Getting a head start in business sometimes needs an injection of cash, and taking out a loan can be the way to achieve this. But loans require security and paperwork, which historically has put women at a disadvantage. With lower levels of literacy and education than men, the bureaucracy of applying for a loan with a bank often excludes them. Women are also far less likely to own land, which can be used to secure a loan, limiting their negotiating power with the banks. In recent years, there has been success in widening financing for women through creative micro-finance initiatives. In Papua New Guinea, two Pacific Women projects are trialling methods to help women obtain loans: CARE supports village savings and loans associations and FHI 360 is partnering with a financial institution.
