Women in India's Credit Market

Women borrowers in India have significantly increased their credit portfolio, now holding ₹76 trillion, which is 26% of the total credit in the system. This marks a substantial growth from ₹16 trillion in 2017, at a compounded annual growth rate (CAGR) of 20%.

Key Reports and Findings

• From Borrowers to Builders: A report by NITI Aayog, TransUnion CIBIL, MicroSave Consulting, and the Women Entrepreneurship Platform highlights a 4.8 times expansion in women’s credit exposure from 2017 to 2025. 
• Women and Finance by DBS Bank India Ltd: Released in March, it notes a rise in credit penetration among women to 36% by 2025, with 69% of urban female entrepreneurs being primary financial decision-makers. 

Digitisation and Entry Barriers

• Digitisation across identity verification, payments, underwriting, and loan servicing has reduced entry barriers, boosting women's participation in finance.
• Business loans surged from 16% in 2017 to 25% in 2025 as the fastest-growing segment for women borrowers.

Credit Participation and Growth

• The number of credit-active women borrowers rose at a CAGR of 9% between 2017 and 2025.
• Women’s credit penetration jumped from 19% in 2017 to 36% in 2025, with substantial involvement in the formal credit system.
• Retail loans dominate at 71% of the portfolio, while business loans show the highest growth rate, signaling more women engaging in entrepreneurship.

Regional and Segment Analysis

• Tamil Nadu and Maharashtra lead in active women business borrowers, with significant growth rates in Bihar and Uttar Pradesh at 59% and 42% CAGR, respectively.
• Different segments of women, such as rural earners, HNW women, and entrepreneurs, show varied confidence levels and financial management priorities.

Digital Adoption and Barriers

• Digital platforms are favored by women entrepreneurs and HNW women, though rural women prefer in-person banking due to trust issues.
• Despite high smartphone ownership, rural women face barriers like unfamiliarity with apps and fear of scams, affecting digital financial service adoption.

Lakhpati Didi Scheme

This scheme, highlighted at the 2025 Republic Day parade, focuses on women’s economic empowerment through entrepreneurship, aiming to provide a minimum annual income of ₹1 lakh to self-help group (SHG) members. Around 30 million women have benefited so far, with a target of 600 million by 2029.