Villgro Helps 100+ Women Micro-Entrepreneurs Gain Access to Credit
03 April 2025, New Delhi: India’s Economic Survey 2024-25 revealed that only around 20% of MSMEs in India are owned by women – underscoring the need to create a strong enabling and conducive ecosystem for the nation’s women entrepreneurs alongside government initiatives – focusing on credit access, formalization and skills training. Villgro, a leading social enterprise incubator, has been working actively for several years to boost access to formal credit and innovative financing/credit solutions among women micro-entrepreneurs across our country.
As the new financial year i.e. FY 2025-26 begins, Villgro has announced that the innovative financing solutions powered by Villgro and its partner organizations have, to date, enabled 106 women micro entrepreneurs across India to take business loans. By helping those previously deemed ‘unbankable’ women secure the funding they need to build and sustain their businesses, these efforts are not only empowering women-led enterprises to thrive but also shaping a more inclusive financial ecosystem – one that strengthens livelihoods and drives lasting socioeconomic impact.
Notably, women entrepreneurs consistently demonstrate high loan repayment rates, putting them among the most reliable borrowers in the nation’s financial ecosystem. Despite their strong track record, women entrepreneurs are receiving only 5% of total commercial financing, revealed Villgro Beyond the Numbers study. Various systemic barriers – including risk perception, lack of collateral ownership, and gender norms – continue to restrict their access to funding. This is exactly where Villgro is stepping in, attempting to create a difference by introducing tailored credit solutions, peer-to-peer lending and alternative funding mechanisms for bridging the nation’s gender financing gaps.
“Over the years, we at Villgro noticed that when it comes to so many women micro-entrepreneurs in India – who remain underserved by traditional financial institutions – lack of access to capital acts as a major constraint to their business growth, limiting their ability to scale, adopt new technologies and expand market reach. This is why, through multiple innovative avenues, we have been seeking to increase their access to credit while removing systemic barriers; and the outcomes have made us more than proud. Through Villgro’s support, hundreds of women-led businesses across the country have not only expanded and grown substantially, but also demonstrated strong repayment behaviour, reinforcing the case for greater financial inclusion. The evidence is clear – women entrepreneurs are bankable and reliable borrowers, and supporting them can contribute to a more inclusive and equitable economy,” commented Vibha Sharma, Lead – Impact Finance, Villgro.
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