In recent years, women in India have been increasingly asserting their financial independence, and the numbers prove it. According to multiple reports, there has been an impressive 45 percent year-on-year (YoY) increase in the number of female borrowers since 2022. More women than ever are seeking financial assistance to invest in their education, health, businesses, and overall economic well-being.
Women’s Borrowing Trends Show Remarkable Growth
A report by fintech platform mPokket highlights a significant rise in the number of female borrowers. In 2024 alone, women collectively availed loans worth ₹4.8 lakh crore, marking a major shift in their financial participation.
Key Reasons Why Women Are Taking Loans
- Healthcare Needs Are a Top Priority
- 33.5 percent of women borrowed money to cover medical emergencies and healthcare expenses.
- This highlights the growing awareness among women about securing their health and well-being, even if it means relying on financial aid.
- Education and Skill Development
- 20.6 percent of women took loans to finance their education or acquire new skills to enhance their career prospects.
- This trend indicates that more women are investing in themselves, aiming for better job opportunities or career advancements.
- Entrepreneurial Growth Among Women
- 17.4 percent of female borrowers used credit for business purposes, showing a strong drive toward entrepreneurship.
- Many women are breaking societal barriers to establish their own ventures, be it small businesses, startups, or self-employment.
- In East India, the entrepreneurial spirit is particularly high, with 25 percent of women borrowers using loans to fund their businesses. This suggests that regional factors, along with government and financial institution support, are encouraging women entrepreneurs.
Women Surpass Men in Loan Growth and Repayment Discipline
A separate report by CRIF High Mark, a leading credit bureau, has revealed that women have outperformed men in terms of both loan growth and repayment behavior in 2024.
- Increase in Active Women Borrowers
- The number of active female borrowers grew by 10.8 percent in 2024, reaching 8.3 crore by December.
- This growth rate is notably higher than the 6.5 percent increase recorded among male borrowers, indicating that women are taking loans at a faster pace than men.
- Better Loan Repayment Discipline Among Women
- Women have shown stronger repayment behavior in consumer durable loans, meaning they are more responsible in clearing their dues compared to men.
- This suggests that women prioritize financial commitments and are more disciplined in handling credit.
- Greater Support from Banks for Women Borrowers
- Government banks have played a significant role in supporting women’s financial needs in 2024.
- As a result, the total outstanding loan portfolio of women borrowers increased by 18 percent, reaching ₹36.5 lakh crore by the end of the year.
- However, despite this significant growth, women’s overall share in the total borrower base has remained stable at 24 percent, indicating that there is still room for further inclusion and financial empowerment.
Women Becoming More Financially Aware and Credit-Conscious
A recent report by NITI Aayog has highlighted another encouraging trend: more women in India are becoming financially aware and actively tracking their creditworthiness.
- At least 27 million women are now monitoring their credit scores while seeking loans to support their businesses and personal financial goals.
- As of December 2024, the number of women tracking their credit scores has increased by 42 percent compared to the previous year.
- This surge reflects a growing financial consciousness among women, as they recognize the importance of maintaining a good credit score for future borrowing opportunities.
Conclusion: Women Driving India’s Financial Transformation
The financial landscape in India is changing rapidly, and women are at the forefront of this transformation. Their increasing participation in borrowing, better loan repayment discipline, rising entrepreneurial ventures, and growing financial awareness indicate a positive shift toward economic independence.
With continued support from banks, government policies, and fintech platforms, women in India are expected to play an even more significant role in shaping the country’s financial future. As more women embrace credit as a tool for empowerment, their influence on the economy will only continue to grow in the years to come.
