Women are rapidly emerging as a major force in India’s credit landscape, holding a combined credit portfolio of ₹76 lakh crore, or 26 per cent of the country’s total credit system, according to a new report released by NITI Aayog.
The report, titled “From Borrowers to Builders: Women and India’s Evolving Credit Market,” was released in New Delhi by Nidhi Chhibber, Chief Executive Officer of NITI Aayog. Prepared under the Women Entrepreneurship Platform in collaboration with TransUnion CIBIL and MicroSave Consulting, the report presents fresh evidence of women’s expanding role in the formal financial system.
The findings show that women’s credit capacity has increased 4.8 times since 2017, indicating a shift from basic access to credit towards deeper participation in the formal economy.
Credit access is expanding across the country
The report notes that the number of active women borrowers has been steadily rising. Between December 2017 and December 2025, the number of women with active loans recorded a compound annual growth rate of 9 per cent.
During the same period, women’s access to credit increased sharply from 19 per cent to 36 per cent. Total outstanding loans to women surged from ₹16 lakh crore in 2017 to ₹76 lakh crore by 2025.
With nearly 45 crore women in India estimated to be eligible for credit, the report suggests that the potential for further expansion remains considerable.
Speaking at the launch, Chhibber said economic growth accelerates when participation in markets becomes broader and more efficient. She highlighted that the integration of digital public infrastructure with formal lending systems has significantly changed how financial participation is recorded and financed. The report, she said, shows how women are not only benefiting from these shifts but are also shaping them.
She added that women borrowers are increasingly moving beyond entry-level loans and are now accessing retail and commercial credit products, reflecting stronger financial capacity and deeper economic integration.
Surge in business borrowing among women
A major driver behind the growth has been the rapid expansion of commercial credit among women entrepreneurs. Loans extended to women for business purposes recorded a compound annual growth rate of 31 per cent between 2022 and 2025, compared with 17 per cent growth in overall commercial lending.
The report also highlights a gradual transition among microfinance borrowers towards larger retail and commercial loans. Around 19 per cent of active microfinance institution borrowers now hold such credit products, indicating that many women are moving beyond small-ticket borrowing into broader financial engagement.
According to Anna Roy, Programme Director at NITI Aayog and Mission Director of the Women Entrepreneurship Platform, the diversification of women’s borrowing reflects a significant transformation in India’s economic landscape. She noted that the encouraging trend lies not only in increased access to credit but also in the expanding range of financial products women are using and their growing engagement with formal financial systems.
Roy emphasised that sustaining this momentum will require continued efforts to strengthen the enabling environment so that higher participation translates into stronger enterprises and deeper economic contributions over time.
Digital systems lowering barriers to finance
The report also points to rapid digitalisation in identity verification, payments, insurance, and lending services as a key factor lowering entry barriers. These developments are helping women transition from informal borrowing channels to structured and transparent financial systems.
Geographically, the expansion of credit access is spreading beyond traditional strongholds in southern and western India. Growth is increasingly visible in northern states such as Bihar and Uttar Pradesh.
Among the most popular credit products for women are personal loans and gold loans. At the same time, housing loans are witnessing encouraging growth, suggesting rising asset ownership among women.
The report draws on long-term credit bureau data covering nearly 160 million active women borrowers, along with primary research conducted with 161 rural women micro-entrepreneurs. For the first time, the study also incorporates microfinance data, offering a more comprehensive assessment of women’s access to credit.
The research builds on a collaboration launched in 2025 under the Women Entrepreneurship Platform’s Financing Women Collaborative, which aims to address gaps in gender-disaggregated data on formal credit access, borrower behaviour, and the evolving credit ecosystem in India.