India is making strong progress in the credit ecosystem, whether it is through digitalisation, better use of data and analytics, adoption of AI and machine learning, or expanding reach. It is also making credit accessible to segments of the population that were previously unbanked or underbanked.
In the last few years, lenders and other players in the credit ecosystem have not only worked to deepen credit for existing customers but also ensured it reaches deserving segments and empowers the wider population.
Women are driving the fastest growth in retail credit
As per the latest Credit Insights report, released by CRIF on the occasion of International Women’s Day, there are clear strides being taken to improve access to credit for women. According to this report, women borrowers have emerged as one of the fastest-growing segments in retail credit.
The growth rate for women borrowers stands at 14.2 per cent compounded annual growth rate (CAGR) over the past five years, which is significantly higher than that of men. In addition, the growth in active loans for women has been more than double that of men in the most recent year.
The overall portfolio for women borrowers accounts for nearly 27.6 per cent of the total retail credit portfolio by value. While this share has steadily increased over the past few years, it still accounts for only about one-third of overall lending, indicating significant headroom for growth.
Among new-to-credit customers, women now account for about 41 per cent, reflecting a strong expansion in credit access for women as first-time borrowers. The choice of credit products among women is influenced largely by the types of assets they hold, including culturally significant assets such as gold.
Loans against gold account for the largest share of lending to women, at about 43.5 per cent of the total portfolio. This is followed by home loans and education loans. One of the most notable trends is the sharp rise in business lending to women. Secured business loans to women have seen very strong growth, reflecting the increasing participation of women in entrepreneurship and business activities across the country.
This trend is also supported by a broader shift, where more women are entering the workforce or building their own enterprises. As financial participation increases, women are becoming more confident in managing their finances and using credit as a tool for growth and stability. Typically, rapid growth in any credit segment is associated with higher delinquency.
However, women borrowers continue to demonstrate stronger repayment behaviour compared to men. The delinquency rate for women is around 2.8 per cent, compared with about 3.3 per cent for male borrowers. This is also reflected in credit score distributions, where a higher proportion of women fall into the high-score, low-risk categories.
An underserved segment that could power the next credit boom
While all of these points point to rising participation and improving access, the overall share of women in total credit remains one-third, significantly lower than their economic presence. Yet, they consistently outperform men in repayment behaviour. This under-representation is also India’s biggest opportunity.
Although meaningful progress has been made through focused efforts by lenders and the broader ecosystem, there is still more to be done. India’s next major credit expansion will be driven by women – an under-leveraged, low-risk segment with significantly higher credit discipline.
However, access alone is not enough. There is a need for structured programs that build awareness, improve financial literacy, and equip women with the knowledge to make informed credit decisions at key stages of their life journey.
Access to credit is often a defining moment in an individual’s financial journey. For many women, reaching that moment can still be more challenging, not because the ambition is missing, but because traditional lending systems have not always been built around their realities.
Encouragingly, this is beginning to change, with focused efforts to address structural gaps and enable women to access credit more independently, including moving away from requirements such as mandatory male co-applicants.
At the same time, programs like ‘Credit Goes to Her’ are building a strong community to shape the future of credit for women by engaging lenders to rethink underwriting, strengthen credit education, and design more inclusive financial products. Together, these efforts signal a shift from access alone to true financial empowerment, where women are not just participants in the credit ecosystem but key drivers of its next phase of growth.
Disclaimer: The information provided in this article is for informational purposes only and does not constitute financial, legal, or professional advice. While every effort has been made to ensure accuracy, readers should verify details independently and consult relevant professionals before making financial decisions. The views expressed are based on current industry trends and regulatory frameworks, which may change over time. Neither the author nor the publisher is responsible for any decisions based on this content.
Sachin Seth, Regional Managing Director, CRIF India & South Asia
