Women Borrowers on the Rise: CIBIL-Niti Aayog Report Shows 22% CAGR Over Five Years March 7, 2025 by
Women Borrowers on the Rise: CIBIL-Niti Aayog Report Shows 22% CAGR Over Five Years
Introduction
Women are increasingly taking charge of their financial futures, and a new CIBIL-Niti Aayog report confirms this trend. The report reveals that women borrowers in India have grown at a staggering 22% Compound Annual Growth Rate (CAGR) over the past five years. This significant rise reflects a shift towards financial inclusion, independence, and greater participation in the economy.
But what’s driving this growth? Let’s dive into the factors behind this trend and its broader implications.
The Growth of Women Borrowers in India
Key Highlights from the CIBIL-Niti Aayog Report
- Women borrowers have grown at a 22% CAGR from the past five years.
- Their participation in various loan categories, including home loans, business loans, and education loans, has surged.
- Women borrowers have shown strong credit discipline, resulting in improved credit scores.
- The gap between men and women in accessing credit is gradually narrowing.
Factors Driving the Rise of Women Borrowers
1. Financial Awareness Among Women
With increased financial literacy campaigns, women today are better informed about credit options, loan management, and credit scores. More women now understand the benefits of responsible borrowing and timely repayment.
2. Digital Banking and Fintech Revolution
Digital banking and fintech platforms have made it easier for women to access loans. Instant loan approvals, minimal paperwork, and online credit assessment tools have made borrowing more convenient, especially for women in rural areas.
3. Government Policies Supporting Women Entrepreneurs
The government has introduced several schemes to encourage women entrepreneurs, such as:
- Mudra Loans for Women – Offers collateral-free loans for small businesses.
- Stand-Up India Scheme – Supports women-led startups with bank loans.
- Mahila Udyam Nidhi Scheme – Provides financial assistance for women entrepreneurs.
These schemes have empowered women to start and expand businesses, leading to an increase in business loan applications.
4. Increasing Employment and Income Levels
With more women entering the workforce, financial independence and borrowing capacity have improved. Women are now more confident in applying for loans to buy homes, start businesses, or invest in their education.
5. Better Credit Discipline and Improved Credit Scores
Women borrowers have demonstrated higher credit discipline, leading to improved CIBIL scores. This makes them more attractive to lenders, further encouraging financial institutions to provide loans at favorable interest rates.
Types of Loans Women Are Borrowing
1. Home Loans
Women are increasingly purchasing homes, either independently or jointly. Many banks offer lower interest rates for women borrowers, making home ownership more accessible.
2. Business Loans
Women-led startups and small businesses are on the rise. Business loans help women entrepreneurs expand operations, invest in new technologies, and increase employment opportunities.
3. Education Loans
With more women pursuing higher education and professional courses, education loan applications among women have surged. This investment in education leads to better career opportunities and financial stability.
4. Personal Loans
From medical expenses to travel and weddings, women are taking personal loans to manage various financial needs. Easy accessibility to unsecured loans has boosted this segment.
5. Vehicle Loans
More women are buying personal vehicles for independence and convenience. Auto loans for women have increased, supported by attractive financing options from banks and NBFCs.
Challenges Faced by Women Borrowers
Despite this progress, women borrowers still face challenges such as:
- Limited financial independence in some regions.
- Lack of collateral for securing larger loans.
- Gender bias in lending decisions, particularly for business loans.
- Lower income levels compared to male counterparts, impacting loan eligibility.
How Financial Institutions Can Support Women Borrowers
To encourage more women to access credit, financial institutions can:
- Offer more flexible repayment options and lower interest rates.
- Provide specialized loan products tailored for women entrepreneurs.
- Expand financial literacy programs to educate women on credit management.
- Improve access to credit for rural and semi-urban women.
