Statistics show that only 14% of all entrepreneurs in India are women. These alarmingly low figures highlight how the business world is still an unexplored territory for many women, making it harder for them to set their foot in it. One of the toughest things faced by most entrepreneurs is finding the right financing for their ideas. It gets tougher for women, thanks to societal bias and lack of education and awareness. However, government schemes, along with the option of a business loan, have empowered many women to turn to the entrepreneurial route these days.
Here are some things that you need to know about business financing as a women entrepreneur:
- Maintain a good credit score
A good CIBIL score can open many doors for businesswomen, and similarly, a bad one can be detrimental to your growth. It is vital to keep a check on your credit rating and ensure it is always on the higher side. Credit scores are calculated out of a total of 900 points, and a score above 750 is generally considered satisfactory. Paying debts like loans and credit card bills on time can ensure that your score stays above the right level. The CIBIL score is also evaluated when you apply for business loan.
- Look for government schemes
The Government of India has introduced many finance schemes to aid women entrepreneurs. Programs like the Annapurna Scheme, Stree Shakti Package for Women Entrepreneurs, Mudra Yojana Scheme, Mahila Udyam Nidhi Scheme, Dena Shakti Scheme, and many more, have helped several women achieve their career goals. You too can benefit from one of these initiatives based on your area of work.
- Apply for an online business loan
A recommended idea to get started is to get a loan. Business loans can offer instant monetary relief and be used to fund several big and small expenses of a business. Whether you are launching your company or looking to expand it, an instant business loan can cover various expenses. Moreover, the convenient repayment options and well-structured tenures make it easy for you to settle the loan comfortably.
- Connect with other entrepreneurs
Networking can be an effective tool for businesses. Interacting with other businesswomen can help you immensely. People who have been down the same road can help you identify the right government scheme for your company, file a business loan application, and get in touch with possible investors. All these things will facilitate quicker business growth.
According to an article published in The Financial Express, running a business and finding the right financing can be tougher for women than it is for men. Sometimes lenders can ask for a male guarantor, and there will also be times when the market may not welcome women entrepreneurs in the right spirit. This makes it crucial to look for credible financial institutions. Tata Capital is one such company that offers several women-friendly credit options like a first time business loan. You can apply for a loan of up to Rs 75 lakhs at business loan interest rates starting from 19%.