Applying for a business loan? Here’s what women should know

Women all over the world are redefining how economies, countries and organizations perform. Women in business are a new generation of icons and game-changers who are quietly but boldly scaling to new heights. So, congratulations if you have made up your mind to start a business as a woman entrepreneur. If you are considering availing of a business loan for women, here are some important things you must know.

Women can get Rs. 40 lakh loan without any collateral

Did you know women can get business loans up to Rs 40 lakh? Yes, the best part is lenders like IDFC FIRST Bank don't require any collateral or security guarantee. Such a bank loan for women is called an unsecured loan. This is provided to self-employed women looking to avail a business loan. Business loans for women can be availed for business upgrades or equipment purchases. All you have to do is ensure that such business loan is repaid in equal instalments at fixed intervals like once every month. If you run a business, do remember that a business loan can be only given if the enterprise is at least 3 years old.

Women doctors, CAs, non-professionals are also eligible

Just because you do not run a factory or a shop, does not mean the Indian financial system will ignore you. In fact, with the rise in the number of women doctors, chartered accountants (CA), architects, and company secretaries (CS) and other professionals, banks are readily offering loans to women.

A woman doctor can get a business loan with a 60-month tenure i.e. she gets 5 years' time to repay the loan. If women CA’s, CS’s and architects qualify certain conditions, they can avail of a loan with tenures up to 48 months. This loan is just like any other bank loan for women. Talk to your nearest IDFC FIRST Bank branch official to understand how you can benefit from business loans for women.

Take a business loan to consolidate your debt

Many women business professionals have to take loans in the initial setting-up stage of their enterprise. These loans, while extremely helpful, come at a higher cost. Anyone who pays a high-cost loan knows the impact of such debt on their overall finances. Worry not! Women can take a business loan to consolidate all such high-cost loans to enable easier repayments. Once all your loans are consolidated, you can easily focus on the most important thing: growing your business.

For example, women professionals and also non-professionals can transfer existing loans from other banks to IDFC FIRST Bank. This lets them enjoy better interest rates and pay for everything in one place. With your new business loan, all your existing unsecured business loans get consolidated into one IDFC FIRST Bank loan account. All you have to do is pay a consolidated EMI to just one loan account.

Women from Rural India can also take loans

Through Sakhi Shakti loans, women from rural areas can also take business loans from IDFC FIRST Bank to enhance their lifestyles and lead better lives. This is how it is done: Women can apply for a Sakhi Shakti livelihood advancement loan, with basic identity documents. Once the documentation is complete, they will have to undergo useful group training. Then, the loan amount is disbursed to individuals in the women’s joint liability group. Think of it as group loans for women. Relationship officers cover villages within a radius of up to 30 km around the branch. So, households in every village and small town in the catchment area can be served without hassles.

Disclaimer

The contents of this article/infographic/picture/video are meant solely for information purposes. The contents are generic in nature and for informational purposes only. It is not a substitute for specific advice in your own circumstances. The information is subject to updation, completion, revision, verification and amendment and the same may change materially. The information is not intended for distribution or use by any person in any jurisdiction where such distribution or use would be contrary to law or regulation or would subject IDFC FIRST Bank or its affiliates to any licensing or registration requirements. IDFC FIRST Bank shall not be responsible for any direct/indirect loss or liability incurred by the reader for taking any financial decisions based on the contents and information mentioned. Please consult your financial advisor before making any financial decision.