With a rise in the number of start-ups in India, women entrepreneurs are also leading the way to significant business and economic growth in the country. They are becoming role models and building pathways for the next generation. To help businesswomen achieve sustainable growth and development, financial institutions and government offer a number of options specially designed to empower them and provide financial assistance.

MUDRA loan for women

The MUDRA (Micro Units Development & Refinancing Agency) loan scheme is offered under Pradhan Mantri Mudra Yojana. To promote and support women entrepreneurs, the government has launched a special business loan program under the MUDRA loan scheme specifically for women. Under this scheme, NBFCs, banks and other financial institutions have been asked by the government to provide funds to women at reduced interest rates.

Types of MUDRA loan yojana for women:

Shishu Loan: This scheme enables entrepreneurs to get loans of up to ₹ 50,000

Kishor Loan: Under this scheme, entrepreneurs can get loans ranging from ₹ 50,000 to ₹ 5,00,000.

Tarun Loan: Businesswomen can obtain loan amounts ranging from ₹ 5,00,001 to ₹ 10,00,000 under this scheme.

Women between the ages of 18 and 65 can apply for this scheme and use the loan to start a non-farm, non-corporate business such as tailoring, spa services, beauty salons, etc. If you fit this criteria, apply for a business loan now!

Udyogini Yojana

This scheme is developed by the Women Development Corporation and focuses on helping women below the poverty line to act on their aspirations and become independent. This scheme provides small business loans of up to ₹ 3 Lakhs. In this way, the Udyogini Scheme helps build micro-enterprises that, in turn, support the country’s economy. Interest-free loans are also available for women who want to start a small business in the agricultural sector under this scheme.

Women aged between 18 to 55 years can apply under this scheme for micro-businesses like bakeries, groceries, catering services, etc.

Annapurna Scheme

Annapurna Scheme provides business loans of up to ₹ 50,000 to women in India and helps them start their own catering business from home. The amount helps them to get all the equipment and utensils required. This scheme is offered by State Bank of India and Bharatiya Mahila Bank. The Government has waived off the first month’s EMI for loans under this scheme and the repayment period is 3 years with no collateral required.

Applicants between the ages of 18 and 60 can benefit from this scheme if they are starting tiffin services or food processing/venting units.

Stree Shakti Yojana

The Stree Shakti Yojana empowers self-employed women by providing business loans of up to ₹5 Lakh. A woman applicant should hold majority ownership in the business for which the loan is being taken. These women should also be enrolled under the state’s Entrepreneurship Development Programs. This scheme is available in all branches of the State Bank of India and a concession of 0.5% is given on loans above ₹ 2 Lakhs.

Apart from loans for women to start a business, banks and financial institutions also encourage women entrepreneurs by providing support in the form of loans against securities. These loans are available at competitive interest rates and flexible repayment options.

Personal Loans can also be availed based on the financial position of the applicant. For housewives, the option to add a co-applicant is available.

Conclusion:

The availability of finance also provides confidence to businesswomen who can take the much-needed leap and build an independent future for themselves.

We, at IndusInd Bank, salute such courageous women and urge them to join our community where we offer carefully curated plans to help them at each step of their entrepreneurial journey.

IndusWE community – https://www.indusind.bank.in/in/en/business/induswe/about-induswe.html

If you have a business for more than 2 years, apply for quick business loans at competitive rates and enjoy a hassle-free experience.

Recommended Read: https://www.indusind.bank.in/iblogs/categories/msme/a-guide-to-obtaining-an-msme-working-capital-loan-in-india/

Disclaimer:

The information provided in this article is generic in nature and for informational purposes only. It is not a substitute for specific advice in your own circumstances. Hence, you are advised to consult your financial advisor before making any financial decision. IndusInd Bank Limited (IBL) does not influence the views of the author in any way. IBL and the author shall not be responsible for any direct/indirect loss or liability incurred by the reader for taking any financial decisions based on the contents and information.

Consider a scenario where you run a well-established restaurant business in Mumbai and wish to expand to other cities. Looking at your balance sheet, you might realise that your cash reserves and other assets are not enough to fund the expansion. In this situation, you could consider applying for a business loan. But how? This article gives a flavour of the steps involved.

How Do Business Loans Work?

Business loans can be acquired for a variety of reasons such as funding an expansion, purchasing equipment, meeting working capital requirements, and buying commercial property.

Business loans can be in the form of revolving credit or installment loans. In installment loans, you are expected to repay in installments by paying a fixed amount every month which is determined at the time of availing the loan. In revolving credit, you are allowed to borrow up to a certain limit. You can either repay this every month or roll it over to the next month. Meanwhile, you can borrow again as long as it is capped at the limit set.

