Women in Credit: Increasing Representation of Women in the Credit Sector Driven by Digital Platforms
Women borrowers in India have made significant strides in the credit landscape, now accounting for an impressive Rs 76 lakh crore, or 26% of the total credit system as of 2025. This marks a nearly five-fold increase since 2017, indicating a transformative shift in how women engage with financial services. A recent report from TransUnion CIBIL, in collaboration with Niti Aayog’s Women Entrepreneurship Platform and MicroSave Consulting, highlights that women are transitioning from passive beneficiaries to active participants in credit demand, with a notable growth in formal credit uptake.
Growth in Credit Demand Among Women
The report reveals that the number of women accessing formal credit has grown at a compounded annual growth rate (CAGR) of 9% between 2017 and 2025. This growth is significantly higher than the overall credit growth rate of 2.9% during the same period. Bhavesh Jain, Managing Director and CEO of TransUnion CIBIL, emphasized that the expansion of digital infrastructure has played a crucial role in this trend. It has enabled easier onboarding, quicker loan processing, and improved access to information, which has empowered more women to engage with the financial system.
Furthermore, women’s share in retail loan originations has increased from 24% in 2022 to 27% in 2025. This growth is evident across various segments, with women’s participation in housing loan originations rising from 63% to 69%. Additionally, their share in consumption credit has grown from 16% to 19%, and in gold loans, it has increased from 36% to 37%. The report also highlights that the proportion of new-to-credit women borrowers in retail credit has surged by 10 percentage points, reaching 38% in 2025, indicating a significant expansion into previously underserved segments.
Impact on Economic Participation
The report underscores that increased access to credit is translating into greater economic participation among women. The number of women with active business-purpose loans has seen a remarkable CAGR of 31% over the past three years, reflecting a shift towards entrepreneurial activities. The digitization of financial services has also contributed to this trend, with same-day approvals for consumption loans rising to 45% in 2025, up from 34% in 2022. This efficiency has encouraged more women to explore complex financial products, with approximately 19% of active microfinance borrowers now holding individual retail or commercial loans.
Nidhi Chhibber, CEO of Niti Aayog, noted the importance of access to finance as a structural enabler of women’s economic participation. Initiatives like the Women Entrepreneurship Platform and the Financing Women Collaborative aim to strengthen coordination within the ecosystem, further supporting women’s financial empowerment.
Recommendations for Future Growth
The report outlines several recommendations to enhance women’s participation in the credit market. It suggests that lenders should leverage digital transaction data, such as UPI histories, for underwriting purposes, particularly for borrowers lacking collateral. Strengthening last-mile digital capabilities through collectives and peer networks is also advised to build trust among potential borrowers.
Additionally, the report calls for the development of lifecycle-based financial products that integrate savings, credit, and financial literacy, specifically targeting women under 35. It emphasizes the need for better risk segmentation and the use of alternative data to include unserved women in the financial system while maintaining portfolio quality.
To track progress effectively, the report recommends focusing on metrics such as graduation rates and multi-product holding rather than solely on disbursement volumes. It also advocates for vernacular and voice-enabled digital models and the integration of non-financial support, such as market linkages, to help women-led businesses scale.
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