Small towns see sharp increase in women borrowers

Mumbai: India is witnessing a sharp rise in women borrowers, driven by increased financial awareness and access to credit in smaller towns.

According to a report by TransUnion CIBIL, Women Entrepreneurship Platform (WEP), and MicroSave Consulting (MSC), the appetite for credit among women has surged, with loan accounts for business purposes quadrupling since 2019. In 2024, 3.7 million new loan accounts were opened for business, with disbursements totaling Rs 1.9 lakh crore. However, these loans still comprise only 3% of total borrowings by women, who predominantly take consumption loans, gold loans, and agri-financing.

Women borrowers in semi-urban and rural areas account for 60% of this growth, underscoring a deepening financial footprint beyond metros. States like Maharashtra, Tamil Nadu, Karnataka, Uttar Pradesh, and Telangana led in self-monitoring women borrowers, with the southern region seeing the fastest rise.

Credit awareness is translating into action. About 13.5% of women who check their credit score take out a loan within a month, while 44% see an improvement in their credit scores within six months. Among women previously behind on repayments, nearly 18% improved their credit standing within six months, with 11% returning to standard borrower status.

Despite these gains, barriers remain. Women borrowers often face collateral constraints, limited credit histories, and product offerings that do not cater to their needs. Policymakers and financial institutions must tailor lending products and improve financial literacy to sustain this momentum.

“Encouraging women’s entrepreneurship is key to economic growth,” said NITI Aayog CEO B.V.R. Subrahmanyam. WEP has launched the Financing Women Collaborative (FWC) to push for greater financial inclusion.

According to Bhavesh Jain, MD & CEO of TransUnion CIBIL, the number of women self-monitoring their credit grew by 42% YoY, reaching 26.9 million in Dec 2024. "While this trend is encouraging, it must continue for women to move from participants to leaders in India’s economic story," he said.


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