Interactive Session on Access to Finance for Women Entrepreneurs

FICCI Ladies Organisation (FLO) together with EXIM Bank organised an Interactive Session on Access to Finance for Women Entrepreneurs on 22 September 2014. The workshop was organised to identify common challenges faced by women entrepreneurs and examine ways to harness integration and cooperation among financial institutions to promote women’s entrepreneurship and enhance access to opportunities for women entrepreneurs.

In her Welcome Address, Ms Neeta Boochra, President FLO said ‘Women in India have faced far greater challenges and difficulties that have resulted in restricting their growth and progress.’ She further added that ‘Investing in each of woman individually may carry a degree of risk. But investing in women collectively is not a risk at all – it’s a sure bet.’

In his Opening Remarks, Mr S Prahalathan Iyer, Chief General Manager, Exim Bank said ‘Access to finance has been one of the major factors impeding the success and growth of women owned enterprises.’ He further stated that’Several initiatives have been taken up by the government to support women entrepreneurs such as policies supporting micro-finance institutions, directives from the RBI, setting up of Bhartiya Mahila Bank etc.’

Talking about various women specific schemes, Mr Kumar Neel Lohit, General Manager, IDBI Bank said ‘There is no dearth of women specific schemes but it has not much benefited the women takers. The issue is not so much about repayment intentions but there are certain institutional aspects where a bank will see if you fit in the guidelines of a particular product.’ Talking about the socio-cultural fabric of India, which often hinders women economic growth, Mr Lohit said’In the Indian social set-up, collaterals are often not in the name of women and this is something that doesn’t encourage women entrepreneurs’ access to finance from the formal sector’.

Mr Vinod Mukhi, General Manager, Rashtriya Mahila Kosh updated about the history and objective of RMK and how it has played a crucial role in empowering women at the grassroots level. Besides this he also talked about the role the nationalized banks have played in providing finance to women as also the difficulties faced by women and the bankers.

Key Suggestions from the Workshop to improve access to finance for women entrepreneurs

• Special counters in all nationalized banks that cater to women
• Mandatorily at least 5%-7% of the loans be disbursed only to women
• A handy booklet or webpage that compiles all women specific schemes/policies.
• Credit history with the card to be dissociated with the credit history of the bank/loan.
• Banks can have mentors for women seeking loans to guide them in preparing project reports and business plans. This will give them the right Launchpad.
• Need to change the mindset of bank officials towards women seeking loans
  Financial literacy programs and training to women entrepreneurs along with access to financial products for up scaling.
• Media/Communication campaign which tells women at the grassroots about the schemes of the banks.