Women Hold 26 Per Cent System Credit As Portfolio Shifts To Business Loans: TransUnion CIBIL Report

The credit market for women in India is undergoing a major shift, driven by rapid digitalisation and improved credit delivery. Women in India now account for 26 per cent of total system credit, with their collective loan portfolio reaching Rs 76 lakh crore in 2025.

As more and more women become borrowers in India, the way they have been accessing and using credit has changed, according to joint research conducted by TransUnion CIBIL, NITI Aayog's Women Entrepreneurship Platform (WEP), and MicroSave Consulting.

Titled 'From Borrowers to Builders: Women and India's Evolving Credit Market', the report states that women now make up 26 per cent of all system credit, with their outstanding loan portfolio increasing to Rs 76 lakh crore as on 2025. As per the study, women now show a definite trend of shift from consumption to enterprise-based credit, as well as digitalisation in the process.

Increasing Credit Penetration And Fast Growth

The number of female borrowers has seen a 9 per cent Compound Annual Growth Rate (CAGR) between 2017 and 2025. Over these eight years, their outstanding credit portfolio expanded by 4.8 times, significantly outpacing the 2.9 times growth recorded in the total outstanding credit for the entire system.

While credit penetration among women borrowers was 19 per cent in 2017, it has gone up to 36 per cent in 2025, creating around 16 crore new women borrowers.

Shift From Micro-Loan

Though micro-loans have always been the traditional type of loans available for women borrowers, the study highlighted that more women are turning towards other forms of credit.

Around 19 per cent of active micro-lenders have taken retail or business loans. Among these, business, personal, and gold loans have emerged as the most common sources of credit for women.

However, the micro-portfolio has grown only by 2.9 times from 2017, as compared to other loan categories.

Entrepreneurial Credit As Major Growth Driver

Women entrepreneurs have become a primary source of credit growth, with an annual growth rate of 31 per cent over the last three years. During this same period, the portfolio balance specifically related to business lending increased by 7.5 times.

The proportion of business loans to the total credit borrowed by women has increased to 25 per cent as compared to 16 per cent. Even with this progress, the report concludes that more complex financial products, such as overdrafts and cash credits, are not used by women business owners, creating a product awareness or accessibility gap.

Digitalisation In Credit

Digitalisation has played a crucial role in increasing women's participation in the credit market. In case of consumption-based loans, share of applications approved on the same day increased from 34 per cent in 2022 to 45 per cent in 2025.

Nonetheless, there is no homogeneous digital adoption across all demographics. Most women are happy with the basic payments they make online, but their participation in the more sophisticated online finance and business activities is uneven.

Credit Usage Left Unexplored

Even with the rapid progress, it is evident that the scope of credit usage among women is still significantly unexplored. More than two-thirds of credit-eligible women in India still do not access credit through the formal financial sector.

Among the female borrowers, more than one-third have taken loans through only one channel, highlighting a scope for further growth in female borrowers' credit penetration.

The report has suggested that success will depend on targeted efforts in financial education and digital literacy. Developing financial products specifically designed to meet the unique needs of women will be essential to closing the remaining gaps in the market.