6.3a Financial services

Why applying this strategy?

Entrepreneurs require access to capital, not only to start businesses but also to operate and expand their businesses. Wel erg kort?

What do you gain from using it (objectives)?

Expanding financing options with addressing the factors that mediate women’s access to credit

Gender Based Constraints (GBC) to be addressed:

1. Banks are wary of lending to agricultural enterprises
Causes/factors contributing:	Strategy:
Banks are reluctant to loans for agricultural enterprises because of the volatility and risk	Encourage financial institutions to target women and design ‘women-friendly’ financial products, e.g., asset leasing, or embedded financial services in buyer contracts Strategy hoort niet echt bij het constraint
2. Existing credit facilities are not tailored to women
Causes/factors contributing:	Strategy:
Microfinance institutions can only provide small amounts of money for high interest rates and formal banking institutions demand collateral	Encourage financial institutions to target women and design ‘women-friendly’ financial products, e.g., non-collateral-based lending
Banks consider men ‘head of household’ and require a married woman to obtain her husband’s signature to access finance

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Tools to assist in applying this strategy

open for suggestions

Example:

Reforming collateral-based loan policies and practices has become a part of many policy agendas. Romania and the Slovak Republic have both successfully undertaken reforms. As a result, in Romania, the volume of credit increased by 50 percent, while in the Slovak Republic, 70 percent of new business credit was issued with nonland collateral (neither disaggregated by sex).

6.3a Financial services

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