A Guide on Small Business Loans for Women

May 23, 2024
Updated on

There is an increasing need for women entrepreneurs in India to be supported in order to participate in the balanced growth of our economy. The growing role of women as entrepreneurs will lead to a shift in the country’s market and economic development. Women-owned businesses play an important role in inspiring all sections of society and helping to create job opportunities at scale.

However, the path for women entrepreneurs has not been easy. India has been amongst countries where women entrepreneurs, as well as women professionals, have struggled to successfully participate in the workforce given the less favourable conditions, strong cultural biases, and a lack of business tools such as capital, education, and growth opportunities. For women entrepreneurs, who have immense potential to affect positive socio-economic change for the country, capital access is the main issue that hinders growth. One solution that can bridge this gap is business loans for women. Let’s explore what these loans are and how they can help empower women entrepreneurs in India.

Understanding Business Loans for Women

There is a substantial gap when it comes to capital access for women entrepreneurs. To solve this problem, there are several funding options, like Unsecured Business Loans for Women, to encourage them to go ahead with their entrepreneurial journey. Small business loans provide access to capital many women entrepreneurs may not otherwise have. This can help them make decisions more quickly, invest in the necessary equipment and staff for their business, and make a larger impact in their industry. Business loans for women can also provide women entrepreneurs the resources to expand their businesses, often allowing them to reach new customers and markets. Loans for female entrepreneurs that provide additional perks like discounts can be especially helpful for women-owned businesses, which often have lower capital and liquidity than their male-owned counterparts.

Loans for female entrepreneurs have the potential to transform the way these business owners participate in the advancement of the economy by giving them the ability to seize market opportunities and steadily expand their businesses. Loans for small business for ladies provide consistent capital support as they grow their businesses, enabling them to implement business development plans without dipping into personal funds or business turnover.

This has led to a major discrepancy in women taking the entrepreneurial path Only 20% of the enterprises in India are women-owned. Kinara Capital is a strong advocate of gender parity. Kinara is one of India’s few financial services companies founded and led by a woman entrepreneur and inclusion is one of our core values. Through our unique HerVikas program, we support women to start their businesses by giving them easy access to formal credit in the form of our collateral-free business loans for women. Let’s look at why business loans are so important for women entrepreneurs and how you can get easy, collateral-free loans for women from Kinara Capital if you are a woman MSME entrepreneur. Let’s take a look at the different forms of loans for small business for ladies.

Types of Small Business Loans for Women

Working Capital Loans

A working capital loan can enable MSME women entrepreneurs to fulfil their company’s daily activities without financial problems. These small business loans for women are very useful for purchasing raw materials or stock, making advance payments to vendors or suppliers, renovating business premises, hiring seasonal or part-time workers and product or market expansion of business.

MSME Women entrepreneurs often face difficulties accessing capital from traditional lenders due to the lack of collateral and lengthy loan processing times. NBFCs (Non-Banking Financial Companies) like Kinara Capital provide flexible loan options and faster disbursal of funds, allowing women entrepreneurs to get the funds they need quickly. This can be especially beneficial for women entrepreneurs who may not have a long credit history or a high credit score, as these loans allow them to build their credit score and access capital more easily.

Kinara provides Working Capital Loans amounting from Rs. 1 lakh to Rs. 30 lakhs, wherein the repayment tenure can be around 12 to 60 months, and interest rates start from 24%. Kinara also provides flexible short-term working capital loans for existing customers to meet their immediate capital needs. These smaller ticket-size loans start from 50 thousand to 2 Lakhs. Short-term loans are granted for a duration of six to twelve months to finance working capital and limited capital requirements.

Grow your MSME with collateral-free business loans

Business Loans for Machinery Purchase

Machinery Loans from NBFCs are a great way for women entrepreneurs to acquire the capital they need to purchase business assets. These loans can be used to buy a new or second-hand machine. The availability of such loans makes it easier for women entrepreneurs to access the capital they need to grow their businesses. The loans are available from NBFCs, which provide short-term financing for small and medium-sized businesses.

These loans are often more accessible than traditional bank loans and can be tailored to meet the unique needs of individual businesses. The majority of NBFCs offer business loans for asset purchase at competitive interest rates and flexible repayment terms. This makes them an attractive option for women entrepreneurs who want to invest in their businesses but may not have access to the same resources as larger businesses. Kinara Capital offers interest rates starting at 24% per annum on a reducing rate basis.

HerVikas By Kinara Capital

Women Entrepreneurs are majorly responsible for improved economic growth and stability in India. However, according to the 6th economic census by the Ministry of Statistics and Programme Implementation, women-owned businesses comprise around 20% of the total enterprises in India, which is alarmingly low.

HerVikas Program is a specially designed business loan from Kinara Capital to empower women entrepreneurs. Women-owned MSMEs in the manufacturing, trading, and services sector can avail a 1% discount on loan interest rates to take their business to the next level. Women applicants need not provide any additional documents to get this loan. It will help them pursue their entrepreneurial dream and empower them to grow and create a positive multi-generational impact in the community.

Benefits of Business Loans for Women

Business loans for women gave a host of benefits for enterprises run by women entrepreneurs. While women have historically struggled to access capital to boost their business growth, they have great potential to effect socio-economic transformation if equipped with the right tools. Traditional lenders often avoid offering loans for small businesses for ladies without collateral because they consider it high risk. However, new-age fintechs like Kinara Capital are devising unique ways of carrying out unbiased loan-decisioning through tech-led processes to level the playing field for women entrepreneurs.

