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February 28, 2021

4 ways women entrepreneurs can deal with financial constraints

    • February 28, 2021
    • By Team Kinara
    • 2 mins read


    According to numerous reports, the rate of loan rejection for women entrepreneurs is significantly higher in the developing world. Women-owned companies remain in the minority, and the obstacles women face in pursuing entrepreneurship are diverse and often distinct from those faced by their male counterparts. Despite the requisite aptitude, determination, and creativity for running a business, women face various personal and professional obstacles that hold them back. Most financial institutions and banks avoid lending to women entrepreneurs.

    There are several hardships women entrepreneurs have to face when setting up a business. Let’s look at some:

    • The problem of securing money

    Lenders might be sceptical about the abilities of women to run a business successfully. Moreover, a majority of women do not have land or property in their name to use as collateral to secure funds.

    • Gender bias

    Many still believe that women are meant for household chores, and nothing more. So, they avoid lending to women entrepreneurs as they don’t believe in their business acumen. Proving their worth in a male-dominated society is still a struggle for most female entrepreneurs.

    • Access of raw material

    Lack of liquidity or cash in hand leads to the inability to secure raw material in time. This leads to unwanted disruption of the production. Many women-owned cooperatives have failed due to a shortage of raw materials.

    Grow your business with HerVikas Business Loan for Women

    How Kinara Capital helps by lending to women entrepreneurs:

    1. Collateral-free loans

    Kinara Capital offers collateral-free loans within 24 hours. We also provide comprehensive services and personalized assistance you with the loan process from start to finish, without any bias.

    2. Special loans for women – HerVikas

    • Upfront discount available for women-owned MSMEs
    • Automatic discount of upto 1% for women proprietors
    • No extra documentation required
    • All loan types eligible for HerVikas discount

    3. Funding day-today business functioning

    We help you fund your business’s day-to-day functioning through working capital loans. You can fund the following activities and more with these loans:

    • Stock purchase
    • Premises renovation
    • General business expenses
    • Invoice financing
    • Purchase order financing
    • Product and market expansion

    4. Term loan for asset purchase

    We believe in lending to women entrepreneurs to help them establish the business of their dreams. We offer a term loan for asset purchase for the tenure of 12-60 months. You can use this loan amount to purchase new or used machinery. Interest rates start at 21% per annum on a reducing rate basis.

    “It’s not enough for women to just take care of the home. If you have a dream, you can pursue it, you just need some support, which I received from Kinara. It’s not easy to become a business owner, it gives me a lot of joy to say that I’ve reached this milestone. Now I can proudly say that I’m a HerVikas Business owner.”


    “With two collateral-free loans from Kinara capital, we were able to buy machinery and increase our turnover by five times from Rs. 30,000 to Rs. 1.5 lakhs.”

    M Banu

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    Written by
    Team Kinara
    • Tags
    • Ladies Business Loans
    • Business Loans
    • Kinara Capital
    • HerVikas
    • Women Business Loans

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