Active Borrowers Are Just One-Third Of Credit-Eligible Women: Niti Aayog
Active women borrowers in the lending ecosystem is just 16 crore or one-third of potential borrowers.
Chennai : Women borrowers hold a credit portfolio of Rs 76 lakh crore, registering a 4.8x increase since 2017. While there are 45 crore credit-eligible women, active women borrowers in the lending ecosystem is just 16 crore or one-third of potential borrowers. Hence, the growth potential for lending women is significant, finds Niti Aayog.
As of 2025, women borrowers hold a credit portfolio of Rs 76 lakh crore, accounting for 26 per cent of total system credit. The portfolio has recorded a 4.8x increase since 2017 with a compounded annual growth rate (CAGR) of 20% indicating steady growth each year.
While retail purpose loans still dominate as a category, the highest growth was noted in business purpose loans whose share of overall women borrowers lending increased from 16 per cent to 25 per cent - 9 percentage points increase between 2017 to 2025. Microfinance, which is currently on its path to recovery after a decline caused by borrower over-leveraging, has grown the slowest at 2.9x, compared to the relatively higher growth seen in other lending segments.
In business lending, women entrepreneurs have emerged as a strong growth cohort, with portfolio balances increasing 7.5x since 2017. A gradual shift towards revolving credit products such as cash credit and overdraft signals increasing financial sophistication and enterprise maturity.
Credit penetration among women has risen to 36 per cent taking the total credit active women borrowers in the lending ecosystem to 16 crore. Credit access for women increased from 19 per cent in 2017.
However, there are 45 crore credit-eligible women. Hence, the growth potential is significant. Strengthening financial literacy, product awareness, and digital credit infrastructure with gender intelligent products for women borrowers, can further accelerate credit penetration among women.
Nearly two-thirds of credit-eligible women remain unserved, representing a large, untapped segment for inclusion and growth. Even within the existing 36 per cent who are credit active, nearly half have held only a single credit product ever, indicating clear scope to deepen engagement and support their progression along the credit journey. Fully realising this potential requires a clearer understanding of women borrowers’ lived experiences, behaviours, and decision-making environments, finds Niti Aayog.
