Synopsis: In 2024, India witnessed a substantial 42% increase in credit monitoring among women, with active participants rising from approximately 19 million in December 2023 to 27 million by December 2024. This surge reflects a growing financial awareness and participation among women, particularly in semi-urban and rural regions.
The financial landscape in India is experiencing a noteworthy transformation, marked by a significant rise in credit monitoring and borrowing activities among women.
According to the report "From Borrowers to Builders: Women's Role in India's Financial Growth Story," jointly published by TransUnion CIBIL, NITI Aayog's Women Entrepreneurship Platform (WEP), and MicroSave Consulting (MSC), the number of women actively monitoring their credit increased by 42% in 2024.
This uptick saw active female credit monitors grow from approximately 19 million in December 2023 to 27 million by December 2024.
This surge is not confined to urban areas; semi-urban and rural regions have also seen a remarkable increase in credit participation among women.
Notably, 60% of these borrowers hail from non-metro areas, indicating a deepening financial footprint beyond major cities.
The report highlights that the number of women availing credit in India has grown at a compound annual growth rate (CAGR) of 22% between 2019 and 2024.
While consumption loans remain the most preferred credit products among women borrowers, there has been a significant uptick in business loans.
In 2024, new loan accounts opened by women for business purposes—including business loans, commercial vehicle and equipment loans, and loans against property—increased by approximately 3.7 million, with disbursements totalling Rs. 1.9 lakh crore.
This is a substantial rise compared to 2019, which saw around 800,000 new business loan accounts with total disbursements of Rs. 0.7 lakh crore.
Despite these encouraging trends, challenges persist.
Women borrowers often face barriers such as limited credit histories, collateral constraints, and financial products that do not cater to their specific needs.
Addressing these issues requires targeted policies, inclusive financial products, and public-private collaboration to foster gender-inclusive finance.
Conclusion:
The substantial increase in credit monitoring and borrowing among Indian women in 2024 signifies a positive shift towards greater financial inclusion and empowerment.
However, to sustain and enhance this momentum, it is crucial to address existing barriers and tailor financial products to meet the unique needs of women borrowers, thereby fostering a more inclusive financial ecosystem.
Disclaimer: The information presented in this article is based on reports available as of March 4, 2025. Financial trends and statistics are subject to change, and readers are advised to consult official financial institutions or news outlets for the most current information.
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