Kinara Capital commits to disbursing INR 400 crores in FY24 to women-owned MSMEs under HerVikas Business Loans Program for Women Entrepreneurs

May 23, 2024
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HerVikas Business Loans have led to INR 125 crores in Incremental Income Generation for more than 4000 Women Entrepreneurs in the MSME Sector 

Kinara Capital, a leading fintech in India, has announced an allocation of INR 400 crores in FY24 for its HerVikas discounted business loans program for women entrepreneurs. This year marks the 4th anniversary of the HerVikas program, and the latest allocation brings the total commitment to date to INR 700 crores, solely dedicated to driving financial inclusion of micro-small-medium enterprise (MSME) women entrepreneurs. Available in 100+ cities in India, the HerVikas program aims to drive financial inclusion of MSME women entrepreneurs who contribute to 20% of the sector.

Driving impact for women-led MSMEs

The success of HerVikas is a shining example of how financial inclusion can empower women entrepreneurs and contribute to the growth of local communities. It has been a resounding success since its launch in FY20 as Kinara exceeded its previous disbursement goal of INR 300 crores from FY20-23, with 38% higher disbursement of INR 414 crores across 4,305+ HerVikas business loans for women-owned MSMEs.

The impact of the HerVikas program has been significant. Since its launch, it has led to over INR 125+ crores in Incremental Income Generation for the women entrepreneurs and over 32,680+ jobs supported in local economies. Out of these, over 2,535 are new jobs that have been created, with 20% of these positions being filled by women workers and 61% by first-time wage earners. These numbers reflect the importance of financial inclusion of women entrepreneurs in India, especially in the MSME sector. This year, with additional allocation, Kinara is taking a step forward in its mission to promote gender equity and financial inclusion.

The importance of Gender Lens Investing (GLI)

The HerVikas program’s discounted business loans have helped women entrepreneurs overcome the financial challenges they face. These loans have enabled women entrepreneurs to invest in their businesses, purchase equipment, expand their operations, and hire more employees. By supporting women entrepreneurs, Kinara Capital is creating a ripple effect in local communities, stimulating economic growth and job creation.

HerVikas is a successful example of Gender Lens Investing (GLI) approach. Kinara Capital recognizes that women entrepreneurs face several challenges, including limited access to credit, social and cultural barriers, and lack of support. By investing in women entrepreneurs, the company is helping to break down these barriers and create opportunities for women to succeed. The program’s reach has been crucial in promoting financial inclusion for the underserved MSME sector where traditional banking channels are not easily accessible.

This is important because while only 20% of MSMEs in India are women-owned, 40% of the MSME credit gap, estimated at $158 billion, is from women entrepreneurs. Approximately 90% of women entrepreneurs rely on informal sources of funding and most are unable to scale their business from micro- to small- level, clearly indicating there are many systemic challenges barring their growth. 

In addition, in India, less than 16% of women own land which immediately restricts their borrowing potential. Kinara has addressed the topmost hurdle for women entrepreneurs by providing collateral-free business loans available from INR 1 lakh to INR 30 lakhs to over 300 sub-sectors across Manufacturing, Trading, and Services sectors. More importantly, the use of AI/ML has removed human bias from credit-decisioning which addresses a significant pain point of women entrepreneurs who are systematically facing discrimination from lenders.

Grow your MSME with collateral-free business loans

Looking ahead

On the occasion of the announcement, Kinara Capital’s founder and CEO Hardika Shah stressed the company’s focus on driving gender parity and financial inclusion, stating “HerVikas has firmly established the importance and the viability of women-centric financial services in India. With approximately 100 crores disbursed each year, we are now doubling down and pledging INR 400 crores disbursement in FY24 solely for MSME women entrepreneurs.

This will lead to reaching 10,000 HerVikas discounted business loans by next year. Entrepreneurship is a powerful way to aim for gender parity. Financial independence of women immediately gives them agency and leads to betterment of families and communities. Women Entrepreneurs can rapidly drive economic and social change and are critical to India’s ambition of becoming a $5 trillion economy. ”


Kinara Capital‘s HerVikas program is a powerful example of how financial inclusion can promote gender equity and empower women entrepreneurs in India, especially at the last mile.  

As Kinara continues to expand its program, more women entrepreneurs will have access to affordable credit and the opportunity to grow and succeed. Given Kinara’s presence across several regions, MSME women entrepreneurs in Andhra Pradesh, Gujarat, Karnataka, Maharashtra, Tamil Nadu, Telangana, and UT Puducherry can benefit from the HerVikas program.

Women-owned MSMEs can apply for a Business Loan under the HerVikas Program starting with a quick 1-minute eligibility check through myKinara app, which is available in 7 vernacular languages. Kinara Capital has a fast Business Loan process and the amount will get disbursed in the applicant’s bank account within 24-hours. Kinara also provides doorstep customer service to MSME entrepreneurs who are interested in learning more about Kinara’s Business Loans and need assistance to apply. Also, we have a dedicated customer support team available between Monday – Friday (9.30 AM – 6.00 PM) 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.

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