India’s Women Driving Financial Growth: Credit Awareness on the Rise

Women Driving India’s Financial Growth: A New Era of Credit Awareness

NITI Aayog recently released a report titled “From Borrowers to Builders: Women’s Role in India’s Financial Growth Story.” This study highlights how Indian women are becoming more financially aware. They are not only taking loans but also actively monitoring their credit scores to manage their financial health better.

Women Taking Charge of Their Credit Scores

As per the report, by December 2024, 2.7 crore (27 million) women checked their credit scores themselves—a 42% increase compared to 2023. This significant rise shows that women are taking charge of their financial decisions and working towards improving their creditworthiness.

Who Released the Report?

The report is a joint effort by NITI Aayog’s Women Entrepreneurship Platform (WEP), TransUnion CIBIL, and MicroSave Consulting (MSC). During the launch event, NITI Aayog CEO BVR Subrahmanyam emphasized the government’s commitment to ensuring better financial access for women entrepreneurs.

Government’s Efforts for Women’s Financial Inclusion

The government is encouraging financial institutions to design inclusive financial products tailored to women’s needs. One such initiative is the “Financing Women Collaborative (FWC)”, aimed at bringing more institutions on board to support women’s financial empowerment.

A Remarkable Growth in Non-Metro Cities

A major highlight of the report is the rapid rise in credit awareness among women in non-metro areas. Women in smaller towns and cities have increased their credit score monitoring by 48%, while in metro cities, this growth is 30%. This proves that financial empowerment is spreading beyond big cities, reaching women in smaller regions as well.

Additionally, the percentage of women actively monitoring their credit scores rose to 19.43% in 2024, up from 17.89% in 2023.

Which States Lead in Women’s Financial Participation?

According to the report, the highest financial participation of women was recorded in:

• Maharashtra, Tamil Nadu, Karnataka, Uttar Pradesh, and Telangana—contributing to 49% of total women borrowers.
• South India alone saw 1.02 crore (10.2 million) women actively checking their credit scores.
• In North and Central India, states like Rajasthan, Uttar Pradesh, and Madhya Pradesh witnessed a fast-growing number of women borrowers.

Why is Credit Score Monitoring Important for Women?

1. Greater Financial Independence: Women can make their own financial decisions with confidence.
2. Easy Loan Approvals: A good credit score helps in getting personal, business, or home loans effortlessly.
3. Economic Stability: Improved financial awareness leads to better savings and investment habits.
4. Boosting Women Entrepreneurship: Women-led businesses can access credit more easily, fostering economic growth.

Conclusion

This shift in financial awareness marks a new era for women in India. They are no longer just borrowers but builders of their financial future. With growing awareness, better financial tools, and government support, Indian women are set to redefine financial empowerment in the country.