Secured loans are backed by collateral such as property or shares; if you can’t repay, the bank takes the collateral. Unsecured loans, without collateral, are riskier for banks, leading to higher interest rates.

Also Read: How Easy Is It to Get an Unsecured Business Loan?

How to Get a Business Loan: Important Steps –

Here are some steps to follow when applying for new business loans:

Amount needed: You first need to decide how much you wish to borrow. This will require much thinking and deeper analysis of your business goals, the strategies involved in achieving these goals, and how you accordingly intend to use the funds borrowed.

Type of loan: You then need to decide the type of loan that will best match your requirements. In India, these are the types of business loans typically offered:

• Term or bank loans for business: These can be both long-term and short-term. Long-term bank loans for business are typically of a longer duration such as five years or more, while short-term loans tend to be for 12 months or less.
  
• Working capital loans: These loans are used for the daily running of the business and tend to be short-term in nature. These could range from anywhere between six and 24 months.
  
• Accounts receivable financing: Here, companies or businesses can get advance payments on their outstanding invoices.
  
• Letters of Credit: Useful in international trade, a letter of credit is a guarantee by the foreign buyer’s bank that payments will be made as soon as the goods are exported by the exporter.
  
• Overdraft Facility: In this, a business is allowed to withdraw cash from the business account even when the balance is zero. There exists a sanctioned limit that depends upon the credit history and cash flows of the business.
  
• Equipment Funding: As the name suggests, businesses can avail this loan for purchasing new equipment or replacing the existing one.

Credit Score: The credit history of your business influences the credit score. A healthy credit score is a barometer of a borrower’s financial responsibility and creditworthiness.

Required documents: Gather necessary documents for your loan application, including profit and loss statements, balance sheets, cash flow statements, tax returns, business licenses, and five-year financial projections, among others.

Assess your collateral: Putting up collateral can increase your chances of getting a business loan because secured loans minimise risks for a bank. Assets that can be put up for collateral include property, equipment, machinery, and accounts receivable.

Look around: While you may already have a business bank from whom you can borrow, it also makes sense to consider other lenders. Compare loans offered by different lenders based on the best rates offered and whether they meet your requirements and decide accordingly.

To conclude –

There is much work involved in getting a business loan. But a clear thought-out plan, discipline, the right documents, and financials can improve your business loan eligibility.

Disclaimer: The information provided in this article is generic in nature and for informational purposes only. It is not a substitute for specific advice in your own circumstances. Hence, you are advised to consult your financial advisor before making any financial decision. IndusInd Bank Limited (IBL) does not influence the views of the author in any way. IBL and the author shall not be responsible for any direct/indirect loss or liability incurred by the reader for taking any financial decisions based on the contents and information.

Business loans are often the fuel that help unlock growth opportunities for a business. It is common to take on debt to meet business needs as they arise or when you are creating something with a long-term vision. You can avail different types of business loans as well, based on why you are taking a loan, the speed of disbursal, and the amount required among others. Each type of business loan has its own use cases and features.

What Is A Short Term Business Loan?

You can think of short term business loans to meet the smaller or operational needs of your business. These can be unexpected expenses and short-term opportunities among others. There is often an overlap in such loans, such as quick business loans. Typically, this can be considered a quick business loan for which the repayment duration is short.

If your business is more than 24 months old, explore IndusInd Bank Quick Business Loan here.

What Is A Long Term Business Loan?

A long term business loan is usually for a large principal amount paid back over a longer time frame. The reasons for a long term business loan can vary – although usually it is a tool for business capacity building. It allows you to buy the tools or hire the people who create an infrastructure for your business needs to grow a vision or a plan. The long repayment period also enables you to sustain running your business through its different phases of expansion. These differences make up the contrast between long term and short term business loans.

Which Type Of Business Loan Is Right For You?

The key aspects of choosing a business loan depends on different factors. These include:

1. The reason behind your business loan

Typically a small business loan is a short-term solution for a temporary situation – like meeting one-off or unexpected expenses while maintaining a smooth cash flow. A short term business loan is a finance tool that lets you solve the problem at your own terms. This way you can focus on an achievable and long-term solution without cash-related business urgency.

2. Your window of repayment

While a typical short term business loan is usually for a small amount, there can be other reasons to extend the repayment period for such a loan. One might want to maintain a stable cash flow, adding flexibility to business operations, or even enjoy ongoing business loan tax benefits. However, the longer a business loan is for, the higher the cost of interest in its repayment.

