How Business Loans can Drive Growth and Financial Inclusion for Women?

May 23, 2024
Updated on

Do you know that Micro Small and Medium Enterprises (MSMEs) owned by women act as a catalyst for social change as they help empower women and promote gender equality? 

Women have traditionally been assigned to domestic work, severely limiting their ability to step out of their homes and pursue other aspirations. While sections of Indian society still foster these beliefs, there has also been a vast overhaul in how women and their capabilities are perceived. Over the years, millions of women have joined the workforce in various capacities and demonstrated that they could perform just as well as their male counterparts. This shift in perception also means more women can now take up jobs and start businesses, earning them valuable expertise and financial independence.

Every business requires sufficient capital to grow and expand. Hence, Business Loans for Women can come in handy for women-owned businesses at the time of an emergency. With access to capital, women entrepreneurs have the resources to hire additional employees, purchase inventory, and develop new products and services. Women-owned businesses can also use Business Loans to invest in marketing and advertising, which can help attract new customers and increase revenue. Furthermore, Business Loans can help women-owned businesses to bridge the gap between short-term cash flow needs and long-term growth plans. As a result, women-owned businesses can compete on a larger scale, increase their market share, and improve their financial stability. 

In this article, let’s explore how applying for Collateral-free Business Loans for Women can drive growth and financial inclusion for women. Before going deep into it, let’s quickly read the growth journey of women-owned businesses.

Grow your MSME with collateral-free business loans

Growth Journey of Women-owned MSMEs

The growth journey of women-owned MSMEs has been an inspiring one. From humble beginnings in the late 19th century to the present day, women have been able to overcome numerous obstacles and grow their businesses to be successful and prosperous. Women-owned MSMEs have had to overcome the era’s societal norms and fight for the right to own and operate their own businesses. Despite the fact that women had to struggle to be taken seriously, they still managed to make their mark.

In the early 20th century, women-owned MSMEs gained recognition and success as the number of female entrepreneurs increased significantly. This was mainly due to the rise of women’s rights and the ability to pursue education and employment opportunities. Today, women-owned MSMEs are flourishing and making a huge impact on the economy. They are creating jobs and providing valuable services that benefit the community. They are also helping to level the playing field in the business world, as they are no longer restricted to certain industries. 

The growth journey of women-owned MSMEs should be celebrated and admired. Despite the challenges they faced, they have come out strong and continue to be an integral part of society. It is inspiring to see how far they have come, and it is important to remember that their successes make it possible for others to follow in their footsteps.

Ready to know why Unsecured Business Loan is important for women entrepreneurs? Well! Let’s get started. 

The Role of Influence and Partnerships in Promoting Financial Inclusion for Women

Achieving women’s financial inclusion relies on influence and partnerships. It ensures women are not left on the sidelines. As the digital revolution sweeps across the globe, financial inclusion has shed its traditional banking skin, embracing digital access. This powerful tool offers a promising route to narrow the gender gap.

Influence and Partnerships: Sparking a Transformation

Getting everyone access to financial tools, especially women, is super important. Two big things can help: powerful voices and working together.

  • Role Models and Awareness Campaigns: Having famous people and targeted campaigns can get people thinking differently and make it easier for women to get involved in finances.
  • Working Together: NBFCs, governments, banks, and tech companies can all team up to create new and better ways for women to save, borrow, and manage their money.

Digital Inclusion: An Empowering Enabler

Digital Financial Inclusion emerges as a potent enabler, offering women greater convenience, affordability, and accessibility to financial products and services.

  • Phone Banking & Apps: Tools like mobile banking, digital wallets, and online payment platforms can help women manage their money anywhere, anytime. This is especially helpful in areas where banks are far away.
  • Championing Collaboration: Governments can unlock significant progress by partnering with influential figures and diverse organisations. This teamwork creates a powerful force that streamlines access to financial services for women. It allows them to save, borrow, and manage their money easily.
  • Financial Powerhouse: When women hold the reins of their finances, they build personal security for themselves and their families. They also contribute to a more robust economy overall.

Why Collateral-free Business Loans for Women Is a Favourite Option for MSME Women Entrepreneurs?

Collateral-free Business Loans for Women can help drive financial inclusivity and growth by providing access to capital and resources for women-owned businesses. Women are often disproportionately excluded from traditional financial services, so having access to Business Loans can help level the playing field. Unsecured Business Loans can also give women entrepreneurs the necessary funds to expand their businesses and increase revenue. By increasing access to capital and resources, unsecured Business Loans for Women can help create more economic opportunities for women and promote financial inclusivity and growth.

