8 Govt Schemes For Women Entrepreneurs In India To Get Small Business Loans

Planning for a business loan is a big decision, and schemes for women entrepreneurs could be a great option to explore. Following the below mentioned do’s and don’ts should help you:

What kind of small business loans can be availed?

Loans are usually secured or unsecured. If your lender knows you well and is convinced of your business productivity, then you might be able to get unsecured small business loans for your business. The three major loan facilities that can be availed are:

• Working Capital Loans: Crafted to meet your day-to-day business expenses or the operational costs, these can either be secured or unsecured loans with interest rate up to 12-16% for a tenure of 12 months.
• Term Loans: You can opt for a term loan of 1-10 years tenure with interest rate between 10-20% if you are planning to buy fixed assets such as machinery, building etc.
• Corporate Term Loans: These are term loans of longer tenure and negotiable interest rate useful while starting up or expanding a business venture.

The Indian govt offers many small business loan schemes for women entrepreneurs

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In this article, we have answered some FAQs about personal finance and how to choose the correct loan plan to boost your business.

• Understand your real financial need. How much funding do you require?
• Do you have a business plan ready to justify your loan repayment capability? Most lenders or banks might be asking for it.
• What assets are at stake? Most business loans require a security or collateral.
• How much interest would you be paying on the loan amount? Opt for the scheme with the lowest interest rate
• What is the ratio of your EMI to your income? Ensure that it is not more than 25% to avoid risk.

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