New Delhi, July 9, 2025: Despite the proliferation of government schemes aimed at supporting women-led Micro, Small and Medium Enterprises (MSMEs), a vast majority of these businesses continue to struggle to access formal credit, according to fresh data and expert commentary.

Schemes such as MUDRA, PMEGP, Stand-Up India, and financial programs under SIDBI have been instrumental in promoting entrepreneurship among women. However, experts say they fall short of bridging the widening credit gap, particularly for first-generation entrepreneurs and those in rural areas.

According to data from the Ministry of MSME and industry reports, women-led MSMEs account for less than 6% of total outstanding MSME credit, despite forming nearly 20% of registered enterprises. The remaining majority either rely on informal financing or are entirely excluded from the credit ecosystem.

“The systemic barriers are deeply entrenched. Banks often perceive women-led ventures as high-risk and ask for collateral, even when schemes are designed to be collateral-free,” said an MSME policy analyst.

In 2024–25, only 18% of beneficiaries under the MUDRA Yojana were women entrepreneurs, and even fewer managed to secure loans exceeding ₹5 lakh, despite significant demand. This reflects the disconnect between policy intent and ground-level implementation.

Experts highlight issues such as lack of awareness, limited digital and financial literacy, and insufficient handholding support as key deterrents to formal credit access.

The government has taken note of the gap. In Budget 2025–26, the Finance Minister announced a ₹10,000 crore Women Entrepreneur Credit Facilitation Fund, but its rollout and impact remain to be seen.

As India pushes towards inclusive economic growth, closing the gender credit gap in MSMEs will be critical to achieving meaningful progress in financial inclusion and women's empowerment.

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