More Than Four Crore Loans Worth INR 4.8 Lakh Crore Taken by Women in 2024: NITI Aayog Report The number of women borrowers availing retail credit has grown at a Compound Annual Growth Rate (CAGR) of 22 per cent between 2019 and 2024.
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India's economic growth has been remarkable in recent years, with an 8.2 per cent GDP expansion in FY23-24, positioning it among the fastest-growing economies globally. Projections for 2024-25 estimate a robust 6.5-7 per cent growth, driven by strong domestic demand and key structural initiatives like 'Make in India' and 'Digital India.' Amidst this economic surge, women entrepreneurs are playing an increasingly vital role, transforming India's financial landscape.
As per NITI Aayog's latest report, 'Borrowers to Builders: Women's Role in India's Financial Growth Story,' women have emerged as significant contributors to the economy. The Female Labour Force Participation Rate (FLFPR) has witnessed a steady rise from 23.3 per cent in 2017-18 to 41.7 per cent in 2023-24, with rural women leading the charge. This increase is not just a reflection of employment growth but a shift towards entrepreneurship, with women leveraging financial opportunities to establish businesses. With India's working-age population projected to exceed one billion within the next decade, fostering women-led entrepreneurship is not only a matter of gender inclusivity but a necessity for sustainable economic expansion.
Access to finance remains a key enabler of this transformation. In FY 2023-24 alone, loans amounting to INR 2.22 lakh crore were disbursed to 4.24 crore women entrepreneurs under the Pradhan Mantri Mudra Yojana (PMMY). Additionally, 30.6 lakh women street vendors benefited from working capital loans worth INR 5,939.7 crore through the PM SVANidhi Yojana as of December 2024. These financial support mechanisms are not just facilitating business ventures but also fostering long-term economic stability for women entrepreneurs.
Shri B.V.R. Subrahmanyam, CEO of NITI Aayog, emphasized the need for an inclusive financial ecosystem to further drive this momentum. "The government recognizes that access to finance is a fundamental enabler for women's entrepreneurship. The Women Entrepreneurship Platform (WEP) continues to work towards building an inclusive ecosystem that fosters financial literacy, access to credit, mentorship, and market linkages. However, ensuring equitable financial access requires a collective effort. The role of financial institutions in designing inclusive products tailored to women's needs, along with policy initiatives that address structural barriers, will be instrumental in accelerating this momentum. To achieve this goal under the aegis of WEP, Financing Women Collaborative (FWC) has been constituted. We seek more financial sector stakeholders to join FWC and contribute to this mission."
The growing participation of women in India's credit system further underscores this shift. The number of women borrowers availing retail credit has grown at a Compound Annual Growth Rate (CAGR) of 22 per cent between 2019 and 2024. This trend reflects not only an increase in financial inclusion but also a diversification in the types of credit women are accessing.
Credit for financing business purposes, including business loans, commercial vehicle loans, and loans against property, has witnessed a substantial uptick. Approximately 37 lakh new loan accounts were opened by women, with disbursements amounting to INR 1.9 lakh crore. Although the number of accounts opened for business purposes has increased by 4.6 times since 2019, these loans still constitute only 3 per cent of overall loans availed by women borrowers in 2024.
On the other hand, gold loans have gained widespread popularity, with around 4 crore loans amounting to INR 4.7 lakh crore being disbursed. This category now represents 38 per cent of all loans availed by women borrowers, marking a 5.1 times increase in volume since 2019. Credit for personal finance needs, including personal loans, consumer durable loans, home ownership loans, and vehicle loans, continues to be a dominant segment, accounting for 42 per cent of all loans availed by women in 2024, with a total of 4.3 crore loans worth INR 4.8 lakh crore.
Beyond direct credit access, government-backed initiatives have played a crucial role in fostering financial inclusivity for women. The Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE) provided 22 per cent of total guarantees for collateral-free loans to women entrepreneurs as of March 2024. Additionally, the Stand-Up India scheme has been a significant catalyst in promoting women-led businesses, with 84 per cent of 2.09 lakh sanctioned loans being granted to women by November 2023.
The rise of women entrepreneurs in India signals a critical shift towards a more inclusive and dynamic economy. While challenges such as credit aversion, structural barriers, and financial literacy gaps persist, the momentum is clear. With continued policy support, targeted financial instruments, and a collective effort from stakeholders, women entrepreneurs will not only contribute to economic growth but also redefine India's financial landscape. The transformation from borrowers to builders is well underway, and the future holds immense promise for women's participation in shaping India's economic success story.
