Progcap Empowers Women Entrepreneurs with Rs 10,000 Crore Credit

Progcap's ProgShakti initiative has provided over Rs 10,000 crore in collateral-free loans to women entrepreneurs since March last year, highlighting the challenges women face in accessing financing. With loans of up to Rs 10 lakh, the initiative supports women-led small businesses, 90% from Tier 2 and 3 markets.

Fintech firm Progcap announced on Sunday that its ProgShakti initiative has extended more than Rs 10,000 crore in loans to women entrepreneurs since its launch in March last year. ProgShakti offers collateral-free loans up to Rs 10 lakh to support women-led small and medium enterprises.

Co-founder Pallavi Shrivastava highlighted the program's success in reaching 17% of Progcap's portfolio, growing at a 40% annual rate, with most beneficiaries from Tier 2 and 3 cities. The initiative addresses the challenge of collateral and male co-applicant requirements in traditional lending.

The Small Industries Development Bank of India (SIDBI) notes a 35% credit gap for women entrepreneurs compared to 20% for men, emphasizing difficulties in obtaining institutional finance. Progcap aims to remove these barriers, encouraging financial independence for women-run businesses.

(With inputs from agencies.)