Women Borrowers Surge 22% Since 2019: Report

New Delhi, Mar 3 (PTI) Women borrowers in India have grown at a compounded growth rate of 22 per cent over the last 5 years with majority of them from semi-urban and rural areas, who are also actively monitoring their credit scores, a report said on Monday.

The report titled 'From Borrowers to Builders: Women's Role in India's Financial Growth Story', released by NITI Aayog CEO B V R Subrahmanyam also showed bulk of their loan was for meeting consumption demand and comparatively less for businesses.

The report has been published by TransUnion CIBIL, Women Entrepreneurship Platform (WEP) of NITI Aayog and MicroSave Consulting (MSC).

"The number of women availing credit in India has increased at a compound annual growth rate (CAGR) of 22 per cent between CY 2019 and 2024. While consumption loans continue to be the preferred products held by women borrowers, the report's insights show that more women are also availing business loans," a statement said.

As per the report, credit availment for financing businesses constituted only 3 per cent of the overall borrowings by women in 2024, as against 42 per cent for personal finance products like personal loans, consumer durable loans, home ownership and 38 per cent against gold.

The report said the number of accounts opened for business purpose has grown 4.6 times since 2019, but these loans constitute only 3 per cent of overall loans availed by women in 2024.

Government think tank Niti Aayog in a statement said that more women in India are seeking credit and actively monitoring their credit scores.

As of December 2024, 27 million women were monitoring their credit, marking a 42 per cent increase from the previous year, signalling growing financial awareness.

The report highlights that women's share of the total self-monitoring base increased to 19.43 per cent in December 2024, up from 17.89 per cent in 2023.

The report further said that among the women borrowers, 60 per cent were from semi-urban and rural areas.

"This underscores a deepening financial footprint beyond metro cities," said Manoj Kumar Sharma, Managing Director, MSC.

Additionally, younger Gen Z women are leading the way in credit monitoring, with their number increasing by 56 per cent year-over-year (YoY).

As per the report, since 2019, women's share in business loan origination has increased by 14 per cent and their share in gold loans has grown by 6 per cent, with women accounting for 35 per cent of business borrowers by December 2024.

"However, challenges such as credit aversion, poor banking experiences, barriers to credit readiness and issues with collateral and guarantors persist. With rising credit awareness and improved scores, financial institutions have the opportunity to offer gender-smart financial products tailored to women's unique needs," it said.

More women from non-metro regions are actively self-monitoring their credit compared to those in metro areas, with a growth of 48 per cent in non-metro regions and 30 per cent in metro areas.

In 2024, Maharashtra, Tamil Nadu, Karnataka, Uttar Pradesh and Telangana accounted for 49 per cent of all self-monitoring women, with the southern region leading at 10.2 million, the report said.

Northern and central states, including Rajasthan, Uttar Pradesh, and Madhya Pradesh, saw the highest compounded annual growth rates (CAGR) in active women borrowers over the past five years, the Niti Aayog said.

Releasing the report, Subrahmanyam said the government recognises that access to finance is a fundamental enabler for women's entrepreneurship. WEP continues to work towards building an inclusive ecosystem that fosters financial literacy, access to credit, mentorship, and market linkages.

"However, ensuring equitable financial access requires a collective effort. The role of financial institutions in designing inclusive products tailored to women's needs, along with policy initiatives that address structural barriers, will be instrumental in accelerating this momentum," Subrahmanyam said.

Principal Economic Advisor, Niti Aayog, and Mission Director, WEP, Anna Roy said encouraging women entrepreneurship is one way of ensuring employment opportunities for women entering the workforce in India.

"It also serves as a viable strategy for accelerating equitable economic growth. Promoting women's entrepreneurship could create employment opportunities for 150 to 170 million people while driving greater participation from women in the labour force," Roy said.