Women entrepreneurs are making significant progress in India. They are playing a crucial role in the economy by creating jobs, driving innovation, and contributing to economic growth.
Despite facing gender-specific challenges, such as lack of access to networks, and capital, women entrepreneurs have demonstrated resilience and entrepreneurial spirit.
To address the capital requirement, leading financial institutions provide SME/MSME loans to women entrepreneurs.These loans provide women entrepreneurs with the financial support needed to grow their businesses and achieve success.
What Are SME/MSME Loans?
SME or MSME loan are specifically designed to support small and medium-sized enterprises. These are unsecured business loans that offer a large loan amount depending on the business’s needs. These loans do not require collateral and are based on the borrower’s creditworthiness and financial history.
How Are Unsecured SME/MSME Loans Beneficial to Women Entrepreneurs?
SME/MSME loans are powerful tools for empowering women entrepreneurs. These loans provide women entrepreneurs with access to capital, enabling them to grow their businesses and achieve their goals.
Let’s take a look at the key benefits of SME/MSME loan for women entrepreneurs:
- No Collateral requirement
The biggest advantage of these loans is that they are unsecured. This means women entrepreneurs can access funds without pledging any collateral, which makes it a suitable option for them. The flexible repayment options of SME/MSME loans can also help women entrepreneurs manage their cash flow and invest in business growth.
- Flexible repayment options
SME/MSME loans offer flexible repayment options, which can help women entrepreneurs manage their cash flow and invest in business growth. Repayment schedules can be tailored to suit the business’s needs, enabling women entrepreneurs to balance the demands of business growth and manage their finances.
- Minimum documentation requirements
In this busy world nobody likes the long and hectic process of documentation. Minimal documentation requirements with these loans are a great perk.The best part about SME/MSME loans is that they require less documentation which saves a lot of time.
- Build credit score
In addition to providing financial support, SME/MSME loans can also help women entrepreneurs build their credit score. A good credit score is essential for accessing credit in the future, and these loans can help women entrepreneurs establish a positive credit history.
- Business expansion opportunities
SME/MSME loans can help women entrepreneurs expand their businesses and take advantage of new opportunities. For example, someone looking to introduce a new product or service, they may need additional capital to invest in research and development, marketing, and production. These loans can provide the funding needed to pursue these opportunities, enabling women entrepreneurs to grow their businesses and stay competitive in the market.
- Access to large capital
Besides all marketing strategies, research, and product or service analysis, funds are the base of any business. Access to capital can be a significant barrier for women entrepreneurs, particularly those who want to grow their businesses. SME/MSME loans can provide women entrepreneurs with the financial support needed to establish themselves in the market. Women entrepreneurs can get loans of up to Rs 50 lakhs without pledging any collateral. They can spend this amount on several aspects of their business.
Standard Eligibility Criteria to Secure SME/MSME Loan
- You must be at least 21 at the time of loan application and no older than 65 at the end of the loan’s term.
- You should be a sole proprietorship, private limited company, closely owned non-listed company, or partnership firm engaged in manufacturing, trading, or services
- Reporting 24-month audited financial accounts, doing the majority of business through a banking system, or recording your turnover over the previous 12-month period through GST returns
- A running business in the current field of endeavour with at least three years of cumulative business experience.
- A CMR score of up to 6 and a credit score of 700 and above.
Conclusion
Women in India are making significant strides in business. With access to capital and support, women entrepreneurs in India can continue to drive innovation, create jobs, and contribute to economic growth. SME/MSME loans from new-age lending institutions like Clix Capital are empowering women entrepreneurs in India by providing them the required funding without pledging collateral security. These loans provide women entrepreneurs up to Rs 50 lakh at competitive rates and flexible repayment tenures, enabling them to grow their businesses and achieve their goals.
About the Author
Amaira Sharma is finance expert and former business growth strategist who has more than 8+ years experience in the industry, now she helps others to get better financial stability and standards. She loves to write useful tips on personal finance and businesses.