Guwahati, June 24: Although women's empowerment remains a hot topic for discussion, female entrepreneurs face innumerable challenges while setting up viable business models. The Government of India (GoI) has thought of several schemes to promote women's empowerment. A majority of female entrepreneurs have recently applied for business loans from NBFCs. Based on the recent developments, GoI has promoted several financial schemes for women entrepreneurs to help them sustain themselves in future.
On the other hand, NBFCs (Non-banking financial companies) have emerged as the best alternatives for traditional financial institutions, and consultants reveal that such institutions play an active role in promoting female entrepreneurs. Before we delve into the intricacies, let’s take a close look at the following:
Understanding the Gender Gap in Financial Inclusion
Accession to financial capital had remained quite tough, especially for women if they happened to be entrepreneurs. The stigma of the gender gap stays prevalent even in today’s modernised world, and this closely affects the financial inclusion of women. Males, primarily known as the ‘dominating species’, have always had easier access to finance and business sectors than women.
The impacts of the gender gap in financial institutions are displayed through disparities created amongst women and men in accessing financial services. Gender disparities have been observed in processing financial bills, terms of credit, giving financial coverage, and investment opportunities. This gap is usually caused by elements such as lower profits and low employment opportunities amongst women, societal and cultural norms restricting women’s financial autonomy, and a large digital divide affecting women. The implications of this gap are profound, affecting financial growth, empowerment of women, etc.
NBFCs and Financial Inclusion
NBFCs have a unique function in advancing financial inclusion amongst women. Consultants from the financial industry acknowledge that NBFCs have better penetration into the regional markets, giving women wider access to financial resources nationwide. Loans for women have been a priority initiative for most NBFCs in India. Talking about a few strategic insights about NBFCs, we understand the following:
- NBFCs can compute tailor-made financial products, particularly for women entrepreneurs. NBFCs function in terms of imparting microcredits, small personal loans or business loans with minimal collateral requirements.
- Disburse savings products that cater to women’s particular needs in markets proposing seasonal income.
- NBFCs can adopt more flexible operational fashions to suit women's lifestyles, particularly in rural areas.
- NBFCs propose cellular banking units that partner with local corporations to provide points of service.
- NBFCs propose mobile banking, which is greatly effective, enabling women to conduct financial transactions from the comfort of their homes,
- NBFCs play a significant role in raising financial awareness, particularly among women candidates. They also propose quality financial literacy programs.
- NBFCs propose quality consultations with the women entrepreneurs to help them manage financial resources.
Strategies for Promoting Financial Inclusion
Promoting financial inclusion includes implementing comprehensive strategies to ensure the proper functioning of a business model. Some of the strategies are:
- Digital Financial Services: This is an inclusive strategy promoted through technology. Online services include digital wallets, mobile banking, etc., which can influence women's lives in remote regional markets.
- Regulatory Framework and Policies: Government-registered regulatory agencies play a pivotal role in promoting financial inclusion. The GoI has encouraged innovation on a mass scale and introduced simpler ways to open a bank account, while small amounts of financial deposit have been encouraged to marginalised populations.
- Financial Literacy and Education Programs: NBFCs have pioneered raising financial awareness,, especially amongst the rural population in India. According to experts, a special focus has been created to disburse collateral-free business loans for elderly women to help them set up a viable business model.
Conclusion
In conclusion, we understand that promoting financial inclusion is vital to ensuring overall growth. NBFCs are an immense help in initiating inclusion across regional markets and providing services that a normal bank may not offer to a particular community.
In addition, NBFCs also help empower women by highlighting their abilities in the spotlight while ensuring financial services promote women entrepreneurs across the national economy.
