By Abhay Ray 
Introduction
FlexiLoans.com, a prominent non-banking financial company (NBFC) catering to micro, small, and medium enterprises (MSMEs), has announced a significant plan to disburse over ₹ 100 crore in loans to support women-led small and medium businesses by 2025. This initiative underscores FlexiLoans’ commitment to empowering women entrepreneurs and addressing the persistent credit gap faced by them in India.
The announcement follows a McKinsey report, which highlights the untapped economic potential of women-owned businesses. The report estimates that with the right financial support, women entrepreneurs in India could contribute more than $280 billion to the country’s GDP by 2025. This insight has prompted FlexiLoans to launch a dedicated effort to facilitate easier access to capital for women-led businesses, a step that could have a transformative impact on India’s economy.
Bridging the Credit Gap
According to government statistics, women entrepreneurs in India receive a disproportionately small share of formal credit, amounting to only 10% of the total credit available to businesses. FlexiLoans aims to address this disparity by offering collateral-free business loans with minimal paperwork, making the process of securing loans easier and more accessible for women entrepreneurs. By removing barriers such as stringent collateral requirements and reducing the documentation burden, FlexiLoans hopes to close the credit gap that has long hindered the growth of women-led businesses in India.
This approach is particularly timely as the country sees an increasing number of women entrepreneurs stepping into the MSME sector. FlexiLoans believes that by providing tailored financial solutions, it can play a critical role in enabling these women to scale their businesses and contribute more significantly to the nation’s economic growth.
Growth of Women-Led MSMEs
The growth of women-led businesses is a crucial trend in India’s entrepreneurial landscape. According to the Ministry of Micro, Small and Medium Enterprises (MSME), there are currently more than 8 million women-led MSMEs in India, a number that continues to rise steadily. FlexiLoans has experienced first-hand the growing demand for business loans from women entrepreneurs. Over the past five years, the company has seen a 2.3x increase in the number of female borrowers, growing from 1,300 women borrowers in 2019 to over 3,000 women borrowers in 2024.
Interestingly, nearly 70% of these borrowers come from Tier 2 and Tier 3 cities, which suggests that the demand for financing is not limited to major urban centers but is also growing rapidly in smaller towns and cities. This trend reflects a broader shift in India, where women from smaller towns are increasingly venturing into business ownership, seeking financial support to grow their enterprises.
This rising demand for business loans from women-led MSMEs in Tier 2 and Tier 3 cities indicates a growing recognition of the entrepreneurial potential of women outside of major metropolitan areas. As access to financing becomes more widespread, it is expected that more women entrepreneurs will enter and expand their businesses, further contributing to economic development in these regions.
Growing Loan Amounts and Increased Financial Confidence
FlexiLoans has also observed positive trends in the loan amounts requested by women entrepreneurs. Over the past five years, the average loan size requested by female borrowers has increased by 81%, from ₹ 4.04 lakh in 2019 to ₹ 7.31 lakh in 2024. This surge reflects the growing confidence that women entrepreneurs have in seeking financial support for their business ventures. Several government initiatives, such as the Stand-Up India Scheme and the MUDRA Yojana, have played a key role in promoting financial inclusion and building financial confidence among women in India.
The increasing loan size indicates that women entrepreneurs are no longer just seeking small amounts of capital but are now looking for larger sums to scale up their operations. This shift is a clear sign that women-led businesses are maturing and are poised for expansion, with the support of financial institutions like FlexiLoans.
FlexiLoans Co-Founder Ritesh Jain highlighted the company’s commitment to eliminating the obstacles women entrepreneurs face when seeking credit. He stated, “Our commitment is to provide easy access to collateral-free business loans with minimal documentation, ensuring that women can grow their businesses without financial barriers. With our tailored financial solutions, we continue to empower them to reach new heights, scale their operations, and contribute significantly to India’s economic growth.”
The Digital Lending Revolution
FlexiLoans has been at the forefront of the digital lending revolution in India. The company has disbursed over ₹ 9,000 crore in loans across more than 1,500 cities and towns in India. One of the key drivers of FlexiLoans’ success in digital lending is its ability to use alternative data sources from e-commerce platforms, payment systems, and other non-traditional data points to assess creditworthiness. This has allowed the company to approve loans in as little as 48 hours, making it easier for borrowers to access funds when they need them most.
The digital lending model employed by FlexiLoans is particularly beneficial for women entrepreneurs, many of whom may not have traditional credit histories or the necessary collateral to qualify for conventional loans. By leveraging digital platforms and alternative data, FlexiLoans can provide financing to underserved women entrepreneurs, helping them grow their businesses without relying on traditional credit assessment methods.
Popular Sectors Among Women Entrepreneurs
FlexiLoans has also observed a notable trend in the types of businesses women entrepreneurs are involved in. Many women borrowers are seeking loans to support ventures in industries such as readymade garments, FMCG items, medical stores, electrical goods/fittings, and cosmetics. These sectors are witnessing significant growth in India, and women-led businesses are playing an important role in their expansion.
As India’s financial literacy continues to improve, more women are turning to digital lending options to meet their financing needs. FlexiLoans expects the demand for business loans from women-led MSMEs to continue growing as more entrepreneurs, especially in Tier 2 and Tier 3 cities, embrace digital lending platforms for their financial needs.
Conclusion
FlexiLoans’ initiative to disburse over ₹ 100 crore in loans to women-led businesses by 2025 reflects the growing importance of financial inclusion for women entrepreneurs in India. The company’s efforts to provide collateral-free loans with minimal documentation have already begun to yield positive results, with an increasing number of women borrowers turning to FlexiLoans for financial support. As digital lending continues to gain momentum and government schemes further encourage women entrepreneurs, FlexiLoans is poised to play a critical role in empowering women and fostering their contribution to India’s economic growth.
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