The report has been jointly published by TransUnion CIBIL, Women Entrepreneurship Platform (WEP) of NITI Aayog, and MicroSave Consulting (MSC).
Key Highlights
- Steady Rise in Women Borrowers: Women seeking credit grew ~3X between 2019 and 2024, reflecting increased demand.
- Demographics of Women Borrower: 60% of women borrowers are from semi-urban or rural areas.
- Women under 30 only account for 27% of retail credit uptake by women, compared to 40% for men.
- Regional Status: Southern states have higher shares of women borrowers as compared to Northern and Central States
- Rise in Awareness: 27 million women borrowers had checked their credit information and score with CIBIL.
Challenges faced by Women Borrowers
- Credit Aversion: Women avoid formal loans due to social norms, fear of default repercussions, and complex application processes.
- Poor Banking Experience: Many banks are unwelcoming and fail to offer advisory services tailored to women’s needs.
- Limited Institutional Support: Women are perceived as higher-risk borrowers due to limited credit history and business experience.
- E.g. 79% of women-owned businesses are self-financed, with only 7% of MSME credit directed to women.
- Barriers to Credit readiness: Due to lack of necessary documentation, guarantors, and collateral.
- E.g. ~22.2% of women-led collective enterprises are not credit-ready.
Recommendations
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