FlexiLoans to disburse Rs 100 crore to women-led MSMEs in 2025, sees 130% growth in women borrowers

Supporting MSMEs

FlexiLoans, a digital lending company, plans to disburse over Rs 100 crore in loans in 2025 to empower women-led micro, small, and medium enterprises (MSMEs).

This initiative is aimed at bridging the credit gap for women entrepreneurs, particularly in Tier 2 and 3 cities, where the company has observed significant growth, according to a press release.

FlexiLoans said it has disbursed over Rs 500 crore in loans to women entrepreneurs since its inception, reflecting a 2.3x increase in annual women borrowers between 2019 and 2024.

This rise underscores the growing participation of women in India’s entrepreneurial ecosystem, with nearly 70 percent of female borrowers hailing from smaller towns and cities, FlexiLoans said.

Despite women-owned businesses in India having the potential to contribute over $280 billion to the country’s GDP by 2025, access to formal credit has remained a major hurdle.

A McKinsey report highlighted that only 10 percent of women entrepreneurs in India have access to formal financing. With over 8 million women-led MSMEs in the country, the demand for business loans is set to grow significantly, FlexiLoans said.

The company’s data revealed that the average loan amount taken by women entrepreneurs has surged by 81 percent in five years, from Rs 4.04 lakh in 2019 to Rs 7.31 lakh in 2024. This growth signals increased financial confidence among women-led businesses, aided by government initiatives such as the Stand-Up India Scheme and MUDRA Yojana, it said.

The borrower profile

Women entrepreneurs availing loans from FlexiLoans predominantly fall within the age group of 31-40, followed closely by those aged 41-50. The majority of these borrowers operate in the wholesale and retail sector, including businesses in readymade garments, FMCG items, medical stores, electrical goods, and cosmetics. The average loan tenure has remained steady at 26 months, indicating financial stability among borrowers, it said.

“At FlexiLoans, we are committed to breaking financial barriers for women entrepreneurs across India. By providing easy and quick access to capital, we aim to fuel the aspirations of women-led businesses and contribute to India’s economic growth,” said Ritesh Jain, Co-Founder of FlexiLoans.

FlexiLoans has disbursed over Rs 9,000 crore in loans across 1,500+ cities and towns, leveraging alternative data sources from e-commerce and payment platforms to expedite loan approvals within 48 hours.