NITI Aayog released second edition of its report “From Borrowers to Builders: Women and India’s Evolving Credit Market”. The report was prepared under the Women Entrepreneurship Platform (WEP) by TransUnion CIBIL and MicroSave Consulting (MSC).
About the Report
- Based on longitudinal credit bureau data of approximately 16 crore credit-active women.
- Complemented by primary research with 161 rural women nano-entrepreneurs.
- This edition incorporates microfinance data for the first time making it a comprehensive assessment.
- Prepared under WEP’s Financing Women Collaborative (FWC) to address gaps in sex-disaggregated credit data.
Three Borrower Segments Examined
- Microfinance borrowers: first formal credit experience through small-ticket, collateral-free loans
- Retail-purpose borrowers: consumption-led credit (gold, consumer durables, vehicles, housing)
- Women entrepreneurs: business-purpose credit for enterprise expansion
Key Findings
- Women borrowers in India now hold a credit portfolio of Rs 76 lakh crore: accounting for 26% of total system credit.
- Women’s credit exposure has expanded 4.8 times since 2017: signalling a shift from access-led inclusion to progression-led participation in formal credit.
- Credit penetration among women increased from 19% (2017) to 36% (2025).
- Number of credit-active women borrowers grew at a CAGR of 9% between December 2017 and December 2025.
- Total credit outstanding to women grew from Rs 16 lakh crore (2017) to Rs 76 lakh crore (2025).
- India has nearly 45 crore credit-eligible women, indicating significant untapped potential.
Segment-wise Highlights
Commercial Credit (Women Entrepreneurs)
- Credit to women business borrowers registered a CAGR of 31% between 2022–2025, compared to 17% for overall commercial credit.
- Portfolio balances of women entrepreneurs increased 7.5 times since 2017.
- Gradual shift towards revolving credit products like cash credit and overdraft — indicating growing financial sophistication.
Microfinance
- 19% of active MFI borrowers are now transitioning to individual retail and commercial loans — a sign of upward credit mobility.
Retail Credit
- Personal and gold loans remain most widely accessed products.
- Housing loans witnessing encouraging growth- indicating rising asset ownership among women.
- 45% of approvals in key consumption categories now occur on same day- reflecting impact of digitisation.
Geographical Trends
- Credit access is expanding beyond traditional markets- northern states like Bihar and Uttar Pradesh showing increased growth alongside southern and western states.
Role of Digitisation
- Rapid digitisation across identity, payments, underwriting and loan servicing has reduced entry barriers.
- Enabling women’s transition from informal borrowing to formal, structured financial systems.
- Digital adoption is widespread among rural women nano-entrepreneurs (RWNEs), though depth of independent usage varies.