MSME women entrepreneurs face a disproportionate amount of difficulty while getting access to formal credit. According to studies, 90% of women entrepreneurs face rejection when seeking loans from financial institutions like banks. This presents an additional hurdle for women, who already struggle to have the wherewithal to enter a male-dominated area like a business. The way to cut through these issues would be to make Business Loans easily accessible to women entrepreneurs. 

Non-banking Financial Companies like Kinara Capital have filled this gap in the market by coming up with specific solutions for women. Kinara is an RBI Registered Systemically Important NBFC company in India that provides Unsecured Business Loans to MSME entrepreneurs within 24-hours. Kinara’s specially designed HerVikas Business Loans take away the main debacle for women entrepreneurs since they often don’t own assets that can be leveraged as collateral. 

Furthermore, Business Loans for Women can help to create a more diverse and inclusive business environment. By providing access to capital and resources, these loans can help to ensure that women are better represented in the business world and that their voices are heard. This can help to create a more equitable and just business environment, where everyone has the opportunity to succeed. This can help to reduce poverty and increase economic prosperity in communities.

Kinara’s Business Loans can provide MSMEs with more flexibility than other financing options. By providing easy access to financing, Kinara’s Business Loans can help to bridge the gender gap in business ownership and open the door to more women-owned businesses. Some of the major advantages of a Business Loan are given below.

Advantages of Kinara’s HerVikas Business Loans for Women Entrepreneurs

  1. Collateral-free Business Loans

Since capital access can drive business growth and success, there is a clear advantage for women MSME entrepreneurs to take advantage of the benefits they offer. Kinara’s HerVikas Program is a great resource, to begin with. With this program, women borrowers can receive financial support and more flexibility in handling their business operations without the need to leverage any assets. Under this scheme, women-owned businesses engaged in the trading, manufacturing and services sector can get a 1% discount upfront for various loans from ₹1 Lakh to ₹30 Lakhs. 

  1. Minimal Documentation

Kinara doesn’t require extensive documentation to provide Business Loans for Women MSME owners. Therefore, women-owned MSMEs can focus on optimum capital utilisation to fulfil their business goals without going through the process of visiting the lender’s office or branch, or the time-consuming documentation procedures.

  1. Sizable Sanction up to ₹30 Lakhs

Kinara Capital provides HerVikas Business Loans up to ₹30 Lakhs to Registered women-owned MSMEs from Karnataka, Gujarat, Maharashtra, Tamil Nadu, Andhra Pradesh, Telangana and UT Puducherry.

  1. Easy Application Process

Women owned MSMEs can easily get HerVikas Business Loans online through myKinara App. It will let them experience a quick and convenient method of acquiring a Collateral-free Business Loan with easy approval. Women MSME owners will have the entire sanctioned amount disbursed in their mentioned bank account within 24-hours.

  1. Doorstep Customer Service

Kinara provides doorstep customer service to all their customers in their preferred vernacular language to make the loan application process easier.

Why Women Entrepreneurs in India Lag Behind

Even as women excel across various avenues in the country, the number of women entrepreneurs in India has not kept pace with this evolution. This is especially true when it comes to MSME business for women. Out of the 63 million small businesses in India, only 20% are run by women. Even among the MSME women entrepreneurs in the country, most of them own micro-enterprises.

Part of the reason for this huge disparity between the number of male and female business owners in the country is the general mindset and societal bias that exists. Women are considered by many to be incapable of starting and running a business successfully. This results in many of them being discouraged from taking the entrepreneurial plunge. Those that do might face significantly more resistance and hurdles than a man would. One major issue that plagues MSME women entrepreneurs is the lack of capital. Since many Indian women don’t own property, they have nothing to leverage to raise the investment amount to start or grow a business.

Another reason is, due to cultural norms, women often have to put family responsibilities ahead of their businesses, leaving them with limited time and energy to dedicate to their businesses. Furthermore, women often lack the technical knowledge and skills needed to effectively manage a business and are often unable to access traditional networks and sources of funding due to the lack of social connections and cultural norms. All these factors contribute to the lag of MSME women entrepreneurs in India.


