Business Loans for Women Entrepreneurs and Relevance of Credit Score

"Explore business loans for women entrepreneurs and understand the importance of credit scores in securing funding. Empower your business growth today."

Business Loans for Women Entrepreneurs

4 mins read

Published: 20 June 2024

Updated: 21 June 2024

Women have the in-built quality to manage things, they handle the house with full responsibility. Along with looking after the household chores women are coming up with different small and big ideas to run the business. Whether it's about starting a small business in spices, pickles, papads, or their salon, women have always shown growth. There are plenty of women who are looking forward to starting their business but stepping back just due to lack of funding. Funding is the basic requirement to start a business, but the question is where the funding can be gathered to fuel the business of these women. The answer is very simple, and the funding problem can be resolved just by a simple click i.e. apply online business loan, which will help the women to give financial support and start their dream business without any obstacles.

Women entrepreneurs need financial help and instant business loans to support their businesses in the best possible way.

Apply Business Loans Online for Women

When it is about to start or expand a business, access to enough findings is the first thing that is required. For women entrepreneurs in India, securing business loans can be a little bit challenging due to various economic factors. However, there are many financial institutions and schemes offered by the government that provide business loans specifically for women entrepreneurs.

Eligibility Criteria to Apply for Business Loan Online

Before you apply for a business loan online, it is important to check the eligibility criteria asked by the lender. The eligibility criteria for online business loans may vary depending on the lender, the nature, and the type of loan. There are following factors that are considered while looking at the eligibility of a borrower to apply for an online business loan.

1. Business Vintage

The lender may demand for the business to be operational for a certain number of years.

2. Annual Turnover

The lender generally wants the business to have a minimum annual turnover. Depending on the turnover you may choose the lender; NBFCs provide business loans at a minimum turnover of 50 lakhs.

3. Credit Score

The borrower's credit score plays a vital role in determining the tenure, loan amount, and interest rate of the business loan.

4. Collateral

Depending on the loan amount, the lender may ask for collateral as security.

Types of Business Loans

There are different types of instant business loans available for women entrepreneurs all over India depending on the factors mentioned above. Some of the few types of business loans are explained below:

1. Working Capital Loan

A Working Capital Loan is a type of business loan that you can utilize to cover expenses, manage cash flow, or make financial improvements to your business. A Working Capital Loan for businesses is meant to help you pay for a few things like inventory, materials, or payroll, which is needed to run your business smoothly.

2. Term Loan

Term loans are used to finance long-term investments such as purchasing equipment for business, supporting working capital needs, expanding the business, etc. The duration of a term loan varies by loan amount, interest rate, and the loan that you have chosen for the business.

3. Mudra Loan

This is a government scheme that provides loans up to Rs.10 lakh to micro and small enterprises.

The Pradhan Mantri Mudra Yojana was launched in 2015, this government scheme aims at providing loans up to Rs 10 lakh to small entrepreneurs. Mudra loan focuses more on workers and entrepreneurs including women entrepreneurs.

4. Business Overdraft

Business overdraft is a financial facility that provides customers with the benefit of withdrawing extra money from the account that is actually available, up to a certain pre-approved limit. The bank assesses the creditworthiness of the borrower and on that basis decides the maximum overdraft limit. 

What is the Minimum Credit Score to Get a Business Loan?

A credit score of 750 and above is usually asked by lenders to avail a business loan. It is advised to maintain a good credit history for ease of approval of business loans. A credit score tells your creditworthiness which helps the lender to believe that you can pay back the loan amount on time. Not paying the debt on time can degrade your credit score, so keep an eye on the repayment period and make the bills and installments on time.


Women entrepreneurs are also becoming an important part of building the nation's economy, they are coming up with different business models and showcasing their business talents in various sectors. So their initiation needs financial support, to support their business ideas, business loans have become so effective that they can expand their venture. Women can apply for business loan online and take advantage of the loan to get started with their business.

By understanding the loan options, eligibility criteria, and the importance of a good credit score, women entrepreneurs can enter the world of business financing more effectively with business loan support.

Also read: How can an Instant Business Loan Benefit your Business?

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