In a significant push toward women entrepreneurship in India, FlexiLoans.com, a leading NBFC focused on MSME financing, has announced its plan to distribute over Rs 100 crore in business loans to women-led enterprises by 2025. This initiative aligns with efforts to close the financial gap faced by women entrepreneurs, ensuring they have the necessary funds to expand their businesses.
A recent McKinsey report highlights that if Indian women-led businesses receive adequate financial support, they could add over $280 billion to the GDP by 2025. FlexiLoans aims to contribute to this growth by providing collateral-free loans with minimal paperwork, making it easier for female entrepreneurs to access financing.
Helping Women Overcome Financial Barriers
Many women in India struggle to obtain financial support for their businesses. Government data shows that female entrepreneurs receive only 10% of formal credit, leaving a vast majority without proper funding. This lack of access prevents many women from scaling their businesses, limiting their contributions to the economy.
FlexiLoans is committed to bridging this financial gap by offering quick, hassle-free loans that do not require collateral. By simplifying the lending process, the company hopes to empower more women in business, especially in Tier 2 and Tier 3 cities, where access to formal credit remains limited.
Growth of Women-Led MSMEs in India
The Ministry of Micro, Small, and Medium Enterprises estimates that there are over 8 million women-led MSMEs in India. Over the last five years, FlexiLoans has observed a 2.3 times increase in the number of women borrowers. In 2019, the company served 1,300 women borrowers, which has now grown to over 3,000 in 2024.
Additionally, the company notes that nearly 70% of these female borrowers come from smaller cities and towns, showcasing a growing demand for business loans in rural and semi-urban areas. This upward trend highlights how digital lending platforms like FlexiLoans are making business financing more accessible to women across the country.
Loan Demand Among Women Entrepreneurs
The demand for business loans among women entrepreneurs has significantly increased over the years. FlexiLoans reports that the average loan amount requested by female business owners has surged by 81% in five years, rising from Rs 4.04 lakh in 2019 to Rs 7.31 lakh in 2024.
Government initiatives such as Stand-Up India Scheme and MUDRA Yojana have played a crucial role in boosting financial confidence among women. These programs have encouraged more female entrepreneurs to seek financial assistance, helping them scale their businesses effectively.
FlexiLoans has revolutionized digital lending for MSMEs, having disbursed over Rs 9,000 crore in loans across 1,500 cities and towns. By leveraging alternative data sources from e-commerce and payment platforms, the company is able to process and approve loans within 48 hours, ensuring a fast and seamless experience for borrowers.
More women entrepreneurs are now exploring business loan options in various industries, including readymade garments, FMCG products, medical stores, electrical goods, and cosmetics. With improving financial literacy and the growing adoption of digital lending, the demand for women-led MSME loans is expected to rise further.
Empowering Women Entrepreneurs
According to Ritesh Jain, Co-Founder of FlexiLoans, the company is committed to removing financial barriers for women entrepreneurs by offering swift and efficient lending solutions. By providing easy access to business loans, FlexiLoans aims to help women expand their businesses, create jobs, and contribute to India’s economic growth.
With the Rs 100 crore loan disbursement plan for 2025, FlexiLoans is set to strengthen the foundation of women entrepreneurship in India, ensuring that female-led businesses receive the support they need to thrive.
