MSME fintech Progcap facilitates stronger credit profiles for women entrepreneurs

Progcap's ProgShakti initiative empowers women entrepreneurs by providing over ₹10,000 crore in unsecured credit, enhancing their financial independence.

Despite access to formal credit continuing to remain one of the biggest barriers for women entrepreneurs in India, MSME fintech Progcap said through it’s ProgShakti initiative it has addressed this issue by increasing credit limits for women borrowers by 105% over time, reflecting stronger credit profiles and expanding business operations.

“One of the biggest challenges for women entrepreneurs has been the traditional requirement of collateral and a male co-applicant in lending systems. Through ProgShakti, we sought to remove these structural barriers by offering unsecured working capital loans that women entrepreneurs can access independently,” said Pallavi Shrivastava, Co-founder, Progcap.

“Our aim is not just to provide flexible credit, but also to support women-led businesses through capacity building via the ProgShakti Development Program,” he added.

As per studies women borrowers face nearly a 19% loan rejection rate compared to 8% for men, often owing to factors such as lack of collateral, limited credit history and structural barriers within traditional lending systems.

According to the Small Industries Development Bank of India (SIDBI), women entrepreneurs face a 35% credit gap compared to 20% for men, highlighting the challenges women-led businesses face in accessing institutional finance.

Recognising this gap, Progcap had launched ProgShakti, an initiative aimed at expanding access to credit for women-led MSMEs and enabling them to grow their businesses independently.