Five Key Challenges Faced by India’s Women Entrepreneurs

Every day, the age-old stereotypes of India’s patriarchal society are being broken by enterprising women artists, business leaders and political personalities. The newfound institutional and social support has enabled aspiring women to come out and challenge men in almost every field. The small and medium enterprise industry is no different and many such businesses, helmed by women entrepreneurs, are leading innovation and giving stiff competition to their industry counterparts.

However, India is still in early days of a social revolution that demands equal status for all genders. A women entrepreneur in India faces many challenges in starting and continuing her journey. In today’s post, we discuss the five key problems faced by business women in India.

Social Acceptance for Working Women

While India has become more open to working women in recent years, in most cases the acceptability still comes with a caveat. A working woman is expected to balance her time between household chores and her professional work in most families. This may not be a key challenge for educated young women in cities starting their own business but definitely pose a challenge for married women living in urban or semi-urban areas who discover their calling later in life.

Marketing and Promoting their Enterprise

Another key challenge faced by women entrepreneurs is marketing and promotion of their startup business or SME. The matter is further complicated by the fact that online marketing and promotion has taken center stage in recent years. Since, IT is a male dominated field, women entrepreneurs often face competitive disadvantage when hiring online promoters and agencies to market their business.

Problems in Resource Procurement

Be it leasing a space for running their business or making a deal for raw material supplies, most women entrepreneurs face heavy disadvantage and distrust when starting on their own. Once again, it’s the prevailing social bias and general misconceptions about work ethics of women that hinder their access to raw materials, labor and machinery. Therefore, in most cases, women entrepreneurs end up paying above the base rates for procuring operational resources and supply chain contracts.

Getting Funding for SMEs

A major challenge faced by women entrepreneurs is securing funding for their small business. Here the issue is two-fold. The traditional banking system is still run by India’s lumbering bureaucratic system which is slow, biased and male dominated. This makes it very hard for women entrepreneurs to secure funding from a bank as the ultimate power for approving a business loan rests with the bank officials. On the other hand, Angel investors and venture capitalists who fund startups and promising SMEs often balk at working with women CEDs and business owners. Even if they do agree to fund a small business run by a woman, they often try to take control of the company by creating proxy power centers in the company.

A Patriarchal Social Order

As a whole this article may seem like a rant about women entrepreneurs not getting their due recognition because of the men. Well, it is the truth of the day. The key challenge faced by women all over the world and especially in patriarchal societies like India is the dominance of men. Women entrepreneurs face a lot of gender-based discrimination and harassment while working their way to success and these are not limited to the points mentioned above. Therefore, the existence of a biased social order is, without doubt, the biggest challenge faced by working women.

Our Vision for Empowering Women Entrepreneurs

At Lendingkart Finance, we believe in equality and adhere to the ethos defined in the constitution of India. Ensuring safe working environment for women and empowering them is a part of our vision and mission. One of the main reasons why women in patriarchal societies lag behind men is due to the lack of financial freedom. Here, at Lendingkart, we try to rectify that with our unbiased financial support system for small businesses which relies on business performance rather than social bias for granting small business loans.

We have an online business loan application process which analyzes your business for performance and financial stability and gives instant loan quotes, regardless of your gender. To simplify matters further, we have kept the documentation requirements to bare minimum. Once again, document submission is also done online and our system allows you to track your loan application in real-time as we verify the information provided by you.

If you are a woman entrepreneur looking for quick business finance to meet your working capital requirements or business expansion, Lendingkart can offer you a small business loan within 3-days of application. Furthermore, our unsecured business loans come with lower interest rates than many of the traditional banks and lending institutions out there. We also offer flexible repayment options such as monthly or bi-weekly EMIs that allow you to repay your loans easily.

Lastly, a relationship with Lendingkart Finance also gives you the opportunity to connect and network with like-minded SMEs and startups to grow your small business.

Concluding Thoughts

The business scene is still a tough place for women in India, but despite its hardships, enterprising women continue to find new ways to beat the odds placed against them. For the most part it is their own will power and vision that makes it possible for them to overcome the social and professional challenges; and in a small part it is the help from a younger, more open and pragmatic social and business order.

Reasons why Unsecured Business Loans have Become Popular in India

A lack of adequate working capital can hinder the daily operations of your business, threatening both short-term and long-term growth. Seeking help from a traditional lender, like a bank or financial institution, comes at a cost. These institutions seek guarantee for their money and demand a valuable asset to be put up as collateral for the money they lend. If your business is already running a risk of going into loss, putting a valuable asset hostage is not going to help your cause, and that’s where an unsecured business loan comes into the picture.

Unsecured business loans are short-term small ticket loans which help you take care of routine expenditure, such as asset maintenance, vendor payments and raw material purchases. The best thing about these small business loans is that these loans are offered without any collateral. Apart from using these loans for working capital management, you can also utilise the loan funds for business expansion, however the small ticket size means these loans are best used for immediate expenses that help your business return profits.

Here are top reasons why small business owners in India are opting for unsecured business loans from NBFCs like Lendingkart over secured business loans from banks.

Helps overcome temporary business disruptions

A small business owner faces many challenges in today’s rapidly changing marketplace. Unsecured working capital loans give confidence to a business owner facing hard-times due to temporary disruptions in the market, take for example the two recent cases of demonetization and GST implementation. By the time these policy decisions were streamlined, they had already caused a lot of financial turmoil for small business owners. Unsecured small business loans played an important role in stabilizing the market by giving business owners access to funds for working capital.

