Many Women Entrepreneurs in Small-Town India Still Need Male Help to Get Loans: Report

By: WE Staff | Monday, 30 June 2025

• In tier 2 and tier 3 towns, more than half of female entrepreneurs still obtain formal credit through male family members 

• Many women find it difficult to obtain loans on their own, despite growing aspirations 

Despite their growing aspirations, more than half of female entrepreneurs in India's tier 2 and tier 3 towns still rely on male family members to obtain formal credit, according to a recent Tide India report. This highlights enduring structural barriers. 
 
The study found that 52 percent of women surveyed depend on male family members to obtain loans, indicating a pervasive gender bias in India's financial system. Their financial independence is restricted by this gatekeeping, which also illustrates the larger institutional dearth of support for women-led businesses in smaller communities. 

More than 1,300 women between the ages of 18 and 55 who currently operate or hope to launch businesses in non-metropolitan areas were polled by the UK fintech company Tide. According to the results, women are eager to advance and self-assured, but they encounter major obstacles when trying to obtain funding, establish networks, and become more visible. 

Even when operating successful businesses, over half of the respondents believed that lenders considered them to be less creditworthy than men. Access to funding was further limited by the fact that many lacked official records or collateral. A gap between perceived priorities and growth needs was evident as only 12 percent of respondent’s prioritized digital skilling, despite 70 percent of respondents being eager to advance their knowledge of digital tools, marketing, and finance. 

Furthermore, nearly half of women felt underrepresented in public narratives, and 86 percent said they had no access to entrepreneurial networks. A change in India's entrepreneurial landscape is indicated by the report's encouraging finding that 90 percent of the companies are run by Gen Z and millennial women, with 52 percent of them working in the digital industry.