India’s Economic Survey 2024–25 highlighted a concerning statistic: only 20% of MSMEs in the country are owned by women. While government initiatives aim to improve formalization, credit access, and skill development, social enterprise incubator Villgro is taking a proactive approach to bridge the gender financing gap through innovation.
As FY 2025–26 begins, Villgro announced that its innovative credit solutions, created with its partners, have enabled 106 women micro-entrepreneurs across India to access business loans. These women, many of whom were once deemed ‘unbankable’, have now gained access to funding that allows them to build, sustain, and grow their enterprises.
Insights from ‘Beyond the Numbers’ Report
Villgro’s recently released “Beyond the Numbers” study paints a stark picture:
- Women entrepreneurs receive only 5% of total commercial financing in India
- Yet they show consistently high loan repayment rates, making them among the most reliable borrowers
- Systemic barriers like risk perception, collateral gaps, and social norms remain major obstacles
Villgro’s work, informed by this report, is aimed at dismantling these barriers with alternative financing models and policy advocacy.
Read the full report here: Beyond The Numbers
“The evidence is clear – women entrepreneurs are bankable and reliable borrowers. Supporting them can contribute to a more inclusive and equitable economy,” said Vibha Sharma, Lead - Impact Finance, Villgro.
🚀 Two Flagship Initiatives Creating Real Change
1. Affordable Credit for Solar-Powered Livelihoods
Villgro collaborated with Ashv Finance and DD Solar to support women micro-entrepreneurs—especially in the fisheries value chain—with solar-powered cooling solutions.
How it worked:
- End-user loan facility backed by a First Loss Default Guarantee (FLDG) (covering 25% of potential losses)
- More than ₹1 crore in credit unlocked
- Enabled the sale of 750 solar refrigeration units, with 44% of loans going to women
Results:
- 362 loans disbursed
- Just 6% non-performing assets (NPAs)
- Improved income via smarter procurement and lower fish spoilage
Ashv Finance has since launched a second loan facility with reduced FLDG requirements. With support from WE4F, 36% of product costs are now subsidized, making financing even more accessible to women.
2. Peer-to-Peer Lending for Climate-Resilient Farming
In partnership with Rang De, Villgro facilitated peer-to-peer (P2P) lending to help women farmers access Distributed Renewable Energy (DRE) technologies.
Key features:
- Loans directly funded by individual lenders
- Used to purchase DRE tools that boost productivity
- Repayments are made using income generated from the tech itself
This model is helping women in agriculture gain financial independence, increase incomes, and build resilience in the face of climate uncertainty.
💬 Why Access to Capital Matters
“Lack of access to capital remains a major constraint to business growth for women entrepreneurs,” said Vibha Sharma.
“Our efforts at Villgro focus on expanding that access while removing systemic barriers. We’re proud of the outcomes—women-led businesses are growing, thriving, and showing exceptional repayment behaviour.”
🧭 The Road Ahead: A Call to Action
Villgro remains committed to:
- Enabling women to own income-generating assets
- Advocating for policy reform
- Pushing financial institutions to invest in women-led businesses
“It’s time for India’s policymakers, investors, and financial leaders to recognize the return potential and socio-economic impact of investing in women. These enterprises lift entire communities,” Villgro emphasized.
🏢 About Villgro
Villgro is India’s pioneering social enterprise incubator, supporting invention-based businesses in Health, Agribusiness, and Climate Action. Since 2001, Villgro has:
- Supported 323 social enterprises
- Enabled over ₹438.8 crore in investment
- Created 4,922 jobs
- Impacted 20+ million lives
Villgro received the Top Incubator Award (2020) from the Department for Promotion of Industry and Internal Trade (DPIIT), Government of India.
🌐 Visit: https://villgro.org