3. The amount of principal

Typical business loans for small amounts are straightforward to pay back quickly – usually within a year or two. However, medium or larger amounts are better paid off over longer amounts of time. At any business size, a loan of ₹2 lac is much easier to pay off soon compared to a loan of ₹2 crore.

Indicative Table: Business Expenses & Loans

Conclusion

It is convenient and useful to take a business loan. It is also common to receive a quick business loan online. A short-term business loan is a helpful tool for managing cash flow, participating in opportunities, or meeting unexpected expenses. You can consider taking a long-term business loan for plan-based building development or capability expansion. Activities like beginning a complementary business division or buying a factory or warehouse are best financed by long-term loans.

Explore how to get a small business loan here.

Disclaimer: The information provided in this article is generic in nature and for informational purposes only. It is not a substitute for specific advice in your own circumstances. Hence, you are advised to consult your financial advisor before making any financial decision. IndusInd Bank Limited (IBL) does not influence the views of the author in any way. IBL and the author shall not be responsible for any direct/indirect loss or liability incurred by the reader for taking any financial decisions based on the contents and information.

You may have various income sources; is your own business one of them? While you may be sure of your capacity to generate unique ideas, create a sound plan, and work hard to establish your business, the huge amount of money required as initial capital may discourage you. What if you could start your own business without an investment? There are several no-investment business ideas which can help you achieve your entrepreneurial aspirations.

Let’s take a look at the contemporary zero investment business ideas:

1. Blogging: You can start a blog with no financial investment at all. All you need to do is find your niche which imbibes your passion and has a demand. Finance, travel, technology and food are some popular genres. You may use free blogging platforms to start with.

Your revenue will depend on the quality of your content and the traffic to your blogs. You may earn from:

• Advertisements
• Sponsorship
• Affiliate marketing
• Promoted content, etc.
• Online Tutoring: If you have subject expertise and a knack for teaching, this is a no- investment business idea for you. Use platforms like Microsoft Teams, Zoom and Google Meet to host classes for online tutoring.

You may even scale your tutorial business up in the future by applying for a business loan and opening a physical tutorial centre with other teachers.

• Freelance Writing: This is one of the best ideas for a business without an investment if you write well. Having domain knowledge is an added advantage. You may try copywriting, creation of SEO content or blog writing on free platforms.
  
  Also read: Why Current Account for Freelancers is a must?
  
• Content Creating for YouTube:
  Content creation and vlogging involves understanding the topics your audience may be interested in and working on those. Incorporate some unique features to attract viewers. Food, Travel, Cars and Bikes are popular topics.

You may earn revenue through YouTube’s partner program as per views on your videos:

• Minimum 1000 views – ₹ 53.46 per 1000 views.
• Channels must have 4000 hours watched and also 1000 subscribers in the last 12 months.

You need to use Facebook and Instagram to attract cross-platform viewers.

When you scale up content creation, you may need to buy specialised equipment or hire professionals to shoot or edit. Apply for IndusInd Bank’s quick business loan to help you with finances, if your business has crossed 24 months since its inception.

Also read: How to choose the Ideal current Accounts For Freelancers and Small Scale Businesses?

• Business Consulting: If you are social media savvy, you may help businesses optimise their social media presence through paid consulting. You may also help a business enhance its visual identity by designing its website, branding and logo.
  
• Affiliate Marketing and Dropshipping: You can also start businesses in affiliate marketing by earning referral sales based on your promotion of products and services. In dropshipping you tie up with a supplier who will fulfil your, mainly e-commerce orders.

Click here to open an IndusInd Bank Current Account for your freelance business. Open your account online if you don’t have time to visit the bank.

• Personal Fitness Training:
  Cash in on the global trend of fitness and health and offer online yoga sessions, advise on diets and create personalised plans. Take your business to the next level by opening a gym or fitness centre.
  
• Event Planning:
  If you enjoy interacting with people and are good at organising and paying attention to details, you may start the business of event planning. You start small, with birthday and anniversary parties, and move on to wedding planning and corporate events. You may apply for IndusInd Bank’s quick business loan to set up office premises later, once your business is two years old at least.

Conclusion

As you have seen you may set up your own business without investment. Also, in future, when you need to scale up, after two years in the business, you may avail IndusInd Bank Business Loans.

Disclaimer: The information provided in this article is generic in nature and for informational purposes only. It is not a substitute for specific advice in your own circumstances. Hence, you are advised to consult your financial advisor before making any financial decision. IndusInd Bank Limited (IBL) does not influence the views of the author in any way. IBL and the author shall not be responsible for any direct/indirect loss or liability incurred by the reader for taking any financial decisions based on the contents and information.

