Credit Awareness on the Rise
Women in India are taking charge of their finances. NITI Aayog’s latest report shows a 42% rise in women borrowers. By December 2024, 27 million women were actively monitoring their credit. This marks a significant shift towards financial awareness.
Women’s Role in Financial Inclusion
The report, From Borrowers to Builders: Women’s Role in India’s Financial Growth Story, was launched by NITI Aayog in collaboration with TransUnion CIBIL and MicroSave Consulting. It highlights the role of finance in women’s empowerment and entrepreneurship. Women now make up 35% of business borrowers in India. Business loan origination by women has grown by 14% since 2019. The share of women in gold loans has increased by 6%.
Non-Metro Women Drive Credit Growth
Women from non-metro areas are leading the shift. Their credit monitoring grew by 48%, compared to 30% in metro areas. Southern states, including Karnataka and Tamil Nadu, recorded the highest participation. Rajasthan, Uttar Pradesh, and Madhya Pradesh saw the fastest growth in active women borrowers. Despite this progress, challenges remain, including credit aversion and limited access to collateral.
NITI Aayog emphasised the need for inclusive financial policies. The Women Entrepreneurship Platform (WEP) is working to improve financial literacy and access. The Financing Women Collaborative (FWC) seeks to bring more financial institutions on board. As more women engage in credit monitoring, financial institutions must step up with better banking experiences and gender-smart financial products. The momentum is strong, but sustained efforts are needed for true financial inclusion.
