The Women’s Economic Empowerment Project in Mongolia, supported by the Canadian Government (Canada’s Foreign Policy—Global Affairs Canada), is implemented in collaboration with TransBank and Gerege Systems. The pilot project is launched to increase access to finance for women entrepreneurs, as it is the biggest challenge for them, especially for micro and small businesses.
Lack of collateral is the main reason why business women’s loan applications are rejected. This is due to the fact that women’s real estate ownership is less than half that of men (60% of men and 32% of women own real estate). Therefore, in order to find a new solution to replace the traditional requirement of collateral, which is vital to increase access to finance, the Asian Fund, the Bank for Transport and Development and our company, Gerege Systems have established a Memorandum of Understanding.
As part of the MoU, the parties will start a pilot project to find innovative solutions to replace collateral that will be based on technological solutions to increase access to credit for women entrepreneurs.