Women-owned businesses can make the most of this available financing by investing in cutting-edge equipment, business premise expansion and improvement, customer acquisition, buying raw materials and inventory, covering bills and sudden expenses, servicing big orders, and myriad other avenues to boost business growth. Business loans for women are the perfect solution to tide over a variety of requirements, whether it is government loans for women or loans for small business for ladies issued by banks and NBFCs.

Eligibility Criteria for Small Business Loan for Women:

  • Manufacturing businesses need to be established for 12 months at the time of the application. 
  • Trading and services-related business must be established for a minimum of 24 months at the time of application.
  • The business must have a turnover of at least Rs 50,000 and less than Rs. 2 crores.
  • The requested loan amount should be between Rs. 1 lakh and Rs. 30 lakhs.
  • The pin code should be one where Kinara Capital already offers services and the business should fall under the list of sectors and sub-sectors serviced by Kinara.

Documents Needed for Business Loan for Women

At Kinara Capital, there are no additional documents needed for business loan for women under HerVikas. Take a look at this business loan documents list to know what you will need to keep handy before applying:

1. Proof Of Identity: You will have to provide proof of the company’s existence. This may be presented as water or electricity bills, Udyam Registration, Company registration, the PAN card of your business, etc.

2. Proof Of Individual Identity: You need to provide your proof of identity as well. This can be fulfilled by Aadhar card, PAN card (personal), Driver’s License, Passport, etc. Your co-applicant can skip the PAN card if it is unavailable.

3. KYC Documents: Documents needed for business loan include KYC, which are the most important and common documents for business loans. These include the incorporation certificate, partnership deed, identity/address proof, PAN cards, etc.

4. Financial Documents: Finance-related documents like profit and loss accounts, balance sheets, passbook, account statements, etc.

5. Bank Statements: Business loan documents include bank statements. Check and confirm what period your lender needs your bank statement for and have them ready.

6. Certifications: Some more certifications like GST certification and if valid Shops & Establishment Certificate, Trade License Certificate, or Factory Registration Certificate are also important documents for business loans.

Steps to Apply for a Business Loan for Women

Kinara Capital has a simple 3-step process to apply for business loans for women under the HerVikas program which offers women entrepreneurs with an upfront discount:

Step 1: Eligibility Check

To start your business loan application, download the myKinara App and take a 1-minute eligibility check. You can access the eligibility check in seven different languages for a seamless experience.

Step 2: Screening

The business and the entrepreneur are screened following Kinara’s MSME loan criteria by validating the KYC and registration details.

Step 3: Document Upload

You need to submit your KYC, applicant, co-applicant, business KYC (ID and address proof), applicant PAN Card, business registration document, last 12 months’ bank statements, GST registration (if available), and business vintage proof.

With Kinara’s AL/ML-led decisioning models, you can receive your business loan in just 24 hours. All you have to do is download the myKinara App and apply for business loan online. The business loan application is simple and makes it extremely convenient to apply for business loan for women


Women have many inspirational motives for launching a company of their own. For some, it is a way to achieve financial independence and gain control over their lives. For others, it is an opportunity to be creative and bring a unique product or service to the market. Others may want to challenge themselves and prove to themselves and the world that they can succeed. Many women want to make a positive impact on their community by providing employment and economic stability. Women’s entrepreneurial skills are just as powerful and effective as those of men. Their leadership and dedication can be an example to other women who are inspired to become entrepreneurs. Women are often more resilient, resourceful and determined to succeed than their male counterparts. They are more likely to take risks and think outside the box in order to achieve their goals. Women entrepreneurs have proven that they have the power to change the world for the better.

However, for women-owned MSMEs looking for quick funding to establish their business without resorting to unscrupulous lenders, a Small Business Loan for women from a trusted NBFC like Kinara Capital could be just what they need! HerVikas Loans can be used for various purposes, including purchasing inventory and equipment, paying wages, managing cash flow, etc. It is the right support for women business owners who need help raising capital for projects like expansion or acquisitions.

Kinara Capital is a women-led fintech company encouraging women’s empowerment and providing easier access to capital for small entrepreneurs across India through collateral-free business loans. Kinara is one of the trustworthy lending platforms in India that provides Unsecured Business Loans to women-owned MSMEs. MSME women owners can avail of fast and flexible loans from ₹1 lakh to ₹30 lakhs available within 24-hours from this RBI Registered Systemically Important NBFC in India. With its mobile-first approach, the company has made its myKinara App available in vernacular languages. Any registered MSMEs from manufacturing, trading and services sectors that need funding for their growth can opt for unsecured or collateral-free business loans from Kinara Capital.


1. What is HerVikas Program?

HerVikas Program is a myKinara Business Loan specially designed to empower women entrepreneurs. Women-owned MSMEs in the manufacturing, trading and services sector can avail a 1% discount on loan interest rates to take their business to the next level.

2. Do I need to submit any additional documents to get 1% discount on the loan interest rate?

No. Women applicants need not provide any additional documents to get this loan.

3. Do I require any collateral to acquire HerVikas Business Loans?

Kinara Capital provides collateral-free business loans. This means you will not have to submit any property documents while applying for a business loan from Kinara.

4. How do I apply for a myKinara Business Loans for women online?

To apply for a business loan, start by taking the 1-minute eligibility check, click here to get started. If you clear the business loan eligibility, you can take the loan application forward by providing personal and business documents to complete the process. One of our representatives will also reach out to you to help you with the rest of the process.

5. How long does it take to get approved for Small Business Loans for women?

Kinara’s provides quick business loan disbursals to the customers. Therefore, MSME women entrepreneurs can acquire the entire amount in their bank account within 24-hours.

Check your Eligibility in 1-minute!

Check your Eligibility in 1-minute!

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