In recent years, many new-age female entrepreneurs have disrupted the highly competitive business world. Today, more than 126 million women are spearheading businesses on the global level. India is also not behind having around 8 million women entrepreneurs.
Image Source: Aditya Birla Capital Business Loan
With new ideas and better financing options coming their way, women entrepreneurs are taking the step ahead and expanding their business on a large scale. These brilliant female minds are not only making a mark for themselves but are also proving time and again that their dreams are meant to soar higher than ever.
In case you are planning to expand your business, here are some financial options that can help you establish your business for the long run.
Friends & Family
Getting financial support from a known person, especially your family helps you stay away from the pressure to please shareholders. It also allows you to save money by cutting down the interest rates. However, friends and family usually tend to provide smaller loan amounts. Therefore, you need to assess your financial requirements and draw a contract describing the details of the funds to avoid any kind of future conflicts and misunderstandings.
Government Schemes
The government of India offers various financial schemes to help entrepreneurs, especially women in expanding their business. Thus, when thinking about collecting finance, do consider such schemes. Some of the most popular schemes include:
- The Credit Guarantee Fund Scheme for Micro and Small Enterprises (CGS)
The Government of India launched CGS in collaboration with Small Industries Development Bank of India. Under this scheme, you can borrow around 100 lakhs if you are able to qualify its eligibility.
- MUDRA Loan Scheme
Micro Units Development and Refinance Agency Ltd. or MUDRA is a financial institution set up by the Indian Government. The scheme provides loans up to 10 lakhs to the non-corporate, non-farm small/micro enterprises under Pradhan Mantri MUDRA Yojana (PMMY).
- Stand Up India
This one is a special scheme for women, SCs and STs that provides them financial assistance for boosting their business’ growth. You can get loans worth Rs. 10 lakh and up to Rs. 1 crore upon fulfilling the eligibility criteria.
Peer-to-Peer Lending
Also called P2P lending, this funding option allows you to borrow and lend money without using any of the official financial institutions. It is also famous as social lending or crowdlending.
In India, P2P lending caught momentum after 2014. Later in 2017, RBI came out with the decision that P2P lending service providers will be registered as non-banking financial companies (NBFCs) and rolled out some guidelines about P2P lending platforms. Today, there are various online NBFCs that reach out to entrepreneurs who are looking to expand their business. If you are a tech-savvy entrepreneur, crowdfunding can be extremely helpful in generating lakhs to boost your business.
Business Loan
Earlier, many entrepreneurs tried their best to avoid taking a business loan. However, owing to the introduction of hassle-free and easy loan processes, taking a business loan has become one of the preferable ways of funding business expansion.
Financial institutions like ABFL Direct provide flexible options for availing business loans. Some of the highlights are:
- No Need to Visit Branch Office
- Minimum Paperwork
- Online Application Submission
- Instant Online Approval
- No Guarantee or Security Required
The requirements are also less; you just need to provide your PAN number, Aadhar number, business proof and current year bank statement.
Bottom Line
“Keep your mind open to opportunities. They are closer than you think.”
Whoever said these words understood the power of optimism and dedication. New opportunities are no less than doors to greater success. The business world too thrives on such ideas. If you wish to become a magnate, you need to take productive steps further to reach new opportunities. And now that we have told you about gathering finance, take the chance and grow your business soon!
