strength
  • The size of the loan you need 
  • Your business’s financial statements
  • The quality of its management team 
  • Your business’s creditworthiness

Women Have Access to Special Loans at a Lower Interest Rate

Most lending agencies offer special rates and terms on loans for women, so they can take care of themselves, their families, and all the other things that make them happy.

You can get a business loan of up to Rs. 1 crore and working capital loans for women entrepreneurs. The interest rate on these loans is lower than on standard loans, making them more accessible to women who want to start their own businesses.

Access to special business loans at a lower interest rate makes them more affordable for the female borrower and easier for the lender to service. 

The Bottom Line

Women entrepreneurs can get special loans tailored to their needs. With loans for women at lower interest rates and tailored repayment periods, it’s easy for women to get the financing they need to start or grow their businesses.

To read more similar blogs and other finance-related articles, head to the Piramal Finance website.