Building Financial Freedom: The Role of Credit Scores for Women

Motherhood and caregiving responsibilities often lead many women to take breaks from their careers. These interruptions can impact long-term income stability and growth, making it more challenging for women to establish a strong financial track record or maintain a consistent credit history.

In recent years, there has been notable progress in the financial inclusion of women. More women are actively managing their finances, making independent decisions about property ownership, and pursuing financial independence — with homeownership emerging as a significant goal.

According to recent data, as of December 2024, more than 8.31 crore women in India are active borrowers, representing 20.85% of the total borrower base in the country. Over the last five years, the growth rate of women borrowers has reached 87%, surpassing that of male borrowers.

The outstanding loan portfolio held by women increased to ?36.5 lakh crore in December 2024, up from ?30.9 lakh crore in December 2023 — an 18% year-on-year growth. Similarly, the number of women with active loans rose to 8.3 crore in December 2024, compared to 7.5 crore the previous year, reflecting a 10.8% YoY increase. In comparison, male borrowers with active loans grew from 19.1 crore to 20.3 crore during the same period — a 6.5% rise.

These trends highlight the increasing financial participation and empowerment of women across the country.

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