Women in Pakistan face many challenges when trying to start their own businesses, and getting access to business loans can be an important part of the process.
Over recent years, there has been an increase in business loans specifically designed to help women get their own businesses off the ground.
These loans have made it far easier for women to start their own businesses, especially those in developing countries like Pakistan.
With the right information, any woman with determination can find a loan that will enable her to get started in the business world.
This article contains the top five ways to get business loans for women in Pakistan and elsewhere around the globe as Pakistani women.
Business Loans For Women | How To Get A Women’s Business Loan
Table of Contents
- Business Loans For Women | How To Get A Women’s Business Loan
The Women Entrepreneurs Association Of Pakistan
The Women Entrepreneurs Association of Pakistan is a non-profit organization that provides business loans for skilled women.
The association has relationships with various banks and can help women secure loans in less than seven working days, which is the average time taken by other banks.
What’s more, the loans are available at competitive interest rates and can be accessed via mobile phone.
In just four years since it was founded, WEPA has helped over 15,000 women entrepreneurs in Pakistan take their ideas and turn them into reality.
Through this organization, thousands of Pakistani women have been able to grow businesses from simple street stalls or small kiosks all the way up to large supermarkets and furniture shops.
If you want your own chance at having a successful business in Pakistan, apply for one of these business loans for girls today!
The Small And Medium Enterprises Development Authority
The Small and Medium Enterprises Development Authority is a government institution that provides loans for women in Pakistan.
It was created by the Pakistani government in 1993 and offers loans that range from PKR 30,000 to PKR 500,000.
The loans are given for an interest rate of 12% per annum and have a repayment period of between five and ten years.
They also offer urgent business loan for women which is typically given out within 15 days of application.
These sites provide businesses with loans ranging from PKR 50,000 to PKR 5 million. Banks may also offer online business loans for women if they meet certain qualifications.
Applicants must have a minimum net worth of PKR 1 million or a monthly income of at least PKR 25,000 to qualify for this type of loan.
The National Bank Of Pakistan
The National Bank of Pakistan offers business loans and microfinance loans for women in Pakistan. The National Bank of Pakistan also has a loan scheme for women who are looking to start their own businesses and need funding.
The National Bank of Pakistan is the largest state-owned bank in Pakistan, with over 1200 branches across the country.
They offer a variety of loan products including short-term, medium-term, and long-term loans, agricultural loans, commercial financing, and more.
In order to apply, applicants must be Pakistani citizens or have been granted resident status by a local government.
The applicant must be able to show evidence that they have conducted some research about their proposed venture.
Provide a clear timeline of activities and budget; submit an application form with all the required documents.
Pay a non-refundable fee of 10% of the amount borrowed as an initial payment which will not be deducted from any payments later on.
The Akhuwat Foundation
Akhuwat also has an incubation program that provides a monthly stipend of PKR 50,000 to help female entrepreneurs while they start their businesses.
The foundation offers legal services, startup support, and mentoring to Pakistani women who are trying to become entrepreneurs.
Akhuwats goal is not only to make it easier for women in Pakistan but also to create more jobs and opportunities.
Akhuwat created a women-only bank that is run by women, with the goal of eventually becoming self-sufficient so they can offer other products and services to the public.
The Kashf Foundation
Pakistan has a thriving microfinance industry, with more than 400 local and international microfinance institutions and a market of 4.2 million borrowers.
The Kashf Foundation, a non-profit organization based in Karachi, Pakistan is working hard to level the playing field by providing loans for women entrepreneurs at no interest with flexible repayment terms.
They have provided more than 1.5 million loans totaling over $100 million since 2005 – each loan averaging about $500.
Some of the most popular industries where these loans are being used are healthcare, education, and beauty services.
Pros And Cons Of Getting Business Loans For Women
The pros and cons of getting business loans for women in Pakistan are as follows:
- Pros: The loan will cover the cost of a start-up.
- Cons: The loan will have to be paid back with interest, which can cause financial problems.
- Another downside is that you might not get enough money because you need more than what the bank offers.
- You also may not qualify because banks often prefer men who are already established in their careers over women who lack experience or credentials.
- Pro: If you successfully establish your business with this funding, it’s likely that they’ll fund other projects down the road.
- Con: You’ll need to provide collateral like property or assets worth at least 150% of what you’re borrowing plus pay hefty fees to get approved for most loans.
- One downside is the time it takes to get a decision from the lender on whether you will receive financing or not.
- If your request is denied, there’s no guarantee they’ll tell you why; but if they do tell you why that information might help you improve your application next time around so it stands a better chance of being accepted.
- Most people seeking business loans for women in Pakistan find success by approaching friends and family first before looking into traditional lending options like credit cards or payday loans.
Business Loans In Pakistan FAQs
Top 3 platforms to get business loans in Pakistan?
Akhuwat, Kashaf Foundation, and Women Entrepreneurs Association of Pakistan are the Top 3 platforms to get business loans in Pakistan.
How much business loan amount women can get from Akhuwat Foundation?
Akhuwat Foundation gives PKR 50,000 business loans for women as a monthly stipend, which is actually interest-free.
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