Tamil Nadu has the highest share of women borrowers in India, with 44% of women having at least one active loan, according to a report released by NITI Aayog on Monday. The report highlights that southern states have a higher percentage of women borrowers compared to the national average of 31% as of December 2024.
Southern States Lead in Women Borrowers
Tamil Nadu tops the list with 44% women borrowers, followed by Andhra Pradesh (41%), Telangana (35%), and Karnataka (34%). These states have consistently shown higher participation of women in credit activities compared to other regions.
Maharashtra has a 30% share of women borrowers, while northern and central states such as Rajasthan (26%), Madhya Pradesh (25%), and Uttar Pradesh (23%) have lower percentages. However, these states have experienced significant growth in women borrowers over the last five years, the report noted.
Tamil Nadu has witnessed a 10% compounded annual growth rate (CAGR) in live women borrowers over the past five years, reflecting strong credit participation by women in the state.
More Women Monitoring Their Credit Scores
The report also highlights a rise in financial awareness among women. As of December 2024, 27 million women borrowers in India have checked their credit information report and score with CIBIL, marking a 42% increase from the previous year.
The states with the highest number of self-monitoring women borrowers in 2024 include:
- Maharashtra, Tamil Nadu, Karnataka, Uttar Pradesh, and Telangana – together accounting for 49% of self-monitoring women borrowers.
- Tamil Nadu alone accounts for 11% of this segment.
The southern region leads in self-monitoring women borrowers, with 10.16 million women actively tracking their credit reports. This marks a 46% increase from December 2023 to December 2024.
Government Push to Improve Credit Flow to Women
The Government of India and the Reserve Bank of India (RBI) have advised banks to increase credit flow to women and ensure that their share in total bank credit reaches at least 5% or more.
In Tamil Nadu, women account for 21.12% of total bank credit, according to data from the State Level Bankers Committee (SLBC), Tamil Nadu. This is a significant achievement compared to the national target.
The report emphasizes the need for continued efforts to enhance women’s financial inclusion and credit access across all regions of India.
