Women are emerging as a key growth engine in India’s credit market, with their share in total system lending rising to 26% and outstanding credit expanding nearly five-fold since 2017, according to a joint report by TransUnion CIBIL, NITI Aayog and MicroSave Consulting.

As of 2025, women borrowers account for a credit portfolio of ₹76 lakh crore, with penetration rising from 19% in 2017 to 36%, reflecting a steady expansion in formal credit access.

“Women today account for 26% of total system credit, with portfolio balances expanding nearly five-fold since 2017,” the report said.

NITI Aayog CEO Nidhi Chhibber said the shift reflects deeper structural changes in the economy. “Women are increasingly shaping and benefitting from these shifts… moving beyond entry-level credit towards retail and business-purpose lending,” she noted, adding that access to finance is a “structural enabler of women’s economic participation.”

From microfinance to enterprise credit

The report points toward a structural shift in how women engage with credit, moving beyond small-ticket microfinance loans toward retail and business-purpose borrowing.

While microfinance remains the primary entry point into formal credit, women borrowers are increasingly graduating to higher-value products such as housing, gold and personal loans, and eventually business credit.

“Graduation from microfinance into diversified credit products signals strengthening financial capability and deeper economic integration,” the report said.

The share of business-purpose loans in women’s credit portfolios has risen from 16% in 2017 to 25% in 2025, indicating a gradual transition from consumption-led borrowing to income-generating activities.

Women entrepreneurs have emerged as one of the fastest-growing segments within the credit ecosystem, with business loan portfolios expanding 7.5 times since 2017 and the number of women availing such loans growing at a compound annual rate of 31% over the past three years.

TransUnion CIBIL MD & CEO Bhavesh Jain said the shift is visible in credit data trends. “More women are availing formal credit and they are also borrowing to fulfil a diverse range of needs,” he said, adding that financial inclusion must evolve “from first-time access to long-term empowerment.”

Digital infrastructure reshapes access

The shift has been enabled in large part by India’s expanding digital public infrastructure, including Aadhaar-based e-KYC, UPI payments and paperless underwriting systems.

“Digitization is emerging as a critical enabler… lowering historical barriers to formal credit for women,” the report said.

Digital transactions are creating verifiable financial footprints, allowing lenders to assess creditworthiness more effectively and extend loans to first-time borrowers with limited formal histories.

As a result, loan approval timelines have compressed significantly, with same-day approvals in consumption loans rising from 34% in 2022 to 45% in 2025.

Anna Roy, programme director at NITI Aayog, said the next phase of inclusion will depend on sustained engagement. “The focus will be not only on access, but on how steadily women progress within the formal financial system,” she noted.

Growth broadens, but gaps remain

Despite the strong momentum, the report notes that women’s credit journeys remain uneven.

Most first-time borrowers continue to enter the system through consumption and gold loans, indicating that access is still driven by immediate household or liquidity needs.

At the same time, penetration in advanced business credit products such as cash credit and overdraft facilities remains low, suggesting significant headroom for deeper financial integration.

“Digital access… is a necessary condition for progression… but not a sufficient one,” the report cautioned, pointing to gaps in sustained and independent usage.

The findings suggest that India’s credit market is entering a new phase, where the focus is shifting from expanding access to enabling progression.

MicroSave Consulting senior partner Akhanda Jyoti Tiwari said enabling women entrepreneurs to effectively use financial systems will be critical. “The opportunity ahead is not merely to extend credit more widely, but to design systems that enable sustained economic mobility,” he said.