27 million women now tracking credit scores, share in business loans up 14% since 2019: Report

More Indian women are seeking credit and actively tracking their credit scores, signalling growing financial awareness, according to a report launched by NITI Aayog on Monday.

The report, titled ‘From Borrowers to Builders: Women’s Role in India’s Financial Growth Story,’ was launched by NITI Aayog CEO B.V.R. Subrahmanyam.

Published in collaboration with TransUnion CIBIL, the Women Entrepreneurship Platform (WEP) of NITI Aayog, and MicroSave Consulting (MSC), the study highlighted key trends in women’s financial participation.

As of December 2024, 27 million women were monitoring their credit, a 42% increase from the previous year. Their share in the total self-monitoring base grew to 19.43% from 17.89% in 2023, with non-metro areas outpacing metro regions in credit self-monitoring growth at 48% versus 30%.

Maharashtra, Tamil Nadu, Karnataka, Uttar Pradesh, and Telangana accounted for nearly half of all self-monitoring women, with the southern region leading at 10.2 million. 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.

Women’s share in business loan origination has risen by 14% since 2019, while their share in gold loans has increased by 6%. By December 2024, women made up 35% of business borrowers. However, the report noted persistent challenges such as credit aversion, poor banking experiences, collateral barriers, and credit readiness issues.

“With rising credit awareness and improved scores, financial institutions have the opportunity to offer gender-smart financial products tailored to women’s unique needs,” NITI Aayog said in a statement.

Speaking at the launch event, Subrahmanyam stressed the need for inclusive financial products.

"The government recognises that access to finance is a fundamental enabler for women’s entrepreneurship. The Women Entrepreneurship Platform (WEP) continues to work towards building an inclusive ecosystem that fosters financial literacy, access to credit, mentorship, and market linkages," he said.

To further this goal, NITI Aayog has established the Financing Women Collaborative (FWC) under WEP, urging more financial sector stakeholders to participate.

Anna Roy, Principal Economic Advisor at NITI Aayog and Mission Director of WEP, highlighted the economic potential of fostering women’s entrepreneurship.

"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."