You’ve probably read that starting a business is hard. Well, it is. You will have to handle hiring, finances, accounting, marketing, and everything that goes into running a business. But the good news is that you don’t have to do all of it yourself. In fact, you can even use a personal loan to help you start a business. Do you know that women entrepreneurs are better off today in terms of getting loans and credit, as compared to their male counterparts?
Women entrepreneurs have been on the rise as they seem to be more focused, and more determined. They work towards achieving their goals, not in a traditional masculine fashion, but in a feminine way, with unyielding perseverance, and determination. This blog will talk about online loans for women in India and how they can use this option to start a business.
How Can Women Get a Personal Loan to Start a Business?
1. Add a loan guarantor
A loan guarantor is someone who applies for the loan with you and agrees to be responsible for repaying the debt if you can’t. The guarantor’s income and credit history are also considered when determining whether to approve the loan.
Adding a guarantor can increase your chances of getting approved for a loan, but it’s important to make sure that you both understand the terms of the loan agreement before signing anything. If one person defaults on a loan, the other person is still responsible for repaying it in full.
2. Add a co-applicant
While you might not have a steady source of income to get approved for a Personal Loan, your spouse, parent or sibling might. They can be added as a co-applicant for personal or new business loans. As your application will now have a co-applicant with a steady source of income, the lender could approve your request if you meet the other basic loan requirements such as credit score, employment history, and so on. Adding a co-applicant can increase your chances of getting approved for a loan, so it’s definitely worth considering if you’re not sure you’ll be able to get approved on your own.
3. Government Schemes
There are a few government-backed personal loan schemes that you can consider if you’re a woman looking to get a personal loan for a small business. For instance, you can apply for a loan under the Pradhan Mantri Mudra Yojana for Women or the Udyogini Scheme. These schemes allow woman to get personal loans for small businesses. You can consult with a top bank to learn more about these government schemes.
Features of Personal Loans for Women
1. Multiple Usage
The loan amount that women receive can be used for any type of business venture, whether it’s just starting up or already established. There are no limits on how the borrowed money can be spent.
Just like any other loan, personal loans also come with the flexibility to choose the loan repayment tenure of your own choice. Women can decide how long they need to repay the loan, based on their individual needs and circumstances.
3. Fast Loan Approval
You can apply for personal loans entirely online – there’s no need to visit a lender in person! Plus, the amount of paperwork required is minimal, so you can expect to receive your loan amount quickly.
Eligibility Requirements to Get Approved for a Personal Loan
There are a few eligibility requirements you’ll need to meet in order to get approved for a personal loan. They are:
- The person who is applying for a personal loan should be a citizen of India.
- You must be between the age of 21 to 65 when you are applying for a personal loan.
- Having a stable source of income is a must. You must be salaried or self-employed when applying for a personal loan.
- Your minimum CIBIL score should be above 750.
Documents Required for a Personal Loan
In order to get a personal loan, you need to submit a few documents required for your loan approval. These documents include the following:
- Proof of Identity: Aadhar card, PAN card, Driving license
- Address Proof: Aadhar card, Passport, Rental agreements
- Income Proofs: Income tax returns, Bank account statements, Salary slips.
When you’re taking out a personal loan, it’s important to make sure that the information you provide is accurate and up-to-date. This includes your contact information, employment history, and income.
If any of the information you provide is inaccurate, it could delay the processing of your loan or even lead to your loan being denied. That’s why it’s important to take a few minutes to double-check all of the information you provide before submitting your loan application.
Loan Sanction and Disbursement
Once the loan application gets approved, your lender will disburse the funds in your bank account, and you’ll get a confirmation mail in most cases.