- Women Borrowers in India Show 42% Year-Over-Year Growth in Credit Health Monitoring, Reveals TransUnion CIBIL, WEP, and MSC Report
Udyamee, Ahmedabad: Women participation in businesses have gradually increasing and more women are taking the step toward entrepreneurship. The annual report, “From Borrowers to Builders: Women’s Role in India’s Financial Growth Story,” by TransUnion CIBIL, the Women Entrepreneurship Platform (WEP) of NITI Aayog, and MicroSave Consulting (MSC) reveals a fourfold increase in business loans availed by women over the last six years. In 2024, the number of new business-related loan accounts reached approximately 37 lakh, compared to just 8 lakh in 2019.
Though business loans still make up only 3% of the overall loans availed by women, this shift represents a growing interest in financial independence and entrepreneurship.
V. R. Subrahmanyam, CEO of NITI Aayog, acknowledged the critical role of financial access in empowering women entrepreneurs. “The Women Entrepreneurship Platform (WEP) is dedicated to creating an inclusive ecosystem with financial literacy, access to credit, and mentorship,” he said, calling for a collective effort from financial institutions and policy makers to enhance support for women-led businesses.
Credit Monitoring Drives Financial Action
The report emphasizes the direct correlation between credit monitoring and increased loan activity. Data from TransUnion CIBIL shows that 13.49% of women who actively monitor their credit information open a new loan account within a month of doing so. Moreover, 44% of women who tracked their credit scores saw improvements within six months, further highlighting the benefits of financial awareness.
Bhavesh Jain, MD & CEO of TransUnion CIBIL, pointed out that increased self-monitoring of credit scores is a positive trend, especially as it enables borrowers to make better financial decisions and improves their credit scores, allowing for better loan terms.
A New Era of Financial Awareness Among Women
Younger women are leading the charge in credit monitoring, with Gen Z women showing a remarkable 56% increase year-over-year, now comprising 22% of the self-monitoring women population. Millennials have also seen significant growth, with a 38% rise, making up 52% of the women actively monitoring their credit. This younger demographic’s strong embrace of credit health tools reflects an increasing awareness of financial independence and security.
Speaking on the findings, Anna Roy, Principal Economic Advisor at NITI Aayog and Mission Director of WEP, emphasized the importance of encouraging women entrepreneurship to create employment opportunities and drive equitable economic growth. “Women’s entrepreneurship could create jobs for 150 to 170 million people and enhance women’s participation in the workforce,” she stated.
