Women borrowers in India have expanded their presence in the formal credit market, with a new NITI Aayog report showing a sharp rise in credit access, portfolio size and diversification. The second edition of From Borrowers to Builders – Women and India’s Evolving Credit Market marks how women are moving beyond basic inclusion towards deeper participation in retail, commercial and business lending.
Key Findings of the Report
- Women borrowers now hold a credit portfolio of Rs 76 lakh crore.
- This accounts for 26% of total system credit.
- Women’s credit exposure has increased 4.8 times since 2017.
- Credit penetration among women rose from 19% to 36% between December 2017 and December 2025.
- The number of credit-active women borrowers grew at a CAGR of 9% during the same period.
Shift from Access to Progression
The report notes a clear transition from access-led inclusion to progression-led participation. Women borrowers are increasingly taking retail and business-purpose loans rather than only entry-level credit. This indicates stronger financial capability and deeper integration into the formal financial system.
Business and Commercial Credit Growth
Growth has been especially strong in commercial credit. Credit to women business borrowers recorded a CAGR of 31% between 2022 and 2025, compared with 17% for overall commercial credit. The report also notes that 19% of active microfinance borrowers now hold individual retail or commercial loans, showing a gradual movement away from dependence on group-based microfinance.
Regional Spread and Digital Enablers
- Women’s credit access is expanding across regions, including Bihar and Uttar Pradesh.
- Personal and gold loans remain the most accessed products.
- Housing loans are also rising, suggesting greater asset ownership among women.
- Digitisation in identity, payments, underwriting and servicing is reducing entry barriers.
- The report is based on credit bureau data of about 16 crore credit-active women and primary research among rural nano-entrepreneurs.