Despite initiatives, women MSMEs continue to struggle with access to loans

India’s MSMEs and Women’s Participation

• MSMEs contribute 30% to India’s GDP in 2024, with a goal to increase to 35%.

• Women-led MSMEs make up 20% of all registered MSMEs, but their participation is low.

• Women face significant discrimination in fund disbursement, with a credit gap of 35% compared to 20% for men.

• The Pradhan Mantri MUDRA Yojana (PMMY) only directed 41% of sanctioned amount towards women-led MSMEs.

• Underperforming schemes push women to rely on informal credit sources.

• The Udyam Assist Portal helps women-run micro-enterprises qualify for priority sector lending.

• Women entrepreneurs face challenges accessing formal credit due to lack of awareness and limited access.