Women MSME entrepreneurs, when armed with the right tools, can work wonders at both the social and economic levels. Bringing women into the fold of formal lending drives financial inclusion and empowerment, and they can further create jobs for other women in the community. Women becoming financially self-reliant creates multi-generational change at the family and community levels. Applying for Business Loans for Women can be the first step towards this transformation.

Business Loans for Women are an important tool for driving financial inclusivity and growth. It can provide several opportunities for MSME women entrepreneurs to access capital that may have been previously unavailable. This can be especially helpful for businesses that are looking to grow. With access to capital, women are able to invest in their businesses and create long-term growth and financial stability. The loan amount can be used for various purposes including paying wages, expansion, as well as for day-to-day operations. 

There are numerous NBFCs India that provides business Loans for Women. Kinara Capital is one of the leading among them. This last-mile lending firm helps women-owned businesses by providing fast access to capital. It creates an opportunity for more people to participate in the economy, which can lead to increased economic growth and financial stability. Registered MSME owners can evaluate their eligibility for a loan in just 1-minute by starting the digital-first application process on the Kinara Capital website or by downloading myKinara App. If you qualify for an MSME Loan from Kinara, the loan amount will be disbursed digitally to your bank account within 24-hours. 

We have a dedicated customer support team available between Monday – Friday (9.30AM – 6.00PM) at our toll free number 1800-103-2683 for any questions or assistance. This ensures that entrepreneurs can get the help they need throughout the loan process.


    1. What are some strategies to promote financial inclusion for women?

    To promote financial inclusion for women, we need to take several approaches. First, inspiring women through role models and awareness campaigns can encourage them to handle their finances. Second, strong partnerships between governments, banks, and tech firms help create tailored solutions for women. Third, giving access to digital tools like mobile banking helps women manage money from anywhere. Lastly, teaching financial literacy helps women make better financial choices confidently.

    2. How does financial inclusion for women contribute to economic development?

      Empowering women financially is an economic engine. When women can control their money, amazing things happen! The economy gets a big boost because more women start businesses, save more, and invest. This leads to people spending more and businesses growing, which creates jobs and makes everyone better off!

      3. What are some innovative approaches to promoting financial inclusion for women?

      Sparking financial inclusion for women involves creative strategies. Offering smaller loans and savings accounts designed for women that make saving easier. Another approach is to make financial services easy to access. Mobile banking and digital wallets let women bank anywhere, anytime. Also, teach women about money management. Workshops can help women make smart financial choices.

      4. What are the key challenges in achieving financial inclusion for women in rural areas?

      Getting everyone in rural India to use banks and other financial tools isn’t easy. One big hurdle is privacy. Many women worry their personal information won’t be kept secret by banks and financial institutions. Another significant barrier is the complexity of paperwork. Rural populations might feel intimidated by the documentation required to open accounts or access financial products, lacking the confidence to navigate the formalities.

      5. What are the benefits of applying for HerVikas Business Loans for women? 

      Applying for myKinara Business Loans are not required to submit any property collateral to qualify for a business loan from Kinara Capital. By providing minimal documentation, you can avail the business loan with a 1% discount upfront without submitting any separate application. 

      The process can be carried out online. If you need assistance in the loan application process online, you can opt for doorstep customer service, in which a Kinara representative will visit you at your place of business to provide information and help you take the loan application forward.

      6. Why are Business Loans for women important? 

      Business Loans for Women are important because they can help to increase economic opportunities for women, create more jobs, and promote financial inclusion. Additionally, it can provide access to fast credit and support that women may not otherwise have access to.

      7. Who is eligible for HerVikas Business Loans for women? 

      Business Loans for Women are typically available to female entrepreneurs and small business owners who are into manufacturing for 1+ years, trading or services sectors for 2+ years can apply for Business Loans at Kinara Capital. 

      8. How can I apply for HerVikas Business Loans for women? 

      To apply for HerVikas business loan with Kinara Capital, simply download the free myKinara App from the Google PlayStore and check your loan eligibility in just 1-minute. If you qualify for a business loan, you can submit the necessary KYC documents. The loan amount is transferred into the mentioned bank account within 24-hours after verifying the documents. 

      9. How can I use HerVikas Business Loans for my business? 

      You can use HerVikas Business Loans for Women for various purposes, such as expanding operations, hiring employees, purchasing equipment, etc.

      Check your Eligibility in 1-minute!

      Check your Eligibility in 1-minute!

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