Small Business Loans: A Boon for Women Entrepreneurs

6 Min Read
Two business women in the office working.
Women empowerment has taken over the world, especially the business world! Over the last few years, the female segment of our society has been a significant contributor to businesses. But that does not mean they don't face problems. For women entrepreneurs, the trouble often begins at home.

Read this article to know what challenges a woman entrepreneur faces and how loans can be one of the best solutions!

Problems Faced by Women Entrepreneurs in India

The patriarchal setup is ingrained in the male-dominated business world. In fact, the Sixth Economic Census by the National Sample Survey Organization (NSSO) reported that among the 58.5 million businesses in India, only 8.05 million were women-led. Despite these discouraging statistics, women want to shine in the entrepreneurship world but are left to deal with challenges and hardships like:


1.     Mindset

Questions have always been raised about whether women can run successful businesses. Time and again, they have proved to be excellent entrepreneurs, but people still think they are incapable. For this reason, they don’t get the opportunities they deserve.

2.     Networking

According to a statistic, globally, only 1 in every 3 women own a small, medium, or large business. This makes it harder for them to network and socialise on a large scale since they are smaller in quantity than their male counterparts.

3.     Upbringing

The patriarchal mindset affects both genders. Where women are considered to stay at home and take care of the family, men are pressured to be the bread earners and handle professional matters. We have been accustomed to this mindset that has been a contributing factor to the problems faced by women entrepreneurs.


4.     Financial Options

Just started or well-established, every business needs money to run efficiently. And women entrepreneurs suffer to find funds. Families usually hesitate to invest money in a women-owned business due to the thinking that women are incapable of running a successful business.

However, today, there are several ways a woman can fund her business. Financial institutions have come with different loans to help you start or expand your business further!

Types of Business Loans for Women

Whether you are just birthing your business venture or want to expand your already hit plan, different loans are available to curb your financial needs! Let’s explore the options you can get as a woman entrepreneur.

Instant Online Business Loan

Personal loans for women are a perfect solution to fund your business needs! Today, many fintech start-ups have multiple business loan models with 100% online processes and minimal documentation. Even if you don’t have an excellent CIBIL score, or if you are new to credit, you have several options to explore!

Business Loan Schemes

Banks and the government have created attractive business loan schemes for women-led businesses!

Schemes by Banks

Several banks provide loans to women who want to begin their entrepreneurial journey. These have more flexible terms of conditions regarding collateral, interest rates, etc. Some popular bank loan schemes are:

  • Dena Shakti Scheme
  • Cent Kalyani Scheme
  • Stree Shakti Package
  • Orient Mahila Vikas Yojana Scheme

Schemes by Government

Government schemes for women entrepreneurs usually come with low-interest rates. They are available as both secured and unsecured loans. Here is a list of popular government schemes to boost your business:

  • Mudra Yojana Scheme
  • Mahila Udyam Nidhi Scheme
  • Annapurna Scheme
  • Udyogini Scheme
  • Bharatiya Mahila Bank Business Loan
  • Pradhan Mantri Rozgar Yojana

Security and Government Bonds

Did you know that your market investment can come in handy and act as a loan? If you have investments in the stock market, government bonds, or mutual funds, you can pledge them to make them act as a secured loan. So, you get lower interest rates, flexible repayment options, and a quicker turnaround time!

Gold Loan

No one does gold shopping better than an Indian woman, so why not use it to uplift your business? Gold loans are the quickest to process since India’s gold market is exponentially huge! Moreover, you won’t have to worry about monthly instalments as most gold loans have a repayment window of one year.

Benefits of Business Loans for Women in India

Women prefer personal loans to fund their ventures for the following reasons:

  • Low-interest Rates
  • No Collaterals
  • Adaptable
  • Convenient
  • 100% Profit Owner

Key Takeaway

Although women entrepreneurs face a hard time starting their business ventures, today, many strong females are already shattering the glass ceiling! In this male-ruled industry, where women are finding a space for themselves, personal loans come in handy to fund their financial expenses and help them turn their small venture into an empire.

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Tanvi Kaushik specializes in Content Marketing and works with the Digital Team at KreditBee - India's fastest personal loan platform where self-employed and salaried professionals can easily avail of personal loans in just a few minutes when in need of quick funds. Tanvi writes to-the-point articles on personal finance and budgeting which are truly appreciated by her readers. She is committed to making money matters easy to understand even for the layman. Her commitment to her work doesn't stop her from pursuing her hobbies of hiking, trekking and going on adventurous trips.
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