A recent report by TransUnion CIBIL reveals that the number of women borrowers in India has grown at a compound annual growth rate (CAGR) of 15 per cent over the last five years, compared to 11 per cent male borrowers. The report also states that in 2022, the number has grown to 63 million, accounting for 28 per cent of the total borrowers in India. However, this growth represents only a small fraction of the estimated population of 1.4 billion, of which approximately 454 million are women.
As per the report, women borrowers have a better risk profile than men, with 57 per cent of them having a score of prime (731-770) and above, compared to 51 per cent of male borrowers. Women borrowers also accounted for 23 per cent of business loans in December 2022. Among the top 12 states with the highest number of active borrowers, West Bengal, Rajasthan and Bihar have seen the highest growth in women borrowers between 2017 and 2022.
The share of women borrowers in semi-urban and rural locations grew at a CAGR of 18 per cent between 2017 and 2022, compared to 14 per cent growth in metro and urban areas. The overall share of women borrowers in semi-rural and rural locations has risen to 62 per cent, marking an increase of six percentage points during the same period.
The report's findings reflect the increasing number of women entering the workforce and becoming financially independent, which has led to a higher demand for credit. However, the report also suggests that there is still a long way to go, in terms of financial inclusion for women in India, given the country's large population and low penetration of credit. Nevertheless, with more women becoming financially independent and seeking credit, the report's findings suggest a positive trend towards greater financial inclusion.