About 65% Self-employed Women In Metros Not Taken Biz Loan: Report
About 39 per cent self-employed women in metros rely on personal savings to fund their businesses, the report says
About 65 per cent of self-employed women in urban Indian metros have not taken a business loan, according to a survey by Crisil and DBS Bank India. It stated that 39 per cent rely on personal savings to fund their businesses.
Among those who have obtained loans, bank loans were the primary choice, preferred by 21 per cent, the report 'Women and Finance' noted. Women entrepreneurs often use personal assets for collateral, with 28 per cent leveraging personal property and 25 per cent turning to gold— reflecting their risk-averse approach to investments.
The report ‘Women and Finance’ stated that a total of 64 per cent of respondents who use gold as collateral predominantly invest in safer options like savings accounts and gold. The survey revealed a significant awareness gap regarding government schemes, with 24 per cent of respondents indicating they were unaware of available options.
Additionally, 34 per cent stated they had not utilised any government scheme for their businesses. It also stated that 39 per cent of women entrepreneurs use cash credit (CC) and overdraft (OD) facilities, followed by corporate credit cards (25 per cent) and property-backed term loans (11 per cent). 39 per cent of respondents cited competitive interest rates and flexible repayment terms as key factors influencing their choice of bank for loans.
Beyond financial support from banks, women entrepreneurs expressed a desire for mentorship (26 per cent), support in navigating government schemes (18 per cent) and assistance in digitalising financial processes (15 per cent).
In terms of business enablement, 18 per cent were interested in women-based communities, and 13 per cent sought access to industry-specific financial data and benchmarks.
The Unified Payments Interface (UPI) has played a pivotal role in digitising India’s financial transactions. According to the Reserve Bank of India, the share of UPI in digital payments reached close to 80 per cent in fiscal 2024. UPI leads in the payment of business expenses, followed by mobile banking.
