These days many women are qutting their jobs to start something of their own. Once the initial business is formed and they have proved the success of the business model, be it a salon, a dabba delivery service, a wedding photo/video boutique, a diagnostics centre, a bakery or a tech firm, funds are required to chase growth. Women entrepreneurs face the same problems as their counterparts: lack of adequate funding at the right time.
With a business loan, things are different. With the ability to raise up to Rs 50 lakh in loan for business, finance is not a constraint anymore if you have business loans by your side. Given the emergence of women business owners, it is important to make you aware of how women can apply for this funding. Read on.
Business loan eligibility
Any financial institution considering giving a business loan wants to be sure that repayment will happen. It is difficult to make decisions based on subjective factors. Hence, all potential women borrower applicants are check for business loan eligibility. There are a few norms, and if you as a woman borrower qualify, you can apply for a loan for business.
For instance, Tata Capital’s business loan eligibility rules say the woman borrower should be in the age group of 25-65 years, have a business that is in existence for three consecutive financial years, and business should have cash profit in the last two financial years. A business loan is mostly unsecured i.e. no collateral, hence lenders prefer to give business loans to businesses whose turnover shows an upward trend. Also, the business’ balance sheet must be audited by a registered chartered accountant.
Keep documents handy
The sure-shot way to assess your business loan eligibility is verified documents. Women applicants must keep all the related documents handy so that the financial lender can verify them. First you will be required to submit a photo identity proof along with your business loan application form with passport size photographs. So, submit a copy of your Voter ID, Passport, Driving License or Aadhaar card. Next, your bank statements will be checked. So, submit a copy of your certified bank statements for the last 6-12 months. As business proof, there will be other documents that will be required.
For instance, Tata Capital asks for trade license, establishment or sales tax certificate (or GST certificate), and ownership documents like sole proprietorship declaration or certified copy of partnership deed. You will be asked for income tax returns (ITR) along with computation for the last two years. If you have P/L Profit/Loss statement and balance sheet for the last two years, it will help you be eligible for business loans.
Ways to apply for business loan
For women applicants, there are many ways you can apply for business loans.
- Apply on Whatsapp – Go to https://www.tatacapital.com/loan-on-whatsapp.html and use the power of social media to get your loan for business.
- Quick apply on website – Go to https://www.tatacapital.com/business-loan.html. Give full name, email ID, mobile and select city of residence.
- You can also walk into any branch near you and talk to a representative about your business loan needs.