A survey of 400 self-employed women by Crisil and DBS Bank India on Monday said bank loans were the preferred choice of 21 per cent of respondents looking to fund their business. On the other hand, as many as 65 per cent of self-employed women said they depend on personal savings or financial assistance from family or friends to finance their business.
Among other sources of funding for women-led enterprises, only 4 per cent preferred government schemes and grants while loans from NBFCs, angel/PE investors, and VC investors each were preferred by 3 per cent of respondents.
When asked about support they would like from banks beyond loans, self-employed women identified two main categories: training and business enablement. In terms of training, 26 per cent of self-employed women expressed a desire for mentorship while 18 per cent sought support in navigating government schemes and 15 per cent called for assistance in digitalising financial processes.
Importantly, lack of awareness was among the reasons for women entrepreneurs not availing of government schemes with 24 per cent of respondents indicating they were unaware of available options. Additionally, 34 per cent mentioned they had not utilised any government scheme for their businesses.
Among self-employed women who have availed government schemes, 83 per cent primarily utilise three government schemes viz., Mahila Udyam Nidhi Yojana, Stree Shakti, and Pradhan Mantri Mudra Yojana.
The survey said interest rates and repayment terms were crucial factors for women entrepreneurs to select a bank. 39 per cent of respondents highlighted competitive interest rates and flexible repayment terms as key factors influencing their choice of bank when opting for a loan.
However, a significant majority of self-employed women (64 per cent) cited challenges such as lengthy documentation, high credit score requirements, complex applications, and delayed loan approval and disbursal as their top concerns when applying for a loan.