Micro, Small and Medium Enterprise Finance Improving Access to Finance for Women-Owned Business in India.

Abstract

Lending to women-owned micro, small, and medium enterprises (MSMEs) as a distinct segment is still unexplored when compared to lending to MSMEs in India. Due to a lack of segmental focus and, perhaps, due to a higher perception of risk, formal financial institutions have made little effort to better understand this segment. There is a lack of awareness among bankers of the potential business opportunity presented by this segment. One reason for this is the lack of data that would help present a business case to target this emerging sector. In cases where formal institutions have created women-MSME targeted credit schemes, lack of awareness and limited outreach (especially in rural areas) has meant that the impact is limited.