Mumbai: Digital lender FlexiLoans plans to disburse Rs 100 crore in loans to women-led micro, small, and medium enterprises (MSMEs) in 2025 as demand for business credit rises, particularly in Tier 2 and 3 cities.
The company, which has disbursed over Rs 500 crore in loans to women entrepreneurs since its inception, reported a 130 per cent increase in the number of female borrowers between 2019 and 2024. Nearly 70 per cent of these borrowers are from smaller towns, reflecting a shift in credit accessibility beyond metro cities.
Credit Access Remains a Challenge
Despite the rising number of women entrepreneurs, access to formal financing remains limited. A McKinsey report states that only 10 per cent of women entrepreneurs in India have access to institutional credit, while women-led MSMEs have the potential to contribute over $280 billion to the GDP by 2025.
FlexiLoans’ data shows that the average loan size for women borrowers has increased by 81 per cent in five years, from Rs 4.04 lakh in 2019 to Rs 7.31 lakh in 2024. The increase suggests growing financial confidence, aided by government schemes such as the Stand-Up India Scheme and MUDRA Yojana.
Women Borrowers and Business Sectors
Women entrepreneurs taking loans from FlexiLoans are primarily in the 31-40 age group, followed by those aged 41-50. Most borrowers operate in the wholesale and retail sector, including businesses dealing in readymade garments, FMCG products, medical stores, electrical goods, and cosmetics.
The company noted that the average loan tenure for women entrepreneurs remains at 26 months, indicating financial stability in repayments.
