Women-led startup loan demand surges 18% in last 5 years: Share India Fincap CEO

Women's Day 2024: Women are now borrowing more to start up their own businesses. In a recent interaction with Republic Business on the occasion of International Women's Day 2024, Aastha Gupta, Chief Executive Officer of Share India Fincap, shed light on the transformative trends in women seeking loans for entrepreneurial ventures.

Gupta specified that over the past five years, there has been a growth of 18 per cent in the number of women pursuing loans for entrepreneurial endeavours, signalling a notable stride towards economic empowerment for women.

"The increasing number of women seeking loans for startups and businesses reflects a substantial move toward economic empowerment," Gupta said.

"The 18 per cent growth in seeking loans and surge in interest not only showcases growing confidence amongst women but also holds the potential to contribute to the nation," Gupta added.

Expanding horizons and building confidence

The surge in women entrepreneurs seeking financial support reflects a growing confidence amongst women to embark on independent ventures. Gupta stressed the potential impact of such initiatives, not only benefit the female leaders but also create jobs, boost innovation, and play a role in promoting gender equality within society.

"Such initiatives and startups not only benefit the female leaders but also contribute to the nation's economy and promote gender equality in our society by creating jobs and boosting innovation," Gupta further said.

Women's responsible borrowing

Astha Gupta highlighted that women are not just confident but are responsible borrowers. Share India Fincap has a very low rate of delinquency, that is less than 0.5 per cent.

"Delinquency refers to the failure of a borrower to make payments on time. A delinquency rate of less than 0.5 per cent means that less than half of one percent of the loans provided by Share India Fincap are overdue or in default," she said.

Gupta attributes this success to a heightened confidence in borrowing, leading to increased trust from lenders. She also notes the growing awareness amongst women about the significance of their loan history, encouraging responsible borrowing.

Gupta suggests that other women can leverage these insights by focusing on building a good credit score through timely repayment of smaller loans, paving the way for improved financial prospects.

"Women are feeling more confident about their ability to borrow money," Gupta points out. "As they consistently pay back their loans on time, banks and lenders start to trust them more," she added.

Takeaways for aspiring women entrepreneurs

As a voice for women's economic inclusion, Gupta offers advice to women hesitant due to financial concerns or societal barriers. She advocates a step-by-step approach, emphasising the importance of starting small, progressing steadily, and believing in one's ability to succeed.

Crafting a robust business plan, seeking mentorship, and exploring diverse funding options are key strategies to overcome hesitations and navigate the entrepreneurial journey.

"For women who have doubts about getting loans because of financial issues or societal barriers, my tip for them is to go step by step and adopt things accordingly with firmness and self-assurance," Gupta advised.

'She' has a multitasking approach

Gupta sheds light on the resilience and adaptability demonstrated by women entrepreneurs, especially in the face of market uncertainties. Women's multitasking abilities enable them to navigate difficult situations effectively.

Gupta highlights the importance of maintaining a good credit score and timely loan repayment as a testament to their commitment to overcoming adversities and sustaining their businesses.

"Women who run their businesses show that they can keep going even when things get tough, especially when the economy is shaky or things are uncertain," Gupta said. "They're good at doing many different tasks at the same time, which helps them handle tricky situations well," she added.

 

Institutional support: A crucial pillar

Highlighting the role of financial institutions and government policies, Gupta stressed the need for tailored loan types with low-interest rates and extended repayment durations for women entrepreneurs.

She advocates for financial education through social seminars and proposes government registration for women-owned businesses to enhance credibility and facilitate easier access to loans.

Gupta envisions a supportive ecosystem where institutions collaborate to provide the necessary resources for women entrepreneurs, particularly those from underprivileged backgrounds, boosting inclusion.

"Financial institutions like RBI, Banks, NBFCs, and MFIs together form an ecosystem to bank the unbanked, fostering financial inclusion in Tier-2 and Tier 3 cities," Gupta outlines.

"Banks and other financial service institutions can frame special loan types that fit women's requirements, for example, low-interest rates and long durations to pay back the loan EMI," she asserted.