Gone are the days when women where considered to be care takers of the house
. Women nowadays are at par with men in every field of life. One of the leading industries in the world is run by women. Thus financial aid for such people cannot be far behind.
Women business loans help the entrepreneur to get financial aid to help stabilize their business. The business can be a new or an existing one. The credit sanctioned can be used for any business or expansion related expenditure. It can be used to purchase new or used machinery.
The monetary aid available to these people is granted in the secured or unsecured form.
To avail of secured advances, the borrower will have to place a security of considerable value against the financed amount. This acts as a guarantee that the credit will be repaid. The borrower is offered an amount up to 100,000. The repayment period is flexible. The maximum repayment period is 25years. The lender decides the finance to be granted after checking the estimated market success of the business.
Women business loans are also granted in the
unsecured form. The borrower is not required to place any security for the credit advanced to him. The lender grants the money on the faith that the borrower will repay the amount on the due date. If the borrower fails to do so the lender cannot do anything. Thus the rate of interest charged is high to protect the interest of the lender in the event of default. The money advanced ranges from 1000 to 25000. The borrowed amount needs to be returned within a time period of 1 to 10 years.
To obtain credit the following two documents are mandatory;
a) Business profile document This contains the type of industry and the profit expected.
b) Loan request document - This contains the amount of credit required and the estimated repayment period.