5 Ways to unlock financial freedom: Women entrepreneurs loan

Today, over 20% of Indian businesses in the MSME sector are owned by women and offer employment to around 2.7 crore individuals. Amidst such encouraging numbers, women entrepreneurs' loans have emerged as an ideal solution for businesswomen looking to fund their businesses or expand their operations. 

If you are applying for a women entrepreneurs loan, there are several aspects that you must consider before you get started. Let's explore the crucial facets of business loans for women and how to ensure a hassle-free borrowing experience.

Women Entrepreneurs Loan - things to consider 
 

Listed below are some factors women must consider while taking a small business loan. 

Develop a business plan

You must prepare a comprehensive business plan before applying for a women entrepreneurs loan to improve your eligibility –

• The business plan must include detailed financial statements to help the lender understand your requirements
• Make it a point to include a business loan amortisation schedule to explain the repayment plan

Assess your needs
 

Before you apply for a loan, evaluate your business's financial needs carefully –

• Accurately determine the amount required based on actual costs for inventory, machinery, and other expenses 
• Get a clear understanding of your requirements to avoid overspending that can otherwise increase your financial burden

Undertake extensive research
 

One of the best ways of understanding business loans is to perform exhaustive research before applying –

• This strategy will help identify lenders who offer the best interest rates for business loans for women 
• Learn about the different steps involved in the business loan application process
• Also, find out about factors such as interest rates, repayment terms, and eligibility criteria to make an informed decision

Maintain a good credit score
 

Your credit score will play an important role in determining your eligibility for a women entrepreneurs loan –

• Lenders prefer a credit score of 750+ and offer favourable terms to such borrowers
• Before you apply for a business loan, check your credit report thoroughly to identify any discrepancies 
• ·You must also undertake steps to improve your credit score. it would include paying existing EMIs on time and keeping your credit card utilisation ratio under 30% 

Opt for affordable EMIs
 

You must ensure that the EMI amount is in sync with your business's cash flow to avoid instances of missed business loan payments –

• Select a combination of the loan amount and repayment tenure that results in an affordable EMI 
• Negotiate with the lender to lower the interest rate – even a slight relaxation can reduce your EMI amount considerably

Also read - 4 Reasons why you should automate your business transactions

​​Making dreams come true

Taking a women entrepreneurs loan with favourable terms can be a game-changer for your business venture. It is where an IDFC FIRST Bank Business Loan comes into the picture. Features like collateral-free loans of up to Rs 1 crore, loan tenure of up to 48 months, and affordable interest rates starting from 15% per annum make IDFC FIRST Bank Business Loans a great option to grow your business. 

Click here to learn more about IDFC FIRST Bank Business Loan offerings.

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