Bridging the Gender Gap: Digital Technology's Role in Women's Access to Credit

In a revealing study conducted by the Goa Institute of Management, researchers discovered significant gender disparities in loan access faced by women entrepreneurs compared to men. The study, published in the 'Applied Economics' journal, highlights the key role digital technology could play in bridging this gap.

The researchers analyzed data from over 400,000 unorganized sector firms, focusing on women's enterprises and their borrowing patterns from formal finance sources like banks and government institutions. Findings indicated not only a clear gender gap in accessing credit but also that digital financial technologies could help close this gap.

The study calls for a re-evaluation of banking policies and increased promotion and education about digital financial services to enhance women's access to loans. These strategies are seen as crucial steps towards balancing financial inclusion for women and boosting entrepreneurship in India's informal sector.

(With inputs from agencies.)