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Don’t Go Panic When No One is Funding Your Start-up

Unlike the olden days, a lot of housewives these days are smart, ambitious and well-educated to pursue their dreams. In addition to managing the family and the household, housewives are also keen on exploring various business opportunities. While some women are comfortable with getting a day job and working for companies and organisations, there are […]

Unlike the olden days, a lot of housewives these days are smart, ambitious and well-educated to pursue their dreams. In addition to managing the family and the household, housewives are also keen on exploring various business opportunities. While some women are comfortable with getting a day job and working for companies and organisations, there are others who wish to start their own business and be their own bosses.

Getting funds for your start up is difficult but you can have other options if your are confident on your idea.

It is relatively easy to find a job that matches your skills, but starting a business is relatively harder. However, housewives who are confident enough to start their own business now have access to the finances they would not have had, let’s say 15-20 years back. Most lenders require the borrower to have a steady source of income, but the eligibility criteria for housewives are less stringent to help them follow their dreams. 

Alternatives to Get Easy Funding

The following are a few effective tips to help housewives gain easy access to finances:

Go for secured loans 

The easiest way to get a loan when you are unemployed is to go for a secured loan. Secured loans are basically loans wherein you can avail a certain amount of money from a lender, and in exchange, you will have to pledge an asset to the lender until the repayment of the loan is complete. In case you fail to repay the amount you borrow, the asset you pledge can be sold by the lender in an effort to get their money back. The assets you can pledge under a secured loan include real estate, home equity, jewellery, shares, paper investments, personal vehicle, etc. If you are a housewife who needs financing to start a business, pledging an asset and getting a secured loan is your easiest option.  

Adding a co-applicant  

Adding an employed co-applicant is another easy way to get access to funds through a personal loan. If you have an earning husband or father, you can avail a joint personal loan with them. Since the loan amount offered by lenders is dependent on the co-applicant’s income, getting a loan should not be too difficult. Moreover, having a co-applicant means that they are equally responsible for ensuring that the repayment is done on time, thereby making it easy for the bank to view you as a trustworthy customer. 

Adding a grantor 

In case you are certain that your business will generate revenue and you don’t need any financial support to repay the loan, you can go for a grantor rather than adding a co-applicant. Grantors are basically individuals who are liable to repay the loan in case you default on it. Grantors with high credit scores in addition to good credit history can help you get a personal loan for your business with relative ease.  


Documents Required You May Need

If you are a housewife looking for a personal loan, the following are the documents you will have to submit to the lender:  

  • Proof of identity: Proof of identity can include identification issued by the government, such as driving license, ration card, Aadhaar card, passport, birth certificate, etc. 
  • Age proof: Age proof documents can be any ID issued by the government and containing your date of birth.  
  • Employment verification: If you are a housewife looking for a personal loan to set up your business, you will have to submit the registration documents and professional certificate. In case you have not registered your business at the time of applying for a loan, you will have to submit a thorough business plan that explains all the details about your business. 
  • Income proof: If you are adding a co-applicant to avail a personal loan, you will have to submit proof showing that they have stable employment along with their salary slips.  

Top 5 Funding Options for Women Entrepreneurs

The following are the five best business loan options for housewives: 

1. Central Bank of India – Cent Kalyani Scheme 

Women entrepreneurs who seek a personal loan to start their own business can avail the Cent Kalyani Scheme offered by the Central Bank of India. This loan is available to those who are into cottage industries, MSMEs, farming, retailing, etc. The loan is offered to borrowers to help them meet capital expenses like the purchase of equipment, plant and machinery, etc., and to meet daily expenses. The loan has no processing fees and the maximum amount you can borrow through the Cent Kalyani Scheme is Rs.100 lakh. 

2. State Bank of India – Stree Shakti Package 

The State Bank of India offers the Stree Shakti Package that is designed especially for women entrepreneurs. The maximum amount you can borrow through this scheme is Rs.5 lakh, making it ideal for small business owners. The interest rate applicable to the loan is also relatively low, but the loan can only be availed by women who have more than 51% stake in the business for which the loan is sought. 

3. Bharatiya Mahila Bank – Annapurna and Shringaar 

Bharatiya Mahila Bank has designed multiple loans to help women entrepreneurs start and manage their own businesses. Two of the best schemes offered by the bank include Annapurna and Shringaar. The Annapurna scheme offers financial help to women entrepreneurs who wish to establish their own food catering business, while the Shringaar scheme is ideal for women who wish to establish their own beauty parlours.  

4. Dena Bank – Shakti Scheme 

Dena Bank has come up with the Shakti Scheme which helps women entrepreneurs venture into business opportunities in a variety of sectors such as retail trade, housing, education, agriculture and allied activities, micro credit, service, manufacturing, etc. The maximum amount you can borrow will differ from lender to lender and the sector in which your business will be operating.  

5. Syndicate Bank – Synd Mahila Shakthi  

The Synd Mahila Shakthi scheme offered by Syndicate Bank is designed for new as well as existing women entrepreneurs. The scheme comes with two options – a term loan with a tenure of up to 10 years, and a cash credit to meet working capital requirements. The loan is available to women entrepreneurs who have a minimum of 50% stake in the business which requires financing.  

If you are a housewife looking to start your own business, you are in a great place as there are several banks and financial institutions that can help turn your dreams into reality. Make sure you compare as many loan options as possible in order to find the one that will best suit your business requirements.  

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