As of December 2024, 27 million women were actively monitoring their credit scores, reflecting a shift towards financial independence and responsible borrowing.
In a significant step towards financial inclusion and empowerment, NITI Aayog has launched a report titled “From Borrowers to Builders: Women’s Role in India’s Financial Growth Story.” The report, published in collaboration with TransUnion CIBIL and MicroSave Consulting (MSC), highlights the increasing participation of women in India’s financial landscape, particularly in accessing credit and monitoring their credit scores.
Key Findings: Growing Financial Awareness Among Women
The report reveals a 42% year-over-year increase in women borrowers, indicating a surge in financial literacy and credit awareness. As of December 2024, 27 million women were actively monitoring their credit scores, reflecting a shift towards financial independence and responsible borrowing.
The Women Entrepreneurship Platform (WEP) of NITI Aayog played a crucial role in compiling this study, underscoring the importance of gender-inclusive financial growth.
Government’s Commitment to Women Entrepreneurs
During the launch event, Shri B.V.R. Subrahmanyam, CEO of NITI Aayog, emphasized the need for accessible finance to support women entrepreneurs. He stated, “Access to finance is a fundamental enabler for women’s entrepreneurship. The Women Entrepreneurship Platform (WEP) is dedicated to fostering an inclusive ecosystem that promotes financial literacy, credit accessibility, mentorship, and market linkages. However, ensuring equitable financial access requires a collective effort from financial institutions and policymakers alike.”
To further this initiative, the Financing Women Collaborative (FWC) has been constituted under WEP to engage financial sector stakeholders in promoting gender-responsive financial products.
Women Entrepreneurship as a Catalyst for Economic Growth
Anna Roy, Principal Economic Advisor at NITI Aayog and Mission Director of WEP, highlighted the transformative role of women entrepreneurs in India’s economic expansion. She noted that encouraging women-led businesses could generate employment for 150 to 170 million people, thereby accelerating equitable economic growth and increasing female workforce participation.
Regional Trends and Emerging Financial Behavior
The report also presents regional insights into women’s credit monitoring and borrowing patterns:
- Women’s share in the total self-monitoring credit base increased from 17.89% in 2023 to 19.43% in 2024.
- Women from non-metro regions are more actively self-monitoring their credit than their metro counterparts, registering a 48% growth in non-metro areas compared to 30% in metro cities.
- Five states – Maharashtra, Tamil Nadu, Karnataka, Uttar Pradesh, and Telangana – accounted for 49% of all self-monitoring women, with Southern India leading at 10.2 million credit-active women.
- Northern and central states, including Rajasthan, Uttar Pradesh, and Madhya Pradesh, recorded the highest compounded annual growth rates (CAGR) in active women borrowers over the past five years.
Increasing Access to Business Loans
Since 2019, women’s participation in business loans has seen a remarkable rise:
- 14% growth in women’s share of business loan origination.
- 6% increase in gold loans taken by women.
- By December 2024, women accounted for 35% of total business borrowers, highlighting their growing role in entrepreneurship and self-reliance.
Challenges and the Way Forward
Despite the promising trends, women still face several barriers to credit access, including:
- Credit aversion due to lack of financial literacy.
- Poor banking experiences and cumbersome loan processes.
- Challenges related to collateral and guarantor requirements.
The report underscores the need for financial institutions to design gender-smart financial products that address these challenges. With rising credit awareness and improved credit scores, banks and NBFCs have a unique opportunity to promote financial inclusion by offering tailored financial solutions for women entrepreneurs.
The launch of this report marks a significant milestone in recognizing the crucial role of women in India’s financial growth story. The increasing participation of women in credit monitoring and borrowing is a positive indicator of India’s economic transformation towards a more inclusive financial ecosystem. Policymakers, financial institutions, and industry leaders must continue working together to break barriers and create an environment where women not only borrow but also build businesses and drive economic progress.
With strategic interventions and sustained efforts, India’s vision of financial empowerment for women can become a reality, unlocking vast potential for national economic growth.
