Women in Southern India Have the Largest Quantity of Credit Well-being Assessments

In a significant development, the number of self-monitoring women borrowers in India has seen a substantial increase, particularly in non-metro areas. According to the report "From Borrowers to Builders: Women's Role in India's Financial Growth Story," authored by NITI Aayog, the number of self-monitoring women from non-metro areas has grown by 48% year-on-year, while those in metro areas have grown by 30% during the same period.

As of December 2024, a staggering 27 million women borrowers in India were actively monitoring their credit information report, representing a 42% increase from the approximately 19 million women who were doing so in December 2023.

This growth is a marked contrast to the figures from 2019, when there were only 8 lakh new loan accounts and Rs 0.7 lakh crore disbursement for business purposes. However, it is worth noting that these loans constituted only 3% of the overall loans availed by women borrowers in 2024.

The southern region has the highest number of self-monitoring women, with 10.2 million women. The top five states for self-monitoring women are Maharashtra, Tamil Nadu, Karnataka, Uttar Pradesh, and Telangana, accounting for 49% of all self-monitoring women.

The report also highlights that consumption loans remain the most preferred credit product among women borrowers. In CY 2024, the number of new loan accounts opened by women for business purposes saw a growth of approximately 37 lakh, with disbursement totaling Rs 1.9 lakh crore.

Anna Roy, Principal Economic Advisor at NITI Aayog and Mission Director of the Women Entrepreneurship Platform (WEP), stated that promoting women's entrepreneurship could create employment opportunities for 150 to 170 million people while driving women's participation in the labor force.

The report shows that the number of women seeking credit in India has grown at a compound annual growth rate (CAGR) of 22% since 2019. Moreover, more women borrowers from non-metro regions are active in self-monitoring their credit compared to women borrowers from metro areas. Interestingly, 60% of the borrowers for this increased credit are from semi-urban and rural areas.

The women's share of the total self-monitoring base increased to 19.43% in December 2024, up from 17.89% in 2023. This growth signifies a positive trend towards financial inclusion and empowerment of women in India.

The report "From Borrowers to Builders: Women's Role in India's Financial Growth Story" was released on Monday. While this news does not directly relate to the upcoming I-T Bill that the Finance Minister is set to place in LS on Monday (as per a separate news article), it underscores the government's commitment to women's financial empowerment and economic growth.