Women entrepreneurs prefer gold as collateral to secure loans: Survey

The survey found that gold and property are the two most favoured assets when women entrepreneurs seek loans. The trend is most prevalent in Chennai, followed by Mumbai and Delhi

As more women in India venture into entrepreneurship, gold has emerged as a preferred form of collateral for securing funds, according to the Women and Finance survey conducted by CRISIL and DBS Bank India.

The survey, accessed by Livemint, found that gold and property are the two most favoured assets when women entrepreneurs seek loans. The trend is most prevalent in Chennai, followed by Mumbai and Delhi. In contrast, Kolkata reported the lowest preference for gold as collateral, with only 11 per cent of self-employed women opting for this method. Overall, 53 per cent of women entrepreneurs preferred using gold as collateral to secure loans.

 

Limited access to loans
 

The report also disclosed that 21 per cent of women entrepreneurs rely on bank loans to finance their businesses, highlighting the need for better access to financial services for women in India. In metropolitan areas, 65 per cent of self-employed women have not secured any form of business loan, with 39 per cent depending solely on personal savings to fund their enterprises.

Chennai stands out, with 52 per cent of self-employed women choosing gold as collateral for business loans, while only 22 to 25 per cent of women in Mumbai and Delhi opt for this method. This trend is most notable among millennials, with 23 per cent of women aged 36-45 using gold as security, compared to lower percentages in other age groups.

Digital payments: The preferred transaction method
 

In line with the success of initiatives like Digital India, the report highlighted the widespread use of digital payment systems among women entrepreneurs. It revealed that 73 per cent of self-employed women prefer to receive payments from customers through digital platforms, and 87 per cent use these methods to settle business expenses.

Unified Payments Interface (UPI) was particularly popular, with 35 per cent of women using it for receiving payments and 26 per cent for paying business-related expenses. However, despite the rise in digital payments, most women still use cash for payroll and operational costs.