Businesses are generally meant for people who are ready to take up challenges in their life. And if a woman decides to take up this challenge, the Government of India has come up with enormous supportive schemes to handhold and to make sure that the experience is smooth as possible. Gone are the days where women were just limited to homes. Nowadays, you will find them competing with men in every sphere of life including entrepreneurship.
Also read: Broader Picture Of Women Entrepreneurs
In the past two decades, there is a significant increase in women-owned business and the strong reason behind this is the availability of several schemes by the Government to support their initiatives. But the biggest challenge for women entrepreneur is to source the fund for business. Be it an existing business of a very innovative business idea, there are several banks that are ready to offer business loans to women entrepreneurs.
Moreover, the women-owned business has become a strong reason for Indian economic development and at the same time has increased the country’s employment opportunity. Despite of have great business ideas, if there is no enough funding for it, the success of the business will always remain a question. With the help of women entrepreneurs loan, owning a business will become more realistic and affordable.
Several public as well as private sector banks have come up with the lending schemes for women entrepreneurs. There are many types of loans and schemes that are specifically framed for them. These schemes are proved to be beneficial as they provide relaxation for collateral security requirements and ROI perspective. In most of the cases, the interest rates of bank loan for women entrepreneurs vary from 0.25% to 1% only.
Also read: How To Escalate The Loan For Women’s
If you are ready to pursue small business loan, all women entrepreneurs just have to follow simple steps mentioned below:
Establish a small business with sound business principles
Start your business with good financial practices including a trustworthy financial institute that can provide you with variety of flexible small business programs and lending options.
Register your business with bank accounts
Treat your business as a separate entity from your personal financial portfolio. Get an official business name, a tax identification number and a business bank account established from day one.
Get your business approved as a women-owned business
Get certified as a women owned business. This will help you to become eligible for additional business opportunities and lending options.
Update and complete financial reports for your small business
Using your accounting system, make sure to run regular reports that show your profit and loss, expenses, taxable income and paid taxes. This information is required when applying for a small business loan.
Maintain good repayment terms and take out future loans for larger amount
The best part for taking out a small business loan for women is having a flexible repayment terms that can allow paying it on time. Do this and there won’t be any trouble in getting more loans in the future.