A survey by DBS Bank India and Crisil revealed that 39 per cent of self-employed women in Indian metros rely on personal savings to fund their enterprises, with 65 per cent not taking a business loan. The reliance on personal funds increases with age, with 52 per cent of women over 45 using their own savings compared to 36 per cent aged 25-35. Bank loans were the primary choice for those who obtained loans, while 7 per cent opted for funding from venture capitalists, angel investors, private equity, or fintechs. The data underscores the financial challenges faced by accessible and affordable financing options.
The report mentions that women entrepreneurs in India use personal assets as collateral, with 28 per cent leveraging personal property and 25 per cent turning to gold. 64 per cent invest in safer options like savings accounts and gold, 39 per cent use cash credit, overdraft facilities, corporate credit cards, and property-backed term loans. Competitive interest rates and flexible repayment terms influence loan choices. UPI has digitized India's financial transactions, with 73 per cent preferring digital payments and 87 per cent using digital methods for business expenses. Cash remains essential for payroll and operational expenses.
The survey was conducted on 400 self-employed women in 10 Indian cities that found a significant awareness gap about government schemes, with 24 per cent unaware of available options. However, 52 per cent have implemented sustainability policies, and 76 per cent have adopted sustainable practices. Women are also more committed to gender diversity, with 26 per cent having women on their boards and 37 per cent employing teams with over 40 per cent women. Retirement is a top priority, with 66 per cent saving for retirement and 38 per cent offering benefits.
