Women Borrowers on the Rise: CIBIL-Niti Aayog Report Shows 22% CAGR Over Five Years

The financial landscape is witnessing a significant shift as more women are actively participating in credit markets. According to a recent report by CIBIL and Niti Aayog, the number of women borrowers has grown at a compound annual growth rate (CAGR) of 22% over the past five years. This surge highlights a broader trend of financial inclusion and economic empowerment among women in India.

Key Findings of the Report

Increase in Credit Awareness – More women are becoming financially literate and seeking credit to fulfill personal, educational, and entrepreneurial aspirations.
Diverse Borrowing Patterns – Women borrowers are availing loans across multiple categories, including home loans, personal loans, education loans, and business financing.
Improved Credit Profiles – The report notes that women tend to have better credit discipline, leading to lower default rates compared to their male counterparts.
Urban and Rural Participation – While urban women have historically been more active in the credit market, there is a notable rise in rural women accessing formal credit through microfinance institutions and self-help groups.

Factors Driving the Growth

Government Schemes and Policy Support – Initiatives like MUDRA loans, Stand-Up India, and other financial inclusion programs have encouraged women to seek credit for entrepreneurship and self-employment.
Rising Female Workforce Participation – More women joining the workforce has increased their financial independence and ability to access credit.
Technological Advancements – The rise of digital lending platforms and fintech innovations has made credit more accessible and convenient for women borrowers.
Better Credit Education – Awareness campaigns and financial literacy programs have empowered women to make informed borrowing decisions.

Impact on the Economy

The increasing participation of women in the credit market has several positive implications for the economy:

Boosting Entrepreneurship – More women-led businesses contribute to economic growth and job creation.
Enhanced Financial Stability – Women’s strong credit discipline helps in building a healthier lending ecosystem.
Strengthening Financial Inclusion – More women accessing credit means a broader and more inclusive financial system.

Challenges and the Way Forward

Despite the encouraging growth, some challenges remain:

Limited Collateral and Credit History – Many women, especially in rural areas, lack sufficient credit history or collateral to secure larger loans.
Gender Bias in Lending – Some traditional financial institutions may still have conservative lending policies for women borrowers.
Need for More Tailored Financial Products – Banks and NBFCs need to design more customized credit products catering specifically to women’s financial needs.