65% of self-employed women in urban Indian metros have not taken a business loan: Survey by CRISIL and DBS Bank India
39% rely on personal savings to fund their businesses
It examines their sources of business funding, banking habits, digital payment preferences, workforce dynamics, and adoption of sustainability measures within their businesses. Additionally, the report delves into challenges such as perceptions of gender bias and analyses how factors like age, income level, and geographical location shape their decisions. It identifies critical areas where women entrepreneurs seek support and opportunities for business enablement.
Sources of Business Funding:
65% of self-employed women in Indian metros have not taken a business loan, with 39% relying on personal savings to fund their enterprises. Among those who have obtained loans, bank loans were the primary choice, preferred by 21%. Women entrepreneurs often use personal assets for collateral, with 28% leveraging personal property and 25% turning to gold—reflecting their risk-averse approach to investments. 64% of respondents who use gold as collateral predominantly invest in safer options like savings accounts and gold.
Awareness of government schemes:
The survey revealed a significant awareness gap regarding government schemes, with 24% of respondents indicating they were unaware of available options. Additionally, 34% stated they had not utilised any government scheme for their businesses. To bridge this gap, the DBS Foundation has launched a robust training program in partnership with Haqdarshak to boost financial literacy and empower women to access government entitlements and financial services. The program targets 200,000 marginalised beneficiaries, with women comprising 80% of the participants.
Banking products:
39% of women entrepreneurs use cash credit (CC) and overdraft (OD) facilities, followed by corporate credit cards (25%) and property-backed term loans (11%). 39% of respondents cited competitive interest rates and flexible repayment terms as key factors influencing their choice of bank for loans.
Support beyond financial assistance:
Beyond financial support from banks, women entrepreneurs expressed a desire for mentorship (26%), support in navigating government schemes (18%), and assistance in digitalising financial processes (15%). In terms of business enablement, 18% were interested in women-based communities, and 13% sought access to industry-specific financial data and benchmarks.
Commenting on the report, Divyesh Dalal, Managing Director & Head – Global Transaction Services, SME and Institutional Liabilities, DBS Bank India, said, “The insights from our latest ‘Women and Finance’ report highlight key areas where we can make an impact. We see opportunities to boost awareness and adoption of government entitlements through education and training. Additionally, it underscores the need to build entrepreneurial ecosystems with networking platforms and communities that foster collaboration, mentorship, skill-building, and knowledge exchange to accelerate growth for women in business. DBS Bank India goes beyond traditional banking to support entrepreneurs and be a trusted partner for SMEs and startups. We will continue working with partners like CRISIL to better understand and empower women in their entrepreneurial journeys, backed by data-driven insights.”
The bank has leveraged insights from the report to design a customised proposition for women entrepreneurs, working closely with its ecosystem partners. Through its partnership with Zaggle, DBS Bank India will offer exclusive benefits, such as discounts on Zaggle EMS, a tool that streamlines expense management. Women entrepreneurs will also receive a reduction in card issuance fees and service charges for Zaggle’s payment and tax solutions will be waived off. Additionally, through its partnership with FundEnable, the bank will organise capacity-building activities, including a knowledge series and bootcamps on fundraising, market strategies, and pitch enhancement. The bank has also partnered with India Accelerator, a fund-led startup accelerator from Gurgaon to curate special offers on co-working spaces and accelerator programs for women entrepreneurs.
Trends in digital payments:
UPI has played a pivotal role in digitising India’s financial transactions. According to the Reserve Bank of India, the share of UPI in digital payments reached close to 80% in fiscal 2024. UPI leads in the payment of business expenses, followed by mobile banking.
Pushan Sharma, Director-Research, CRISIL Market Intelligence & Analytics, said, “73% of self-employed women surveyed preferred receiving payments from customers digitally, and 87% used digital methods to pay their business expenses. UPI is the most-used mode for both receiving (35%) and paying (26%) business expenses. However, cash remains indispensable for payroll and operational expenses, used by 36% of respondents.”
Adopting sustainable business practices:
The insights underscore a growing trend toward sustainability. 52% of self-employed women in Indian metros have implemented sustainability policies in their businesses, while 14% have approached a bank for sustainability-linked finance. Encouragingly, 76% have implemented sustainable business practices, such as energy conservation, incorporating female representation on their boards, and waste reduction and recycling measures. 26% of respondents prioritise energy conservation efforts, while 24% focus on waste reduction and recycling. Additionally, 26% of self-employed women have female members serving on their boards, reflecting their commitment to gender diversity and inclusion. 13% have adopted practices related to water conservation and rainwater harvesting.
