With the rising awareness towards women’s empowerment, lending institutions assist female entrepreneurs with hassle-free credit options. Businesswomen seeking an affordable business loan can approach renowned financial institutions to avail adequate capital to be employed in their businesses. 

Eligibility for a Business Loan for Women

A business loan for women is available against minimal eligibility criteria. Common eligibility parameters for business loans are as follows: 

• Self-employed/Proprietors/Partnership firms/Private Ltd/Directors of a business are eligible entities for a business loan.
• The age limit is 25-65 years. 
• The minimum annual turnover requirement is Rs.10 lakhs per annum, and the business should have been making profits for the previous two years.
• The applicant should have a total business experience of five years.
• Borrowers must have been engaged in the particular business for at least three years.
• The required CIBIL score for getting affordable women’s business loan interest rates is 750.

Preferential Interest Rates 

Financing is one of the challenges for women entrepreneurs. This issue can easily be resolved with renowned lenders offering preferential interest rates for women’s business loans. Women’s business loan interest rates largely depend on various factors, including loan amount, tenure, credit history, and current cash flows. The better the applicant’s credit profile, the lower the interest rate.

Documents

One can get funds up to Rs.50 lakhs with easy documentation. Lenders may need the following documents to process a business loan for women application:

• Proof of business existence (Incorporation Certificate, Board Resolution, Partnership Deed, Memorandum & Articles of Association).
• Income documents with the latest ITR (Income Tax Returns) for two years.
• Bank statements for the past six months. 
• Address proof
• Age proof
• Identity proof

This way, women entrepreneurs can apply for a business loan at special interest rates with NBFCs (non-banking financial institutions) like Fullerton India and fund varied business requirements.

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