Women entrepreneurs constitute a swiftly growing section among the myriad business owners across the globe. With easily accessible small business loans, female-led enterprises can get adequate financial capital to expand their enterprise and capture the market. However, one must be aware of the associated eligibility requirements and various numerous loan-related formalities to obtain sufficient funds without any hassle.
With various emerging financial institutions offering customized business loans for women, acquiring SME or MSME loans is a cakewalk these days. Packed with numerous additional benefits, small business loans are an efficient and convenient solution to promote the budding female entrepreneurs to start an enterprise on their terms, thereby inspiring millions of other women like them.
Scroll down to know more about small business loans for women entrepreneurs.
Features of a small business loan
- Small business loans are offered to female business owners without requiring them to pledge any professional or personal asset as collateral against the loan amount.
- Ideal to fulfill short-term organizational goals, unsecured small business loans are offered up to Rs. 50 lakhs for boosting the female-led enterprise.
- Offered with an additional insurance cover, small business loans for women entrepreneurs are provided at an affordable interest rate and flexible tenure ranging between 1 to 5 years.
- A feasible growth solution to encourage female business owners in starting their enterprise, the loans come with the additional benefit of fast processing and quick disbursal of funds.
- Involving minimal business loan documents and contactless verification, SME or MSME loans are designed to help women overcome financial limitations at the earliest.
Eligibility for securing a small business loan
Offered at extra special interest rates for women business owners, a small business loan can be acquired upon fulfilling the below-mentioned eligibility conditions:
- The age of the candidate should be at least 21 years at the time of submission of the loan application.
- The age of the candidate should not be more than 65 years at the time of loan maturity.
- The candidate should be a self-employed professional, manufacturer, retailer, or trader.
- The individual should be running the current business for 3 years and must possess at least 5 years of business experience.
- The minimum turnover of a candidate’s business should be INR 10,00,000 in the last 12 months.
- The business must be making profits for the last two years.
- The business should have a minimal annual income (ITR) of at least Rs. 2 Lakhs per year.
Documents required for a small business loan
The pre-requisites for a small business loan for women entrepreneurs include:
- A recent photograph of the candidate
- Valid identity proof of the individual and company such as Pan Card, Aadhaar Card, etc.
- Valid address proof of the company and individual (Electricity Bill, Passport, Aadhaar Card)
- Last 6 months bank statements
- Company’s financial statements along with ITR documents for the past two years
- Numerous business compliance documents such as trade license, establishment, GST certificate
- Sole proprietorship, partnership deed, and certified memorandum of association of the business
Steps to apply for a small business loan
Offered without any collateral to women entrepreneurs to achieve their full business potential, the following are the steps to apply for a small business loan.
- Log on to the official Fullerton India website and click on the ‘Apply Now’ button.
- Then, you will be asked to select the type of loan i.e. ‘Business Loan’ or ‘SME Loan’ as per your requirements.
- In the next step, the candidate will be prompted to provide personal as well as work details. Subsequently, the individual shall upload the supporting documents
- Next, the candidate shall be required to enter the desired loan amount along with the tenure. Then, the system will assess your loan application based on the provided details and instantly inform you about its acceptance or rejection status.
- If the loan request is accepted, a tracking ID will be provided to the candidate, enabling them to check the application status.
- Shortly afterward, a company representative will connect with the individual and help complete the remaining formalities involved in the loan application submission.
- Subsequently, the application shall undergo further verification and evaluation by the concerned department before a final nod of approval.
- Upon adequate verification, the loan will be sanctioned and the candidate will be provided a customized offer by the lender, notifying about the associated terms and conditions.
- After carefully reading the loan agreement and checking the mentioned loan parameters, the women entrepreneurs should sign the documents to avoid any confusion later.
- Within a few hours of loan approval, the sanctioned funds will be credited to the candidate’s bank account to be used for various purposes.