DBS Bank India aims to support holistic financial management for women, guided by insights from the Women and Finance study. This underscores how DBS embodies being a different kind of bank, enabling customers to ‘Live More, Bank Less’ in line with its brand promise. The first report released in January 2024 focused on savings, investment patterns, and behaviors among salaried and self-employed women in urban India. The second report, launched in March 2024, explored career progression, workplace policy preferences, and challenges faced by women in the workforce.
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About DBS
DBS is a leading financial services group in Asia with a presence in 19 markets. Headquartered and listed in Singapore, DBS is in the three key Asian axes of growth: Greater China, Southeast Asia, and South Asia. The bank's "AA-" and "Aa1" credit ratings are among the highest in the world. In 2024, CRISIL Ratings reaffirmed its ‘CRISIL AAA/Stable’ rating on the corporate credit facility of DBS Bank India Ltd (DBIL). The rating on the certificate of deposits programme was also reaffirmed at ‘CRISIL A1+’.
Recognised for its global leadership, DBS has been named “World’s Best Bank” by Global Finance, “World’s Best Bank” by Euromoney, and “Global Bank of the Year” by The Banker. As a different kind of bank, DBS is at the forefront of leveraging digital technology to shape the future of banking, having been named “World’s Best Digital Bank” by Euromoney and the world’s “Most Innovative in Digital Banking” by The Banker. In addition, DBS has been accorded the “Safest Bank in Asia” award by Global Finance for 15 consecutive years from 2009 to 2023. In line with its focus on responsible banking, DBS was named the Best Bank for Sustainable Finance – India by Global Finance in 2024. Additionally, DBS Bank was ranked among the top 3 on Forbes' list of the World's Best Banks in India for three consecutive years, from 2020 to 2022.
DBS Bank has been present in India for 30 years, opening its first office in Mumbai in 1994. DBS Bank India Limited is the first among the large foreign banks in India to start operating as a wholly owned, locally incorporated subsidiary of a leading global bank. As a trusted partner, DBS provides a range of banking services for large, medium, and small enterprises and individual consumers in India, focusing on a seamless customer experience that helps them ‘Live more, Bank less’. In November 2020, Lakshmi Vilas Bank was merged with DBS Bank India Limited. DBS Bank India now has a network of ~500 branches in 19 Indian states.
DBS is committed to building lasting relationships with customers as it banks the Asian way and understands the intricacies of doing business in the region’s most dynamic markets. Through the DBS Foundation, the bank creates impact beyond banking by supporting businesses for impact: enterprises with a double bottom-line of profit and social and/or environmental impact. DBS Foundation also gives back to society in various ways, including equipping underserved communities with future-ready skills and helping them to build food resilience.
With its extensive network of operations in Asia and emphasis on engaging and empowering its staff, DBS presents exciting career opportunities. For more information, please visit www.dbs.com.
About CRISIL Market Intelligence & Analytics
CRISIL Market Intelligence & Analytics, a division of CRISIL, provides independent research, consulting, risk solutions, and data & analytics. Our informed insights and opinions on the economy, industry, capital markets and companies drive impactful decisions for clients across diverse sectors and geographies. Our strong benchmarking capabilities, granular grasp of sectors, proprietary analytical
frameworks and risk management solutions backed by deep understanding of technology integration, make us the partner of choice for public & private organisations, multi-lateral agencies, investors, and governments for over three decades.
About CRISIL Limited
CRISIL is a leading, agile and innovative global analytics company driven by its mission of making markets function better. It is India's foremost provider of ratings, data, research, analytics and solutions with a strong track record of growth, culture of innovation, and global footprint. It has delivered independent opinions, actionable insights, and efficient solutions to over 100,000 customers through businesses that operate from India, United States (US), the United Kingdom (UK), Argentina, Poland, China, Hong Kong, Singapore, Australia, Switzerland, Japan, and the United Arab Emirates (UAE). It is majority owned by S&P Global Inc, a leading provider of transparent and independent ratings, benchmarks, analytics and data to the capital and commodity markets worldwide.
For more information, visit www.crisil.com
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