These days, women in India are seeing a significant shift toward financial independence. In the last five years, women’s borrowing has grown at 22% every year, clearly indicating a turning point toward economic self-independence. This avalanche of borrowers is not just the urban women; those living in rural and semi-urban areas are also taking part in this financial liberation.
Why Loan-Away Women?
The trend is mainly due to the increasing numbers of expenses making a claim on money within the home. TransUnion CIBIL and Microsave Consulting (MSC) jointly prepared a report with the support of NITI Aayog that documents, among others, how women take loans for consumer purchasing requirements such as purchasing household items, financing education, and health care. While 2019 saw a four-point-six-fold growth in loan apps for women who took loans for business purposes, that category is tiny compared to other loans availed yet.
Breakdown of The Loans Taken by Women in 2025
The report gives the following distribution of loans among women:
- 42% for loans mainly related to personal needs, dowries, or consumer durables, or home ownership.
- 38% for loans secured against gold indicating a preference for secured borrowing.
- Only 3% for business loans indicating an untapped opportunity for women in entrepreneurship.
- This shows there is a need for financial products customized to service the varied needs, especially in rural and semi-urban areas.
A Need for Financial Awareness Among Women: A Positive Change
Illicitly near the most inspiring trend happening is the skyrocket of financial involvement on the part of women. By December 2024, an estimated 2.7 crore women were actively tracking their credit scores, bearing out their resoluteness to enable their financial health. The shift is largely felt among the younger-women’s tag that is taking charge of their financials and debt handling.
Government Initiatives Driving Change
The Indian government and financial institutions are in the forefront of empowering women through inclusive policies and initiatives. BVR Subramaniam, CEO of NITI Aayog, remarked that finance is a primary requirement for women entrepreneurship. He stressed that financial products must be designed with considerations specific to the problems encountered by women.
Anna Roy, Mission Director of the Women Entrepreneurship Platform (WEP), spoke about the potential of the women-led businesses to generate employment and thereby provide economic independence. These initiatives empower not only women but also fuel the economic growth of the nation.
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