NITI Aayog’s Report on Women’s Financial Empowerment

March 4, 2025

NITI Aayog recently published a report titled From Borrowers to Builders – Women’s Role in India’s Financial Growth Story. This report marks the increasing participation of women in seeking credit and managing their financial health. As of December 2024, 27 million women were monitoring their credit scores. This reflects a 42% increase from the previous year, indicating rise in financial awareness among women in India.

Women’s Financial Participation

The report reveals that women’s engagement in financial activities has tripled from 2019 to 2024.
This trend is particularly strong in semi-urban and rural areas, where 60% of women borrowers reside.
Women are increasingly taking loans for diverse purposes, including business, agriculture, and property.

Growth in Credit Monitoring

Women’s share of the self-monitoring credit base rose to 19.43% in December 2024.
This increase from 17.89% in 2023 shows growing financial literacy.
Notably, non-metro regions saw a 48% increase in women actively monitoring their credit compared to 30% in metro areas.

Regional

Maharashtra, Tamil Nadu, Karnataka, Uttar Pradesh, and Telangana accounted for nearly half of all self-monitoring women.
The southern region led with 10.2 million women.
Northern states like Rajasthan and Madhya Pradesh exhibited the highest growth rates in active women borrowers over five years.

Loan Preferences and Trends

Women’s preferences for credit products include loans against property (36%), agricultural loans (26%), and business loans (25%).
By December 2024, women made up 35% of business borrowers, with a 14% increase in business loan origination since 2019.

Challenges in Financial Access

Despite progress, challenges remain. Issues such as credit aversion, poor banking experiences, and barriers related to collateral hinder women’s access to credit. Financial institutions must address these challenges by creating gender-smart financial products tailored to women’s needs.

Socio-economic Impact

Women’s financial participation is crucial for India’s economic growth. Encouraging women entrepreneurship can create up to 170 million employment opportunities. This shift not only empowers women but also contributes to broader economic development.

The Role of Financial Institutions

Financial institutions are encouraged to design inclusive products that cater to women’s unique financial needs. Initiatives like the Financing Women Collaborative aim to encourage an ecosystem that supports women entrepreneurs through access to credit and financial literacy.

Future Directions

To sustain this momentum, targeted interventions are essential. There is a need for programmes that promote financial literacy among younger women, who currently represent only 27% of retail credit consumers under 30. Bridging this gap will enhance financial security and encourage entrepreneurship.

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