Personal loans for women who are aspiring to become entrepreneurs are increasing by the day. Women in India can now seek financial help from banks and other financial institutions in their efforts to live their dreams and become their own bosses. The aim of these Personal Loans is to assist women in establishing their own places of business. In this case, we will be dealing with personal loans for beauty parlours.
Women can avail loans to establish their own beauty parlour. The funds acquired through the loan can also be used to construct or purchase equipment and tools as well as to meet daily expenses related to the business.
Women who are seeking loans to start their own beauty parlour will be pleased to know that most major banks that offer the service don’t require collateral to sanction the loan to you, unless specified. The banks are tied up with several established beauty parlours and brands such as Lakme, Cavin Kare and Naturals to provide aspiring entrepreneurs with added benefits. The term of the loan will depend upon the bank from which you avail the facility. The minimum age of the applicant will have to be 20 or 21, again depending upon the bank you choose. The loan amount also varies depending upon the bank, but in most cases, the working capital does not exceed more than 50% of the entire amount.
Women who wish to undertake proprietary concerns, or partnership firms with majority of women as partners and companies whose shares are held mainly by women may apply for a loan for beauty parlour.
If an aspiring businesswoman borrows up to Rs. 25,000, the margin on the amount will be nil. However, the rate is set at 15% for amounts between Rs. 25,000 and Rs. 2 lac, and 25% between Rs. 2 lacs and Rs. 10 lacs (Oriental Bank of Commerce rates). Customers will be obliged to pay penal interest of around 2% per annum in excess of the usual lending rate if they make irregular payments.
In case the bank asks for security, the funds utilised from the bank’s finance is charged over both immovable and movable assets. As for collateral, most banks need no pledging of assets if the loan amount is below Rs. 2 lacs. But in case the amount is more than Rs. 2 lacs, the tangible collateral security that has to be pledged can range up to 100% of the loan value.
The customer can opt for guarantee coverage under the CGTMSE scheme if she cannot provide the aforementioned collateral securities at the time of taking out the loan.
The borrower has to bear the cost of insurance for all the assets purchased through the bank’s finances and they are required to be insured as per the bank’s agreed clause.