By December 2024, 27 million women were actively monitoring their credit, reflecting a 42% rise from the previous year and indicating increased financial awareness.
India’s socio-economic landscape is witnessing a transformative shift, with women playing a pivotal role in driving change across various sectors. According to a report titled From Borrowers to Builders: Women’s Role in India’s Financial Growth Story, released by NITI Aayog on Monday, the number of women seeking credit has tripled between 2019 and 2024, with over 60% of these borrowers hailing from semi-urban and rural areas.
Women’s preferred credit products include loans against property (36%), agricultural loans (26%), business loans (25%), and commercial vehicle loans (19%). Uttar Pradesh, Maharashtra, and Tamil Nadu have emerged as the top three states recording the highest growth in active loans.
By December 2024, 27 million women were actively monitoring their credit, representing a 42% increase from the previous year and highlighting a surge in financial awareness.
The report, unveiled by NITI Aayog CEO B.V.R. Subrahmanyam, was developed in partnership with TransUnion CIBIL, NITI Aayog’s Women Entrepreneurship Platform (WEP), and MicroSave Consulting (MSC).
The report highlights the remarkable progress women are making across diverse sectors, from participating in rural Self-Help Groups (SHGs) to leading high-tech startups in bustling urban hubs. Women across a wide socio-economic spectrum are breaking historical barriers and overcoming systemic challenges to establish themselves as creators, innovators, and leaders. Their growing financial participation is becoming a vital component of India’s economic narrative.
According to the report, women’s share in the total self-monitoring credit base rose to 19.43% in December 2024, up from 17.89% in 2023. Notably, women from non-metro regions are driving this trend, with credit self-monitoring growing by 48% in non-metro areas compared to 30% in metro cities.
Maharashtra, Tamil Nadu, Karnataka, Uttar Pradesh, and Telangana accounted for 49% of all self-monitoring women, with the southern region leading with 10.2 million women in 2024. Additionally, northern and central states such as Rajasthan, Uttar Pradesh, and Madhya Pradesh recorded the highest compounded annual growth rates (CAGR) in active women borrowers over the past five years.
The report highlights a notable rise in women’s financial participation, with their share in business loan originations increasing by 14% and gold loans by 6%. By December 2024, women accounted for 35% of business borrowers, reflecting steady growth since 2019.
Despite this progress, challenges remain. These include credit aversion among some women, subpar banking experiences, barriers to achieving credit readiness, and difficulties related to collateral and guarantors. NITI Aayog emphasized that rising credit awareness and improved credit scores present an opportunity for financial institutions to develop gender-smart financial products tailored to women’s specific needs. Importantly, women are increasingly embracing entrepreneurship and achieving financial independence through greater access to credit.
Since 2019, the number of women seeking credit in India has seen an impressive nearly threefold increase by 2024. This significant growth highlights a broader trend of financial inclusion and economic empowerment among women.
The study reveals that women’s demand for credit extends beyond traditional sectors like agriculture and retail, encompassing industries such as technology, manufacturing, and services. Women are emerging as key drivers of innovation and entrepreneurship, utilizing credit to expand their businesses and manage personal finances effectively.
The borrowing surge is particularly evident in semi-urban and rural areas, where approximately 60% of women borrowers are based. This trend underscores increasing awareness and access to financial products in regions historically underserved by conventional banking systems. Women in these areas are actively investing in their businesses, education, and household needs, playing a vital role in driving both local and national economic growth. However, despite this progress, a significant gap in financial engagement persists among younger women.
The analysis highlights a notable trend in the data, revealing relatively low participation of young women under 30 in retail credit uptake, accounting for only 27%. In contrast, men in the same age group represent 40% of retail credit consumers.
This disparity underscores the need for targeted measures to encourage younger women to utilize credit facilities, enabling them to build financial security and take entrepreneurial risks. Providing access to customized financial products and services, along with financial literacy initiatives, will be essential to narrowing this gap.
