Apply for business loans for women to take your business higher

There was a time when majority of entrepreneurs in India used to be men and they were the minds behind successful businesses but nothing is the same today. Startups are being led by women and there are women taking charge of some of the biggest organisations in the country. Whether you are a woman entrepreneur or want to start your entrepreneurial journey, you are at the right place. There are several business loans for women you can consider. No matter the stage your business is in, you can apply for a loan to fund the business growth and take your business to new heights. Let us take a look at some of the loans you can apply for.

Working capital loan

If you need a business loan to meet the immediate expenses and not for the purchase of assets, then a working capital loan is an ideal choice. It will ensure that you can make the payment of salaries and cover the operating costs as and when due. The loan is short term in nature and should be used only for the specific purpose. You cannot use it to buy an asset or make capital expenditure.

1.  Secured term loan

Secured loan is a loan that is sanctioned when you put an asset with the lender. The asset will be on stake and is known as a collateral. One thing you need to keep in mind is that the EMI should be repaid on time. If you fail to do so, the lender will sell the asset to recover the outstanding dues. You can use a residential or a commercial property for the loan and it has a high loan amount, low interest rate and flexible repayment tenure. Since you hypothecate the asset with the lender, the risk is low. This loan is usually applied for capital expenses like purchase of land or renovation of the manufacturing unit.

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2.  Equipment financing

This loan is ideal for medical practitioners who aim to invest in new equipment for their clinic or diagnostic center. The loan will help purchase new or refurbished equipment like MRI machines, CT scanners, X-Ray machines, etc. However, downpayment will be a requirement here.

3.  Machinery loan

Manufacturing units require new machinery with updated technology. Machinery does not come cheap and there are loans to help purchase them. The loan has a high amount and is meant for buying new or refurbished machinery. You can have the machine as a collateral for the loan.

4.  Government schemes

The government is doing a great job of promoting entrepreneurship in women. You can find multiple business loans for women that serve different needs and have varying loan limits. The interest rates are low but the loan eligibility criteria is strict. The processing time may be high too but if you are looking for a low interest loan to meet a specific business requirement, check out the government schemes. These are some of the common loan options for women entrepreneurs in India. It helps to identify the purpose of borrowing and then pick a loan product.

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