How are NBFCs championing women in business

India has come leaps and bounds since the abolishment of the caste systems and archaic traditions like the sati. But although the days when girls were deprived of an education or a life independent of her spouse are nearly out of sight, discrimination continues to be a widespread social issue across India, even today. While India claims to be developing at a rapid pace, the minute a girl crosses 25 the only question that crosses most people’s mind seems to be "When are you getting married?".

Women, filled with ambition, drive and dreams walk our city streets each day, with the world at their fingertips and more than a few challenges ahead. Your modern Indian woman is no longer restricted to what’s believed to be any woman’s ultimate goal- getting married and bearing children. They dare to dream of an education that unlocks opportunities beyond working for someone else to starting something of their own.

Women, who could be sitting on a million-dollar business idea, without the financial means to make them a reality. Their bank loan applications are often rejected for reasons like insufficient security, lack of documentation, proof of income, etc. Non-banking financial companies, on the other hand, have the flexibility and transparency necessary to deliver financial services to the financial weaker sector and more specifically women.

Women- The Next Opportunity for NBFCs

While access to education and opportunity received by women has grown significantly in the past decade, participation in the labour force has fallen from 36.7% in 2005 to 26% in 2018. Whether we attribute these number to unfair wages or unemployability, it remains an issue that’s yet to be addressed.

10% of businesses in India are run by women, with 78% of them operating in the service sector and 98% being classified as ‘micro’ enterprises. Consistent flow of credit is critical growth of this segment which has resulted in the 300,000 billion dollars gap that hinders progress. Today, women are more dexterous than ever, with an abundance of small business ideas, the knowledge and skills required and with the support of government schemes and financiers like NBFCS, the capital to get it started.

Actioning Support- Micro Finance makes a Mega Difference

The empowerment of women goes hand in hand with financial inclusion, while financial independence is the goal that wafts the flame. Women, each in their own capacity strives towards this goal today with micro financial institutions enabling their achievements. Let’s take a look at what makes NBFC the go-to source of credit for women in business:

• Flexible interest and tenure of repayment- Women with loans don’t just need to consider the funds needed for their business, but the needs of their family for food, shelter, clothing, etc. As such, adhering to strict deadlines can prove to be a problem. Contrary to the traditional banking system, the interest due on the principal and time taken by the borrower for the repayment of the loan can be customized to the individual’s needs.
• Minimal documentation- Whether a woman has chosen to path of a homemaker, or simply doesn’t have adequate documentation for a loan, it knocks them out of the running for a loan from formal sources. Loan application in most formal financial institutions is a lengthy, tedious process that involves heaps of documentation. Documentation that includes income statements, credit scores, security, etc, that the economically weaker often don’t have.
• Fast processing and disbursal- Acquiring funds in a timely manner is another aspect that makes NBFCs a tempting source of credit for women. The time take between approval and disbursal of loans is significantly less than other forms of credit. NBFCs like

Capri Global also guide their customers throughout the process to empower them to unlock their potential.

According to CIBIL, 8.6 million women get access to their first credit each year and hold an excellent average credit score of 781. The report also found these loans to be 15% more profitable than loans given to men. Women today share the financial burden of putting bread on the table and are quickly becoming the principal financial decision-makers. NBFCs see this as an opportunity to empower women who want their small ideas to make a big impact. They hope to serve this underserved segment and bridge the deficit in the flow of credit into some of the best ideas for businesses for women.

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Capri Global offer small value business loans to a wide spectrum of clients in manufacturing, trade, retail and services sectors.