Female entrepreneurs default less on loans than men — Moniepoint

Female entrepreneurs are demonstrating stronger loan repayment records than their male counterparts, with default rates among women-owned businesses 2.5 times lower than those of male borrowers.

The finding, highlighted in Moniepoint’s 2025 Impact Report, underscores a major shift in micro, small and medium enterprise financing across the region. According to the report, female-led enterprises not only demonstrated superior credit discipline but also absorbed a record level of financing over the past year.

Loans extended to women-owned businesses surged by over 300 per cent in 2025. This influx brought female portfolio allocation to 36 per cent of Moniepoint’s total disbursed credit, far outpacing the traditional industry benchmark of 16 per cent to 25 per cent.

The shift reflects broader efforts across the fintech and banking sector to bridge the persistent gender credit gap in emerging markets.

For a majority of female entrepreneurs, formal credit access remains a relatively new milestone. The report noted that 62 per cent of surveyed female business owners received their very first formal business loan through the platform. Overall, three out of four merchants who secured credit across the institution’s network were first-time borrowers entering the formal credit system.

“When women receive access to credit, the ripple effect on repayment rates and business stability is undeniable,” the report indicated, pointing to improved risk profiles among female-led businesses.

The broader macroeconomic impact of these loans has been substantial. Over $700m in credit was disbursed to MSMEs throughout 2025. Merchants benefiting from the credit facility recorded a 36 per cent average increase in transaction value, with 86 per cent reporting higher overall earnings and 88 per cent confirming business expansion.

The strong repayment metrics among female borrowers come alongside rapid growth across Moniepoint’s retail and commercial channels. The institution processed over $250bn in transaction volume over the year, serving more than 20 million businesses and individual users.

Beyond business growth, access to capital has significantly influenced employment and community welfare. Businesses backed by Moniepoint employed over eight million people in 2025, with 27 per cent of surveyed merchants expanding their workforce after receiving funding.

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