Gender-Inclusive Finance and Women Entrepreneurship

Niti Aayog emphasizes the need for targeted policies to enhance access to affordable credit for women, with flexible loan terms and convenient repayment options. This aims to increase the uptake of credit by women and address gender bias in credit markets.

Challenges and Opportunities

• Despite increasing labor force participation and entrepreneurial activity among women, systemic barriers persist, including: 
  1. Limited access to finance
  2. Gender biases
  3. Inadequate financial literacy
• Women's entrepreneurship has immense potential, which can be unlocked through: 
  1. Targeted policies
  2. Inclusive financial products
  3. Public-private collaboration

Statistics and Trends

• Women's share in business loan origination has increased by 14% since 2019.
• Their share in gold loans has grown by 6%.
• By December 2024, women are expected to account for 35% of business borrowers.

Current Challenges

• Challenges faced by women include: 
  1. Credit aversion
  2. Poor banking experiences
  3. Barriers to credit readiness
  4. Issues with collateral and guarantors

Future Prospects

• There is an opportunity for financial institutions to offer gender-smart financial products tailored to women's unique needs.
• 42% of loans availed by women by 2024 are for personal finance, up from 39% in 2019.
• Gold loans constituted 36% of all loans availed by women in 2024, compared to 19% in 2019.