The researchers found clear evidence of a gender gorge in access to credit.
Female entrepreneurs have a disadvantage in securing formal loans compared to men, which points to a gender gorge in access to credit, found a study by Goa Institute of Management (GIM) and recommended that digital technology can help limit this gap.
The study conducted is published in the prestigious magazine “Applied Economics”.
The researchers investigated the information about companies owned by women in the unorganized sector. They studied the loans by these companies from banks, government institutions and similar formal financial sources.
According to civil servants, the data monster they studied consisted of more than 4 Lakh unorganized sector companies, and from the annual survey of the National Sample Survey Office (NSO) of 2022-23 of National Sample Survey (NSSO) of the companies of the non-collection sector (Asuse).
The researchers found clear evidence of a gender gorge in access to credit. The research team also showed that when women’s companies in the unorganized sector use digital technology such as internet banking and other financial services, it helps to reduce gender gap in access to credit.
“Financial institutions play a very important role in stimulating entrepreneurship and creating jobs in the informal sector of India. Every inequality in the style of caste, gender, etc. In the loans they granted, will probably limit it well that they can achieve with the credit that is expected. What is the technological financial technology while Digital Financial is the time of the Tace of Digital for the Tace of Digital, the Tace of Digital is to be the time of the Tace of Digital, which is the time of the time of the time of the time of the Technology Technology is to be the time of the time of the time of the time of the Technological Technology. Then that of knowledge differences.
“At the bottom of the pyramid we have to invest just as much time, effort and money in stimulating financial literacy as when creating new financial technology,” said Ashay Kadam, professor, bank, insurance and financial services, GIM.
Although various research has investigated challenges in the past with which women’s companies are in the hands of access to formal credit, this research continues and investigates the approaches that can be taken to overcome these challenges.
“Access to formal financing is essential for the development and growth of women’s entrepreneurship in India. While female owners of women are confronted with disadvantages in securing formal loans compared to mechanic owners, the use of digital technology offers a spark of hope in bridging this gender gorge,” said Swarna Parameswaran, Gimaran, Gimaran.
“In particular, the use of digital banking and financial service mechanisms makes higher formal financing access to female entrepreneurs by reducing information – asymmetry and the need to visit financial institutions several times. Steps to increase awareness about the benefits of digital financial technologies and promoting a greater use of these services will appeal by women who are added.
The researchers have recommended that policy and practices of the banking supervision policy can be re -examined with the specific purpose of reducing gender differences in access to formal credit.
Secondly, special schemes could be designed and government funds were assigned to promote the use of digital technology for women’s ownership in the unorganized sector.
Published on August 17, 2025
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