Women SMEs Get Collateral-Free Loans

Fintech Initiative Enables Rs 10,000 Crore in Loans for Women Entrepreneurs

“One of the biggest challenges for women entrepreneurs has been the traditional requirement of collateral and a male co-applicant in lending systems. Through ProgShakti, we sought to remove these structural barriers by offering unsecured working capital loans that women entrepreneurs can access independently,” Shrivastava stated. Women borrowers currently account for 17 percent of the company’s overall portfolio, growing at 40 percent year-on-year, with nearly 90 percent originating from Tier 2 and Tier 3 markets. Data from the Small Industries Development Bank of India highlights that women entrepreneurs face a 35 percent credit gap compared to 20 percent for men.

Malaysia Bank Launches OCBC Women Unlimited Programme

In Malaysia, OCBC Bank (Malaysia) Bhd launched OCBC Women Unlimited, a programme providing financing, networking, and knowledge-sharing opportunities for women entrepreneurs. The initiative offers collateral-free financing of up to RM600,000 at preferential rates, supported by a RM100 million Islamic Portfolio Guarantee-i agreement between its Islamic subsidiary, OCBC Al-Amin Bank Bhd, and Credit Guarantee Corporation Malaysia Bhd.

“One of the key challenges women entrepreneurs face is securing funding, often due to limited collateral. This restricts their ability to expand or innovate. Through Women Unlimited, we are tackling this issue head-on by offering collateral-free financing to unlock new growth opportunities,” said OCBC Malaysia chief executive officer Tan Chor Sen. Women comprise 21 percent of the bank’s small and medium-sized enterprise portfolio, up from 13 percent in 2020. The programme, initially rolled out in Singapore, includes mentorship and peer learning platforms.

Bangladesh Central Bank Unveils Loan Guarantee Scheme

The Tbsnews introduced a loan guarantee scheme allowing women entrepreneurs to borrow a maximum of Tk50 lakh with central bank backing. The minimum loan amount under this facility is Tk5 lakh, covering both working capital and term loans. Participating banks and financial institutions are required to pay an annual fee of 1% for the guarantees, while no fees are charged to the customer.

The guarantee is tied to a Tk3,000-crore refinancing scheme where women entrepreneurs can access loans at a 5% interest rate. Central bank data indicated that out of Tk2.2 lakh crore disbursed in the cottage, micro, small, and medium-sized enterprise sector by the end of 2022, women received only Tk10,000 crore, accounting for less than 5 percent. Central bank officials noted that women frequently lack assets in their name to offer as collateral, limiting their access to institutional credit.

Private Sector Foundation Uganda Introduces Non-Collateralized Loans

In Uganda, the Private Sector Foundation Uganda (PSFU) introduced non-collateralized loans through a catalytic fund targeting youth, women, and high-growth small and medium-sized enterprises. Damali Ssali, PSFU chief programs and projects officer, explained that asset requirements have traditionally locked many businesses out of the credit market. World Bank data showed that only 14.2 percent of Uganda’s private sector accessed credit in 2020.

Supported by the Mastercard Foundation and starting with an initial capital of $100 million, the PSFU fund requires no collateral, features interest rates below market rates, and applies sector-specific repayment terms. PSFU executive director Stephen Asiimwe stated that the initiative is part of the foundation’s Strategic Plan 2022–2025 aimed at inclusive and sustainable private sector development.