Small business loans for women - all you need to know

Apr 15, 2020

Small business loans for women - all you need to know

In today’s world, women-owned businesses are very important. They help build up the economy, increase employment rates, and offer equal and inclusive opportunities. These businesses can range from professions like parlours and home kitchens to startups and high-end boutiques. And with the increasing recognition of a woman’s importance in the growth of the economy, the number of opportunities has also increased.

But even with the rise of women-led businesses, there can be certain obstacles that get in the way of improving this further. Oftentimes, the biggest limitation can be access to capital. This challenge can be overcome with small business loans for women, which can be obtained from banks or other financial institutions. But even loans for women to start businesses can be costly as they may require higher credit scores for a good loan amount.

Gold loans for women-owned businesses

There is an increasing need for loans specifically for women, especially with gender norms being broken as more and more women enter the workforce. While there are a number of options of small business loans for women, applying for a gold loan is a convenient and affordable option as an alternative to traditional women’s startup business loans.

Accessibility of collateral

Women often tend to approach friends and family for business loans. In other cases, they offer collateral to a lender to receive a higher loan amount. This does not guarantee that the value of the asset being pledged will supply the borrower with the funds they need.

More importantly, offering collateral as security might not be a viable option for all. In such a situation, pledging gold becomes convenient. Gold is an asset that most households already possess, and is usually present in most homes. Using this as collateral will ensure that you make use of something you already own instead of approaching a third party for the same.

Higher credit/loan limit

In loans that are secured by collateral, the loan to value rate is decided by the value of the asset being offered as security. Collateral like a house, home equity, or a vehicle can vary. But in the case of gold loans, the collateral is always of high value.

This rate is fixed based on trade and the global economy, ensuring that you can trust the rates are stable and favourable. Even in times that the economy slows down, gold rates rise. This makes gold loans a prime option for women’s startup business loans since a high loan amount is always guaranteed.

Lower interest rates

Small business loans for women usually demand higher interest rates. But small businesses that are just getting started might not be able to afford this. This situation can become more pressing if the borrower defaults on payments, resulting in bigger losses.

Gold loans are secured with collateral, making them viable options for a small business loan for women. The low risk makes lenders more open to providing lower interest rates, and loans against gold have the lowest average in interest rates compared to other loan options.

Longer Flexible repayment tenure

The way funds are utilised can be crucial, especially in the early stages of growing a business. Often, loans are sanctioned to small businesses, but with a limited budget, it can become difficult to complete repayments on time.

Once again, owing to the fact that gold loans are secured with collateral, lenders offer flexible repayment schemes. And with a longer tenure, the repayment for every installment becomes lower. This enables small enterprises to allocate their funds towards their business needs instead of focusing on the loan repayment.

Minimal document work

Loans for women to start businesses usually require a long list of company papers. It can be difficult to gather and present these, as getting a hold of these documents can be time-consuming and may require you to visit different bureaucratic offices. Working to gather these while working towards meeting business timelines can become a hassle.

To avail a gold loan, the only documents required are the borrower’s KYC papers. This makes the process a lot easier as these are readily available, and it makes the verification process much quicker too. Furthermore, this allows the entire loan processing time to be cut down by half compared to other loans.

Quick loan disbursal

Business needs may be sensitive to time constraints, which makes loan processing and loan disbursal all the more important. However, most loans can take weeks to sanction the amount due to the lengthy credit checks and document work.

Gold loans work out great for this purpose because the processes are much faster. The loan amount is often transferred within 72 hours after the documents have been verified and the necessary procedures like gold valuation and pledge have been completed.

Rupeek gold loan solutions

Rupeek’s services and offerings are tailored to be the most affordable and convenient loan solutions in the market. Choosing to avail a loan against gold as a small business loan will guarantee you the highest loan value for your gold, lowest interest rates in the market, and instant loan transfer.

At Rupeek, we also respect and understand your privacy and time as a working woman. This is why our doorstep services are the most convenient option for you, so that you never have to deal with lengthy branch visits. Repayment is also made easier with our online payment portal which can be accessed on our website or app.

We also offer an overdraft facility with our product Rupeek Quick, which offers an instant credit line against gold as collateral. You simply deposit your gold and avail a loan anytime, whilst paying interest only on the loan amount used. This is extremely convenient for new businesses as you don’t have to worry about heavy payments. Get in touch with us today to fund your business needs!