Are you an entrepreneur aiming to scale your business while looking for ways to optimise your financial resources? You will find several government business loan schemes in the market tailored to support entrepreneurs like you in attaining your financial goals. These schemes often come with favourable terms making it easier for you to manage your cash flow. By leveraging these financial loan schemes, you can focus on growing your business and achieving long-term success.

Let’s dive into some of the top government business loan schemes that can help you take your business to the next level.

1)      MSME Loan Scheme in 59 Minutes

The MSME Loan Scheme in 59 Minutes is a transformative government business loan scheme designed particularly for Micro, Small, and Medium Enterprises (MSMEs). Introduced to streamline access to funds, this loan scheme allows both new and prevailing businesses to secure loans of up to₹1 crore with remarkable speed.

What sets this scheme apart is its efficient loan processing system. Loan processing for government loans can be time-consuming, but with this loan option, the whole procedure takes just eight to twelve days. Even more impressive, businesses get an approval or disapproval decision within 59 minutes – hence the name. This makes it an ideal choice for entrepreneurs looking for quick business loans.

2)      Pradhan Mantri Mudra Yojana (PMMY)

The PMMY is another government loan scheme aimed at empowering small businesses, particularly those in the service and trading sectors. This scheme is advantageous for women entrepreneurs who are looking to begin or expand their businesses without the burden of collateral.

MUDRA, or Micro Units Development and Refinance Agency Ltd., serves as a backbone for this scheme by offering refinancing support to banks and Non-Banking Financial Companies (NBFCs) that offer credit to small businesses.

The scheme offers three tiers of loans under the MUDRA umbrella. These include Shishu Loan of up to ₹50,000, Kishor Loan ranging between ₹50,000 and ₹5 lakh, and Tarun Loan ranging between ₹5 lakh and ₹10 lakh.

This structure enables businesses to select the loan amount and terms that match their needs best, making PMMY a unique option among government loans for new businesses.

3)      National Small Industries Corporation (NSIC)

NSIC is a major government initiative that supports entrepreneurs in distinct business aspects such as marketing, technology, and finance. Recognised as one of the best government loan schemes, NSIC offers holistic financial support through two major schemes –

• Marketing Support Scheme

This scheme is tailored to help businesses enhance their market presence. Through Tender Marketing and Consortia schemes, businesses get marketing help that can considerably boost their market reach and promotion efforts.

• Credit Support Scheme

This scheme offers the required financial support for businesses to get raw materials, finance operations, and expand their marketing efforts.

These schemes under NSIC help businesses not only to survive but also thrive in a competitive market environment.

4)      Credit-Linked Capital Subsidy Scheme (CLCSS)

The CLCSS is a specialised government subsidy loan targeted at fostering technological advancement in industries. Whether it is upgrading manufacturing processes, enhancing supply chain management, or improving marketing strategies, this scheme provides a 15% upfront capital subsidy to businesses.

This government loan scheme is open to a wide range of business entities, including private and public limited companies, partnership firms, sole proprietorships, and cooperative companies. The 15% capital subsidy makes CLCSS a top choice for businesses looking to innovate and remain ahead in the market.

What to do When Your Business Needs Urgent Funds

If you require a quick business loan from a reliable financial institution, IndusInd Bank offers an efficient and convenient option. Here are the key benefits of IndusInd Bank’s Quick Business Loan:

IndusInd Bank’s Quick Business Loans are designed to meet the immediate financial needs of businesses without the hassle of opening a new current account or needing extensive documentation. The digital process ensures a smooth and swift experience, making it simpler for businesses to get hold of the funds they require.

Also Read: How Do Business Loans Work?

Ending Note

Government business loan schemes offer a wide range of options for entrepreneurs looking to begin or expand their businesses. From the quick and efficient MSME Loan Scheme in 59 Minutes to the specialised support offered by CLCSS, there is a government loan scheme tailored to meet your specific requirements.

For those in need of quick business loans, IndusInd Bank offers a digital, fast, and customer-friendly solution, ensuring that your business continues to grow without financial stress.

So, are you ready to take the next step? Apply for a business loan today and turn your business dreams into reality!

Disclaimer: The information provided in this article is generic in nature and for informational purposes only. It is not a substitute for specific advice in your own circumstances. Hence, you are advised to consult your financial advisor before making any financial decision. IndusInd Bank Limited (IBL) does not influence the views of the author in any way. IBL and the author shall not be responsible for any direct/indirect loss or liability incurred by the reader for making any financial decisions based on the contents and information.