4th March 2025 (14 Topics)
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Women’s Credit Growth in India
Context
A report jointly published by TransUnion CIBIL, NITI Aayog’s Women Entrepreneurship Platform (WEP), and MicroSave Consulting (MSC) highlights a significant increase in women borrowers in India. Between 2019 and 2024, credit demand from women tripled, with a 22% compounded annual growth rate (CAGR) in retail credit uptake. This surge indicates a shift in financial behavior, where more women, particularly from semi-urban and rural areas, are leveraging credit for personal and professional needs.
Key Findings of the Report
- Surge in Credit Demand & Borrowers' Profile
- Women borrowers’ retail credit demand grew threefold from 2019 to 2024.
- Around 60% of women borrowers availing credit are from semi-urban and rural areas.
- Women under 30 account for 27% of retail credit uptake, lower than men (40%).
- Women’s participation in business loans increased fourfold in the past six years.
- Sector-Wise Credit Distribution
- Personal finance loans (home, vehicle, consumer durables, etc.): 3 crore loans worth Rs 4.8 lakh crore were availed in 2024. 42% of all loans availed by women.
- Gold loans: 4 crore loans worth Rs 4.7 lakh crore were availed in 2024. 36% of all loans availed by women, up from 19% in 2019 (5.1x growth).
- Business loans & commercial credit (including loans against property): 37 lakh new loan accounts opened by women. Rs 1.9 lakh crore in disbursements. Number of business loan accounts opened has grown 4.6x since 2019. However, business loans still constitute only 3% of total loans availed by women.
- Growing Awareness of Credit Health
- 42% growth in women monitoring their credit scores, from 94 million (Dec 2023) to 26.92 million (Dec 2024).
- Gen Z women (born mid-1990s–2010s) lead credit monitoring, with a 56% YoY increase.
- Millennial women (born 1981–1996) recorded a 38% YoY increase, making up 52% of self-monitoring women.
- Challenges: Despite the rise in financial awareness, barriers like credit aversion, poor banking experience, lack of collateral, and guarantor constraints
Government & Institutional Initiatives to Support Women Borrowers
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