Contributing to the changing economy of a world, a growing number of women have taken up the role of entrepreneurs. Running a successful business however, not only requires dedication but enough funding as well.
Fortunately, financial organizations and banks today are supporting women entrepreneurs through dedicated loan services. Taking aid of these types of financial reserves can indeed help your business run in a much faster motion. They can be used to boost your business in several ways such as expanding production, taking on newer projects, aiding the supply chain and hiring new staff to name a few.
In a bid to felicitate women empowerment, a number of loan schemes are being supported by the government. They are designed with a view to help women pursue their dreams and bring to them opportunities like never before. Here are two popular loan schemes that you can avail include:
Annapurna – Women who are part of a partnership firm or run their own business can avail of this scheme. It is an entrepreneur loan that is extended to women wanting financial assistance when setting up a food business. It can be used to purchase kitchen equipment or other capital. The Annapurna scheme lets you repay your loan within 36 months through easy installments. However, you must note that the maximum loan offered through this scheme is INR 50000. You may also have to provide collateral and security through a guarantor.
Stree Shakti Package – If you have 50% ownership of your small business, then you can avail of the loan through the Stree Shakti Package. This loan is specially offered to only women and those who have pursued Entrepreneurship Development Programs. However, the program must be completed through state-level-agency in order for you to qualify for the scheme. Apart from the loan, business assistance is also provided.
Eligibility for small business loans – If you are applying for a small business loan through any financial institute or bank, you will have to meet an eligibility criteria. Your business should be running for a minimum duration of 3 years while being profitable for at least a year. Most banks also require the applicant to be a minimum of 21 years of age and not older than 65 years. The business loan is offered with quick approvals and minimal paperwork making it a very smooth process.
As you venture and take your business to new heights, being well-informed of the opportunities available for you can be extremely helpful. Prepare well for loan application by conducting intense research, meeting the requisite paperwork and producing the right documents.