Collateral-Free Business Loans for Women: Pallavi Srivastava

Pallavi Srivastava, Co-founder of MSME fintech company Progcap, stated that more than ₹10,000 crore in loans have been provided to women entrepreneurs through the ProgShakti initiative. She explained that under this program, collateral-free loans of up to ₹10 lakh are being offered to each woman entrepreneur.

According to Pallavi, women borrowers currently account for 17 percent of Progcap’s total loan portfolio and this number is growing at an annual rate of around 40 percent. She also highlighted that nearly 90 percent of these women entrepreneurs come from tier-2 and tier-3 cities.

Pallavi noted that one of the biggest challenges faced by women entrepreneurs is access to credit. Typically, loans are sanctioned only if collateral is provided or if there is a male co-applicant. However, through the ProgShakti program, working capital loans are being provided without the need for any collateral, she emphasized.