New Delhi, Apr 8 (KNN) Women borrowers in India now hold a credit portfolio of Rs 76 lakh crore or nearly 26 per cent of the total system credit, a NITI Aayog report has said.
The report highlighted that women’s credit exposure has expanded 4.8 times since 2017, reflecting a shift from basic access to deeper participation in the formal credit ecosystem.
The report titled ‘From Borrowers to Builders: Women and India’s Evolving Credit Market’ has been prepared in collaboration with TransUnion CIBIL and MicroSave Consulting (MSC).
Speaking at the launch of the report, NITI Aayog CEO Nidhi Chhibber said, “Economic development advances when participation in markets becomes broader, deeper and more efficient. The convergence of DPI and formal credit systems has significantly transformed how economic participation is recorded and financed.”
Women’s Credit Footprint Expands Significantly
The number of credit-active women borrowers has grown steadily, registering a compound annual growth rate (CAGR) of 9 per cent between 2017 and 2025. During the same period, credit penetration among women increased from 19 per cent to 36 per cent.
Shift Towards Business and Retail Lending
Chhibber noted that women borrowers are increasingly moving beyond entry-level loans towards retail and business-purpose lending.
Anna Roy, Programme Director, NITI Aayog, and Mission Director, Women Entrepreneurship Platform (WEP), noted, “The scale and diversification of women’s participation in formal credit signal a meaningful shift in India’s economic landscape.”
“Sustaining this momentum will require continued focus on strengthening the enabling environment—so that increased participation translates into more resilient enterprises and deeper economic contribution over time,” Roy added.
Strong Growth in Commercial Credit
The report notes that credit to women business borrowers has seen rapid expansion, growing at a CAGR of 31 per cent between 2022 and 2025, significantly higher than overall commercial credit growth.
It also points to a gradual transition of microfinance borrowers towards retail and commercial lending, with 19 per cent of active microfinance borrowers now availing such loans.
Wider Geographic Reach and Product Diversification
The geographical spread of women’s credit access is widening, with states such as Bihar and Uttar Pradesh showing notable growth alongside traditionally strong regions in the south and west, as per the report.
Personal and gold loans remain the most widely accessed products, while housing loans are witnessing increased uptake, indicating a rise in asset ownership among women.
Digital Push
The report underscores the role of rapid digitisation in reducing entry barriers and enabling women to transition from informal borrowing to structured financial systems. With nearly 45 crore credit-eligible women in India, it highlights significant untapped potential for further expansion.
(KNN Bureau)
