Women in India are actively strengthening their financial participation, with credit monitoring among female borrowers rising by 42 percent in 2024, according to a new report by NITI Aayog, in collaboration with TransUnion CIBIL and MicroSave Consulting (MSC). The report, “From Borrowers to Builders: Women’s Role in India’s Financial Growth Story,” was launched on March 3 by NITI Aayog CEO B.V.R. Subrahmanyam.
The report highlights a substantial rise in credit awareness, with 27 million women actively monitoring their credit as of December 2024, up from previous years. This shift indicates greater financial literacy, access to credit, and entrepreneurial potential among women.
Expanding Access to Credit for Women Entrepreneurs
During the launch, Subrahmanyam emphasized the importance of financial inclusion in empowering women entrepreneurs, noting that the Women Entrepreneurship Platform (WEP) is working to enhance financial literacy, access to credit, and market linkages.
To further support women-led businesses, NITI Aayog announced the launch of the Financing Women Collaborative (FWC) under WEP, inviting financial institutions to create tailored financial products for women and address existing structural barriers.
According to Anna Roy, Principal Economic Advisor at NITI Aayog and Mission Director of WEP, women’s entrepreneurship plays a crucial role in job creation and economic growth. She noted that supporting women-led businesses could generate employment for 150 to 170 million people, further boosting female workforce participation.
Regional Trends in Women’s Credit Monitoring
The report also highlights regional disparities in credit monitoring trends, with non-metro regions seeing a 48 percent increase in women actively monitoring their credit, compared to 30 percent growth in metro areas.
The top five states leading in self-monitoring women borrowers are:
- Maharashtra
- Tamil Nadu
- Karnataka
- Uttar Pradesh
- Telangana
These states collectively account for 49 percent of all self-monitoring women, with southern India leading the growth at 10.2 million borrowers. Additionally, Rajasthan, Uttar Pradesh, and Madhya Pradesh recorded the highest growth rates in active women borrowers over the past five years.
Growing Role of Women in Business and Credit Markets
Women’s participation in business loans and gold-backed credit has steadily increased since 2019:
- Women’s share in business loan origination has grown by 14 percent.
- Gold loan participation among women has risen by 6 percent, with women now making up 35 percent of total business borrowers by December 2024.
However, despite these improvements, challenges persist, including credit aversion, limited banking experiences, and difficulties in accessing collateral-based loans. The report suggests that financial institutions have a unique opportunity to introduce gender-smart financial products tailored to the evolving needs of female borrowers and entrepreneurs.
Also read: Women Entrepreneurship Platform: Seher Initiative by TransUnion CIBIL and NITI Aayog
A Path Toward Greater Financial Inclusion
With rising credit awareness and improved financial literacy, women in India are increasingly playing a significant role in the country’s financial ecosystem. The report underscores the need for banks, fintech firms, and policymakers to work together in addressing credit barriers and creating innovative financial solutions that will further strengthen women’s economic empowerment.