Best Types of Business Loan for Women

• BY: IFFCO Kisan Finance
• May 09, 2025

Whether it’s a woman running a boutique in a city or making pickles in a small village, one thing is clear—women across India are stepping up as entrepreneurs. They’re using their skills, ideas, and determination to build businesses, support their families, and create jobs in their communities. But many women still face a common hurdle-not having easy access to funds. Even when they’re ready to grow their business, the lack of financial support can hold them back. That’s where specially designed business loans for women can make a big difference. These loans help turn dreams into reality—whether you're in a small town, a remote village, or a busy city.

Different loan options are available for business loans for women entrepreneurs

Well, the Indian government and the private institutions offer plenty of finance and loan options for the women entrepreneurs. Finding them and availing them as per your eligibility can help you achieve the best standards in this context.

MSME Loans

MSME loans are specially designed to support Micro, Small, and Medium Enterprises by providing them with the funds they need to start, manage, or expand their business. For women entrepreneurs—whether they’re running a tailoring unit in a village or a small café in the city—these loans can help buy equipment, stock inventory, hire workers, or even open a second outlet. By offering easier access to finance, MSME loans break the biggest barrier many women face and give them the chance to grow with confidence and contribute actively to the economy.

What makes it the best choice for women

For women managing Micro, Small, and Medium businesses—be it manufacturing, trading, or services—MSME loans provide ideal financial support. These loans are designed to support the growth businesses and are often backed by government schemes to make the process easier and more affordable.

Eligibility

To get the loan, having a good credit score is important—it helps the lender decide if you're eligible. You’ll also need to share some basic personal and business documents during the application process.

Benefits offered

• Subsidized interest rates under government support
• Easy and Quick approval having a good credit score
• Quick processing via NBFCs like IFFCO Kisan Finance

Commercial Business Loans

As your business grows, so do its financial requirements. That’s where Commercial Business Loans step in. These loans are specifically designed to support businesses in managing significant expenses—whether it's expanding operations, purchasing new equipment, or taking on larger projects. With the right financial backing, you can confidently scale your business and continue progressing toward your goals. Typically, business loans cater to well-established enterprises focused on growth and expansion. Commercial loans are the go-to solution for businesses that do not fall under the MSME category.

What makes it the best choice for women

Ideal for women looking to expand, diversify, or digitize operations. Funds can be used for infrastructure, buying machinery, or managing cash flow.

Eligibility

These loans are typically offered to businesses that have been operational for at least a year and are generating profit, though specific criteria may vary by organization.

Key benefits of the loan

• High loan amounts to fuel large-scale business needs
• Flexible tenure and repayment options suited to your cash flow
• Multipurpose usage—whether for infrastructure, machinery, or working capital

The loans are generally offered by top commercial banks like HDFC Bank, ICICI Bank, Axis Bank, Tata Capital etc

Loan Against Securities

You can borrow loans against your existing investments. These can include shares, mutual funds, or insurance policies. You can also get a loan against the assets like buildings and other similar options.

What makes it best for women

This is an excellent option for entrepreneurs who want capital without liquidating long-term investments. In fact, many banks offer special deals for these loans.

Eligibility

To secure the loan, you will need to provide proof of ownership for any assets you're using as collateral. The documentation process is more detailed, so instead of applying online, you'll need to visit the bank branch in person.

Key benefits offered

• Lower interest rates due to the secured nature
• Fast disbursal with minimal paperwork
• Borrow as needed through overdraft facility

Supply Chain Finance

Supply chain finance, also known as supplier finance or reverse factoring, is a financial solution that aims to optimize the cash flow and working capital of companies involved in a supply chain. It involves a range of financial instruments and techniques to facilitate the smooth flow of funds between different participants in the supply chain, including suppliers, manufacturers, distributors, and customers.

Components

1. Buyer: The buyer is the company that purchases goods or services from its suppliers. In supply chain finance, the buyer plays a central role as it often initiates financing programs to support its suppliers.

2. Supplier: Suppliers provide goods or services to the buyer. They are the primary beneficiaries of supply chain finance programs as they gain access to early payments, improving their cash flow

3. Financial Institution: Financial institutions, such as banks or specialized supply chain finance providers, facilitate the financing process. They provide the funds to suppliers, either by purchasing the supplier's receivables or offering loans based on the buyer's creditworthiness.

Eligibility

For Supply Chain Finance, your monthly income and credit score are important factors in determining the loan amount you can access.

Key benefits offered

• Lower risk lending since its invoice-backed
• Smoothens cash flow by reducing payment cycle delays
• Often backed by buyer or anchor companies

Apply Today

In Conclusion

Women entrepreneurs are no longer on the fringes—they are driving India’s economic engine. With financial products tailored to diverse business needs, from collateral-free MSME loans to asset-backed funding options, women can access the capital they need to thrive.

No matter if you're just starting your business or growing an existing one, IFFCO Kisan Finance is here to help women entrepreneurs and MSMEs with easy loan options. We support you at every step with trusted financial solutions.

---

Contact Us:

• Email: care@kisanfinance.com
• Website: www.iffcokisanfinance.com
• Phone: 0124698 7700

Choose the right business loan, fuel your ambitions, and be part of India’s next wave of transformative entrepreneurship.