Our investment is helping women entrepreneurs in India get the credit needed to scale their operations and achieve sustainable growth.
In India, only 11 per cent of micro and small enterprises (MSEs) have access to credit, as most lack proper documentation and security. At the same time, women in particular struggle to get loans because they lack the collateral and credit history banks usually ask for – meaning banks view them as ‘risky’ borrowers. This is a misconception, as the International Finance Corporation confirms women and women-owned businesses have fewer non-performing loans than men. This suggests that more financial institutions should tailor products and services to women’s customer segments.
To help overcome these biases, and increase the level of financing made available to women and MSEs, we take part in risk-sharing and credit guarantee programmes that encourage more lending to women-led and owned businesses. In 2024, we made a £7 million investment in a guarantee programme managed by FinReach Solutions, a woman-founded company facilitating credit to MSEs in India.
Through our credit guarantee programme, we partially guarantee the repayment of loans extended to MSEs that would otherwise find getting credit difficult, many of which are owned and run by women. As a result, more women entrepreneurs can get the financing they need to scale their operations and achieve sustainable growth. Our guarantee programme through FinReach is expected to help guarantee a lending pool of $20 million, which is expected to reach around 6,000 MSEs and benefit 30,000 employees.
