Credit Barriers Continue To Affect Women’s Property Ownership In India

Women have taken significant strides in education, workforce participation, financial inclusion and even homeownership. However, women in India continue to face substantial hurdles in having access to housing finance and owning property. As per a report by Urban Money, Women and Housing Finance in India: Progress, Barriers and the Opportunity, there’s a huge disconnect between the aspirational society for women and their opportunity for participation.

The report highlights this disconnect between the two, especially in the housing finance space. Owning a home is not just confined to a gender; it is a sign of stability and financial safety for everyone. Real estate is a piece of asset for everyone as it provides financial security, opportunities for wealth creation, and a great sense of independence. However, despite all these factors, it does not translate into ease of ownership or borrowing power.

The key finding of the report is the low share of women among the approved home loans. In 2025, women accounted for a mere 11 per cent of all the home loans approved. Moreover, the average home loan disbursed also stood at Rs 23 lakh, which is much lower than the average sanctioned loan size for men at Rs 29 lakh. These figures underscore the persistent gender gap in the housing finance sector, despite so many improvements and schemes being released to promote participation.

“Today, more women attain higher education, join the workforce, launch businesses and engage with formal financial instruments such as mutual funds, insurance and retirement plans. However, this progress has not fully translated into access to housing finance and property ownership. Numbers indicate that women’s share in overall retail credit is substantial, with strong representation in segments such as gold and education in recent years, but the share in home loan borrowers remains well below parity. This anomaly highlights structural and behavioural barriers, including persistent income gaps, limited continuous employment histories, thinner credit files and lower credit scores, that disproportionately affect women’s borrowing capacity,” reasons Kanika Shori, COO and Founder, Square Yards.

Another challenge highlighted in the report is workforce participation. While education has improved significantly, its representation in the corporate leadership segment remains low. Women only account for 28 per cent in corporate jobs in 2025, as per the report, this percentage further declines for roles at senior and managerial levels. This underrepresentation directly affects the income growth and long-term borrowing capacity.

While government incentives such as reduced stamp duty for women in several states, lower lending interest rates, and even tax benefits encourage property purchase. However, these incentives are not as helpful at the grassroots level. The report also highlights how, in order to improve women’s participation, it would require much stronger support for independent credit building as well as awareness.