Winning Bizness Desk
Mumbai.Women across India are increasingly taking loans not just for personal needs but to start and grow businesses, the government has told Parliament. Over the past five years, the number of women borrowing for business purposes has doubled, reflecting rising financial awareness, greater access to credit and stronger participation in formal schemes designed to promote entrepreneurship.
Finance minister of state Pankaj Chaudhary informed the Lok Sabha that the number of women taking retail loans has risen 2.14 times, while those borrowing under micro, small and medium enterprise (MSME) categories have increased 2.62 times in the same period. This shift shows women are progressively becoming business borrowers rather than only household borrowers.
Retail and msme loans see significant growth among women
Government figures shared in the House show a clear rise in women’s share of business credit. The proportion of business loans taken by women has grown from 9 percent in 2019 to 16 percent by December 2024. Officials said this indicates that women are increasingly confident about launching and expanding enterprises with the help of formal credit.
The minister said the increase is not limited to one sector but spans across retail credit for personal business needs and MSME credit for more structured enterprise activity.
Government schemes deepen women’s credit participation
Women are also leading in several flagship schemes intended to improve financial inclusion and entrepreneurial opportunity. According to the data presented:
- 54 percent share of women in Jeevan Jyoti life insurance
- 51 percent in Suraksha insurance
- 82 percent participation in Stand-Up India loans
- 67 percent share in Mudra loan accounts
These figures show pronounced women participation in programmes aimed at boosting financial empowerment and risk protection.
Mudra scheme linked to employment creation
To assess the impact of the Mudra loan scheme on small business creation and employment, the government commissioned two separate studies. Results from the 2018 national survey by the labour and employment ministry indicate that between 2015 and 2018, Mudra loans helped create around 11.2 million additional jobs nationwide, suggesting credit has a direct role in livelihood generation.
Demand high in northern and eastern states
Loan account data reveals that demand among women borrowers is particularly strong in several northern and eastern states. The total number of loan accounts in major states include:
Bihar – 4.98 crore accounts
Tamil Nadu – 3.88 crore accounts
Uttar Pradesh – 3.57 crore accounts
West Bengal – 3.54 crore accounts
Maharashtra – 3.50 crore accounts
States such as Maharashtra, Tamil Nadu, Karnataka, Uttar Pradesh and Telangana have been noted for rapidly adopting credit empowerment measures for women.
Women increasingly track credit scores
Women are also becoming more aware of their financial health. Around 2.7 crore women are currently tracking their credit scores, marking a 42 percent increase compared to 2023. Officials said women are now focusing more on improving their financial profiles before applying for loans, aiming for easier terms and better interest rates.
Greater attention to timely repayments
More eligibility for formal lending
Stronger confidence in credit systems
This trend points to a broader cultural change where women are actively managing finances and using credit as a tool for economic participation.
