Ahead of International Women’s Day, a report by TransUnion CIBIL, NITI Aayog’s Women Entrepreneurship Platform (WEP), and MicroSave Consulting (MSC) highlights the increasing financial awareness among Indian women. More women are actively engaging with credit, opting for gold loans, and tracking their credit scores.
As of December 2024, 27 million (2.7 crore) women were monitoring their credit, marking a 42% rise compared to the previous year. Women’s representation in the total self-monitoring base has also grown to 19.43%, up from 17.89% in 2023.
Women from non-metro regions are leading this shift, with a 48% surge in credit self-monitoring, significantly higher than the 30% increase in metro areas. Southern states remain at the forefront, with Maharashtra, Tamil Nadu, Karnataka, Uttar Pradesh, and Telangana contributing 49% of all self-monitoring women.
Women’s Increasing Role in Business and Gold Loans
The report indicates a steady increase in women’s participation in business and gold loans. Since 2019, women’s share in business loan origination has grown by 14%, and their share in gold loans has risen by 6%. By December 2024, women made up 35% of business borrowers.
Despite rising credit awareness, challenges such as credit aversion, inadequate banking experiences, and difficulties in securing collateral and guarantors persist. The report highlights the necessity of gender-smart financial products to address these issues and enhance women’s access to credit.
Government’s Push for Financial Inclusion
B V R Subrahmanyam, CEO of NITI Aayog, underscored the importance of inclusive financial solutions, stating,
“Access to finance is a fundamental enabler for women’s entrepreneurship. The Women Entrepreneurship Platform (WEP) is working to create a supportive ecosystem for financial literacy, access to credit, mentorship, and market linkages.”
To advance this initiative, NITI Aayog has established the Financing Women Collaborative (FWC) under WEP, encouraging financial institutions to create tailored products that address women’s specific needs.
Anna Roy, Principal Economic Advisor at NITI Aayog and Mission Director of WEP, emphasized the broader economic impact of women’s entrepreneurship, stating,
“Encouraging women entrepreneurs can create employment opportunities for 150 to 170 million people and drive greater participation of women in the workforce.”
With financial awareness on the rise and improving credit scores, financial institutions have a significant opportunity to design more inclusive financial solutions for women borrowers. Overcoming structural barriers and expanding access to formal credit will be key to ensuring more women contribute to India’s economic growth.