Faster loan approval and quick disbursal of funds

A signature feature of unsecured business loans, offered by NBFCs like Lendingkart Finance, is that they are exclusively designed for the needs of small and medium sized businesses. Often, a small business owner needs quick access to funds to benefit from a new opportunity or to tackle immediate financial requirements. A traditional bank loan can take up to 10 days to get approved, hence defeating the purpose. In such cases, unsecured business loans come to the rescue with their faster approval times and quick disbursal of funds. Lendingkart offers quick business loans with disbursal time as low as 72 hours.

Flexible repayment options

A small business relies on invoice clearances to maintain its cash flow and profits. If a business gets most of its invoice payments after the first or second week of a month, it may struggle to keep up with the monthly payment schedule of a secured business loan which has due date early in the month. Unsecured loans from NBFCs like Lendingkart come with flexible EMI options, letting business owners choose an EMI schedule that is in sync with their business earnings.

Business friendly terms and conditions

Unsecured business loans come with business-friendly terms and provisions, such as low processing fees and pre-payment charges, auto-renewal of loan amount upon repayment, and no-hidden costs. Hence, making these loans attractive for small business owners looking for quick and convenient finance.

At Lendingkart Finance, we are constantly working towards providing small and medium business owners quick business loans to help them focus on growth and become profitable as soon as possible. To know more about Lendingkart business loans, visit our homepage or download the Lendingkart Instant Business Loans App from Google Play Store now.

Why Online Lenders are a Better Choice

Online Lenders – The Better Choice

Small businesses are increasingly moving towards online business loans and finance options for expanding their operations. Online lenders offer several benefits over financing from commercial banks, such as Flexi EMIs and quick short-ticket finance. This has made these non-banking financial institutions the choice of modern MSMEs.

For example, today, non-banking financial companies like Lendingkart Finance are disbursing working capital loans and unsecured business loans across the country whereas banks are limiting their commercial lending activities.

Here are the reasons why you should apply for a business loan from an NBFC –

Quick Turnaround Time

The one element that defines importance of finance is its timely availability. If you fail to get the requisite funds within the time frame available to you, either the opportunity will be lost or the same activity will cost you more.

Since a majority of small business owners are applying with them, banks take their own time in scrutinizing business loan applications. Thus, the process of loan approvals is slow. NBFCs, on the other hand, specifically cater to the MSME finance. Therefore, they are prompt in completing documentation, verification and disbursals.

E.g., Lendingkart Finance promises loan amount disbursal within 72 hours of documentation.

Completely Online Process

The reason why an NBFC like Lendingkart can approve loans faster is the online only loan application process of the company.

Every modern business has access to digital copies of requisite loan verification documents such as PAN, Aadhar Card, Bank Statements and ITR Certifications. An online lender can thus quickly verify the statutory status of your enterprise and disburse loans where traditional banks continue to struggle with filing and manual paperwork.

Minimal Documentation Required

In an online process, the lender can verify your business and personal information through government’s online portals, hence there is no need for excessive paperwork and documents to be submitted. For example, Lendingkart offers business loans by verifying only the essential documents for identity, address, incorporation and tax compliance of your enterprise.

Flexible Payments and More

The completely online business loan process allows lenders to cut costs associated with manual work, and they are more than happy to pass you the benefits. So, expect lower business loan interest rates, flexible EMI options and reduced processing charges when you get a business loan from an online lender like Lendingkart Finance.

If you are planning a business expansion soon or want to streamline your daily operations with a working capital loan, visit our website; www.lendingkart.com, and sign up for a quick quote.

Business Loan Index – What You Need to Know

Business Loan Index – Terms used by Lenders

The rapid growth of MSME sector in India means there is a lot of financial lending activity going on right now. While applying for these unsecured business loans and working capital loans, entrepreneurs are often left asking for explanation of certain banking terms used by the lenders.

In this post, we are covering the commonly used terms by an online lender or an offline commercial institution, when granting business loans. An understanding of these terms will not only help you make an informed decision in the future but will also help you get loan approvals faster, as you explain your business loan preferences to the lender from the very outset.

Fixed Obligations to Income Ratio (FOIR)

The cumulative total of instalments of loans already availed by you and still due in relation to your income.

Annual Reducing Interest Rates

The principal amount on which you are paying interest is reduced at the end of every year.

Monthly Reducing Interest Rates

The principal amount on which you are paying interest is reduced at the end of every month.

Daily Reducing Interest Rates

The principal amount on which you are paying interest is reduced at the end of every day.

*The EMI you pay for a daily reducing rate is less than the one you will pay under a monthly reducing rate. Similarly, annual reducing rates will have the highest EMI.

 

Amortization Schedule

A monthly installment has 2 components; the Interest component and the Principal. Amortization schedule shows the amount of interest and principal you will be repaying with each payment.

Prepayment

It means making an early repayment of the loan to reduce the tenure as well as the interest of the loan. Non-banking financial companies like Lendingkart, do not charge pre-closure fees.

EMI

An equated monthly installment is a fixed payment from the borrower to a lender on a specified date of each calendar month. EMIs are used to pay off both interest and principal (see Amortisation Schedule).

If you are looking for a quick business loan, visit us at www.lendingkart.com or download our app on your smartphone.