Compared to the last few decades we have seen a stable rise in empowerment among women. Women today are becoming more independent and taking the world into their hands, even financially speaking. Becoming financially independent does not only boost the confidence of the women but also the economy. Today to help women become financially independent or stable, the banks have introduced Personal loan for womens. These include schemes like the Mudra loan for women, Dena Shakti scheme, Annapurna scheme, Stree Shakti scheme, and many more.
Women can take Personal loans for several different reasons hence it gives them the flexibility to use the money according to their needs. A Personal loan for womens is appropriate to fund marriage expenses, travelling expenses, education or maybe even the case of a medical emergency. Different banks and NBFCs provide women with personal loans at affordable interest rates and flexible repayment tenure. In this article, we are going to discuss the process and steps on how to apply for a personal loan for women.
Features and benefits of a personal loan for a woman
Let us learn about the features and benefits of a personal loan that a woman receives if she applies for this type of loan.
Unlimited range of use
Personal loans are famous for a wide range of purposes. From managing wedding expenses to medical emergencies, Personal loans can cover it all. There are no indifferent rules on personal loans if a woman applies for one. She can use the borrowed loan amount to complete her personal needs. Usually, a lender could give her a loan amount of up to 40 lakhs, depending on her income.
Attractive interest rates
The bank gives low-interest rates to women on personal loans to make it more comfortable for them to repay their loan amount. You can avail of an interest rate starting at 10.25% p.a. Further, having a good CIBIL score or Credit score can help you negotiate with the lender to lower the interest rate.
No limit to the tenure
You can request a tenure according to your flexibility and comfort. The lender can give you a tenure usually ranging from 12 to 48 months. This flexibility allows you to manage the money prior while keeping in mind your expense and other budgets and be able to repay your loan amount without much stress.
No collateral required
Personal loans as explained above, are unsecured loans and thus do not require collateral. Women often do not have much collateral to offer and a personal loan makes it easy to borrow money without any security. Without having to stress about the loss of the security they can repay the loan with minimal or no stress.
Overdraft facilities available
The Personal loan for women has a special feature called the OverDraft facility. In this facility, if you are facing any problems repaying the lender then you can take an Overdraft. It reduces your principal sum, as you only have to pay the interest rate of your loan for the next 2 years. After the completion of 2 years, you go back to paying the principal amount for the remaining years of your tenure.
Instant application and approval
A personal loan is easy to issue and apply for. Nowadays you can apply for a personal loan via the online website that the lender provides. This makes the application part of this process quick and easy. You require minimal documentation to apply for the loan. Once the lenders or the bank sees that you are fit for the loan grant they approve the loan amount almost instantly. This is an advantage for those women who need money on an urgent basis.
Eligibility criteria for a personal loan for women
Now that we have checked the features and benefits of a personal loan for a woman let us check what makes them eligible to apply for it.
- Women need to be within the age gap of 21 to 60 years to be eligible.
- The borrower must be a resident of India.
- The woman can be either a salaried employee or a self-employed individual. You can also be an employee of the private sector or with the Local/Central/State government.
- The minimum net monthly income earned should be above 15 thousand.
- You should have a minimum of 1 year of experience and should be working your current job for at least 2 years.
- The credit score you need to maintain is above 750 points.
How to apply for a personal loan (for women)?
Let us understand and learn about the steps involved in how to apply for a personal loan for a woman.
- Visit the website or download the app of your chosen lender.
- Enter your phone number along with your area pin code.
- Then enter your Aadhar card information.
- Adjust the Loan amount, Interest rate, and Repayment tenure according to your desire and comfort.
- Fill in other personal information if the lender asks.
- Once you have finished filling up all the required information, click “Send”.
After verifying all details, if the bank feels satisfied, then the loan amount will be transferred to your bank account.
Also Read: Can I Apply for an Online Personal Loan?
Documents required for the personal loan (for women)
The documents required to apply for a personal loan for a woman are as follows.
- Copy of the identity proof; PAN card, Aadhar card, Voters ID, Driving license, or Passport.
- Copy of your Address proof; Driving license, Voter ID, Passport, Utility bills like Electricity bills/Gas bills, Leave and License Agreement.
- If you are a salaried employee then, the salary slip for the last 2 months and bank statement for the last 3 months.
- If you are a self-employed woman then an ITR, last 3 months’ bank statements, or Form 16.
Personal loans for women
Given below are the three popular loan schemes programmed to provide funds to women in need.
Mudra Loan for women
The government set up this loan scheme for the female entrepreneurs who wanted to open their boutique, parlour, or stitching shop. The scheme does not request any collateral.
The government has designed the Annpurana Yojana to help those women who want to curate a business in the catering industry. They do not have to pay the loan’s EMI for the first month but have to repay the loan amount within the next 36 monthly instalments. The bank can grant them a loan of up to 50 thousand.
Stree Shakti Yojana
In this scheme, a woman with majority ownership of a business can request a loan. The scheme gives you an interest concession of 0.05 if the loan amount is above 2 lakhs.
Women today have stepped up and taken every role they are given. We must support them in every step possible. Opting for a personal loan specifically for women has several benefits like low-interest rates, flexible tenure, instant disbursal of funds, and even minimal documentation among a few others. The lenders that offer this scheme are IDFC bank, HDFC bank, TATA Capital and SBI to name a few. If you are a woman and need urgent cash, look for the personal loan for Women option (available both online and offline).