The financial landscape for women in India is undergoing a significant transformation, driven by a sharp rise in credit awareness. According to a joint report by TransUnion CIBIL, NITI Aayog’s Women Entrepreneurship Platform (WEP), and MicroSave Consulting (MSC), 27 million Indian women actively monitored their credit health by December 2024—an impressive 42% increase from 19 million in December 2023.
The report, titled “From Borrowers to Builders: Women’s Role in India’s Financial Growth Story,” further reveals that women’s share in the total self-monitoring borrower base grew to 19.43% in December 2024, up from 17.89% the previous year.
A closer look at the data indicates that younger women, particularly Gen Z borrowers, are at the forefront of this shift. Gen Z women saw a 56% year-on-year (YoY) increase in self-monitoring activity, making up 22% of the self-monitoring women population in 2024. Meanwhile, Millennial women exhibited a 38% YoY rise, constituting 52% of self-monitoring women.
This growing awareness is translating into action. TransUnion CIBIL data indicates that 13.49% of women who monitor their credit open a new loan account within a month of doing so. Additionally, 44% of self-monitoring women experienced improvements in their credit scores within 6 months, reflecting enhanced financial management.
Highlighting the need for better financial access, B.V.R. Subrahmanyam, CEO of NITI Aayog, remarked, “Access to finance is a fundamental enabler for women’s entrepreneurship. The Women Entrepreneurship Platform continues to work towards building an inclusive financial ecosystem, but this requires collaborative efforts from financial institutions and policymakers to design women-centric credit solutions.”
Between 2019 and 2024, women borrowers in India grew at a compounded annual growth rate (CAGR) of 22%. Notably, 60% of these borrowers hail from semi-urban and rural areas, indicating the expanding financial footprint of women beyond metropolitan cities.
While consumption loans remain the preferred credit product for women borrowers, business loans are gaining momentum. In 2024, women opened 37 lakh new business-purpose loan accounts—over four times the 8 lakh accounts recorded in 2019. Correspondingly, business loan disbursements to women surged to ₹1.9 lakh crore in 2024, up from ₹0.7 lakh crore in 2019.
A breakdown of women borrowers’ credit portfolios showcases this evolving preference:
The rise in credit monitoring is more pronounced in non-metro areas, where self-monitoring women borrowers grew by 48% YoY, compared to a 30% increase in metro cities.
Among states, southern regions lead the charge. Tamil Nadu, Karnataka, and Telangana, along with Maharashtra and Uttar Pradesh, account for 49% of self-monitoring women borrowers in India.
The increasing credit awareness among Indian women is a testament to their growing financial independence and participation in the credit ecosystem. With Gen Z women leading the charge and rural penetration expanding, India is witnessing a paradigm shift in women’s financial literacy and borrowing patterns. This transformation sets the stage for enhanced economic opportunities, particularly in entrepreneurship and business expansion.
Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.
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Published on: Mar 4, 2025, 1:53 PM IST
Team Angel One
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