Women Leading India's Credit Expansion with share of 50%: hold 43.5% of gold loans

• Women borrowers grew at 14.2% CAGR (2020-2025), reaching 8.9 crore

• Women's loan portfolios grew 23.4% YoY vs 16.7% for men

• Lower delinquency rates: 2.8% for women vs 3.3% for men

• Strong presence in secured loans: 43.5% of gold loans, 36.7% of education loans

• Women account for 50.4% of business loan volumes

• New-to-credit women borrowers increased from 33% to 41% (2023-2025)

India is witnessing a remarkable transformation in its credit market, with women borrowers emerging as powerful drivers of growth across multiple financial sectors. Recent findings from CRIF High Mark's "The Credit Goes to Her" report illuminate how women are not only increasing their participation in formal finance but are also demonstrating stronger credit behavior than their male counterparts.

According to the latest data, the number of women borrowers in India surged to 8.9 crore by December 2025, reflecting a compound annual growth rate of 14.2% since December 2020. This growth significantly outpaces the 8.2% increase observed among male borrowers during the same period.

What's particularly striking is the pace at which women's financial portfolios are expanding. Their outstanding loan amounts grew by 23.4% year-over-year in December 2025, compared to 16.7% for men. Active loans held by women increased by 14.8% - more than double the growth rate seen among male borrowers. These figures point to a deeper integration of women into India's formal financial ecosystem.

Women borrowers are also proving to be more reliable when it comes to repayment. Their overall delinquency rate (payments 31-180 days past due) stood at just 2.8%, compared to 3.3% for men. This superior repayment behavior reinforces the business case for increasing women's access to financial services.

Secured Loans Leading the Way

Women's participation is especially strong in secured lending categories. They now represent 43.5% of gold loan portfolios, 36.7% of education loans, and 32.2% of home loans. In housing finance specifically, women account for a third (33.2%) of new loan originations by value, with their average loan size reaching ₹33.9 lakh - outpacing the male average of ₹30.7 lakh.

This trend suggests that women are increasingly making major financial decisions and investments in assets that build long-term wealth and security.

Rising Entrepreneurial Activity

Perhaps most encouraging is the growing presence of women in business credit. Women now account for more than half (50.4%) of business loan volumes and 28% of business loan originations by value. Secured business loans to women entrepreneurs grew by an impressive 61.1% year-over-year, while their share in unsecured business lending increased from 23.7% to 26.5% over just one year.

However, there remains room for growth. The average business loan size for women stands at ₹5.3 lakh, considerably lower than the ₹11.6 lakh average for men. This gap indicates potential for further expansion of women-led enterprises with appropriate financial support.

Vehicle Financing Shows Premium Trends

In automotive financing, women represent approximately 18-19% of both loan volumes and values. Auto loan originations for women grew by 10.1% year-over-year in the first nine months of FY26, with women consistently securing higher average ticket sizes than men. Similarly, in two-wheeler financing, women's borrowing increased by 12% to reach ₹17,523 crore in FY26, outperforming overall industry growth.

Personal Loans as Gateway to Credit

Small-ticket personal loans are increasingly serving as entry points for women into formal credit markets. Women now represent 15.9% of personal loan volumes and 17.4% of total value. Notably, women under 30 years of age account for 24.3% of personal loan originations by value - higher than the proportion for men in the same age bracket.

Women's average personal loan size stands at ₹71,700, compared to ₹64,200 for men, though growth in ticket size has moderated as more first-time borrowers access smaller loans.

New-to-Credit Expansion

One of the most significant shifts is occurring among first-time borrowers. Women's share in new-to-credit originations jumped dramatically from 33% in December 2023 to 41% in December 2025. This sharp increase highlights the effectiveness of financial inclusion efforts targeting women.

Geographic Patterns

The top 10 states account for 78.2% of women's credit portfolios, with Maharashtra, Tamil Nadu, and Karnataka leading in absolute terms. However, southern states show particularly strong participation rates, with women representing 37.5% of borrowers in Tamil Nadu, 35% in Kerala, and 34.4% in Andhra Pradesh.

Across these states, women's credit portfolios are growing faster than men's, signaling a broader shift in financial inclusion throughout these regions.

As women's total outstanding loan portfolio reached ₹44.9 lakh crore in December 2025, up substantially from ₹30.7 lakh crore in December 2023, it's clear that India is experiencing a fundamental transformation in its credit landscape - one where women are increasingly taking their rightful place as active participants in the financial system.