The report further said that despite 36% credit penetration, nearly two-thirds of credit-eligible women (aged 18–64) remain unserved, representing a large untapped segment for inclusion and growth.
“India’s growth trajectory is increasingly shaped by the expanding economic participation of women, enabled by rapid digitization across identity, payments, underwriting, and loan servicing,” the Aayog said in its report ‘From Borrowers To Builders: Women and India’s Evolving Credit Market’. The report has been jointly written by Aayog, Transunion CIBIL and Microsave Consulting.
“Over the past decade, these structural shifts have materially lowered entry barriers to formal credit, allowing women to transition from informal borrowing to scalable, structured financial pathways,” it added.
As per the report, in retail credit, women’s first loans remain predominantly consumption-led, with digital sourcing playing a critical role in reducing friction and improving access while in business lending, women entrepreneurs have emerged as a strong growth cohort, with portfolio balances increasing 7.5 times since 2017.
“The next phase of opportunity lies in strengthening financial visibility, accelerating graduation from entry-level credit to higher-value products, and supporting sustained enterprise growth,” it suggested, adding unlocking this pathway will advance women’s contribution to India’s long-term economic growth.
The report proposes strengthening data use while ensuring regular gender-bias audits in credit models along with developing lifecycle-linked gender intelligent product bundles and youth-focused credit entry pathways, particularly for women under 35, integrating savings, credit, and digital financial literacy.
“Early financial anchoring can strengthen retention, deepen product diversification, and enhance long-term portfolio value,” it added.