Prime Highlights
- Women’s credit portfolios in India are projected to reach ₹76 lakh crore by 2025, nearly five times higher than 2017 levels.
- Business loans now account for 25 percent of women’s total borrowing, indicating rising entrepreneurial activity.
Key Facts
- Women borrowers have lower default rates than men, reflecting stronger repayment discipline across most loan categories.
- Women-led businesses receive only 7 percent of MSME credit despite growing participation in entrepreneurship.
Background
Women in India have displayed a remarkable enhancement in getting hold of credits, resulting in their total credit portfolio is expected to reach Rs. 76 lakh crores by 2025. The increase demonstrates that more women now participate in financial systems, while they also show an increased tendency to borrow money for business needs.
Women now account for 26 % of the country’s total credit, while credit penetration among women has increased from 19 % to 36 % during the period. A major driver of this growth is the shift toward business borrowing. Business loans now make up 25 % of women’s credit portfolios, up from 16 % earlier, showing rising entrepreneurial activity among women.
The total number of business loans granted to women entrepreneurs increased by 7.5 times, while personal loans remained the most common loan type at 71 %, despite their total %age decreasing from earlier times.
Women borrowers generally exhibit better propensities for repayment than their male counterparts, with lower default rates across different categories of loans. Their credit portfolios have developed at a faster rate than male borrowers’ credit portfolios during the previous years.
Digital lending platforms and faster approval systems have created better access to formal credit because lenders now process more consumer loan approvals within a single day than they did in the past.
Financial literacy and digital adoption among women remain low. Women-run businesses struggle to get loans. They receive a very small share of MSME funding, and when they do get loans, the amounts are smaller than what men receive.
Experts believe women borrowers are a big opportunity for India’s financial sector. The financial growth of women entrepreneurs requires their access to improved financial education and better business support systems.
