Hi everyone,  

Welcome to the 146th edition of The Pattern, a weekly where we dive into the latest from the world of economy, technology and finance. Let’s get started. 

Empowering women is key to building a future we want – Amartya Sen  

This is not a mere statement but an economic reality of our country. Women are shaping India's financial landscape and becoming crucial parts of rewriting the growth story. In today's newsletter, we move beyond the stereotypes and examine the numbers that prove women are not just consumers but active economic contributors, builders, and decision-makers. 

Breaking barriers  

For decades, the narrative around women and finance has been limited to traditional stereotypes. The plot usually implies that they manage their home finances, save money, and spend on needs. Those were just mere assumptions. The data shows a far wider picture. From making strategic monetary decisions to securing loans, Indian women are accelerating economic growth. 

This year, the theme of International Women's Day 2025 is ' Accelerate Action '. That's precisely what Indian women are doing. They are taking action for their financial futures, fuelling the economy, and ensuring better credit health. 

Taking care of credit health  

A recent report by TransUnion CIBIL debunks the outdated belief that women are passive players in financial matters. Instead, Indian women are actively checking their credit health, so that it can lead to better financial outcomes. By the end of 2024, 27 million women were monitoring their credit scores— a 42% jump from 2023 . Nearly  44%  of these self-monitoring women improved their credit scores within six months by making timely payments and reducing debt. The new generation of women is also following the trend. A 56% increase in credit monitoring was recorded among Gen Z women, followed closely by millennials at 38%. 

This awareness is not limited to urban centres. More women from semi-urban and rural areas, particularly those under 30, are entering the credit landscape. 

Borrowing and building  

Along with managing finances better, women are more focused on building a better future for themselves. That's why they are now active borrowers, too. Between 2019 and 2024, the number of women taking loans grew at a staggering 22% CAGR . One important thing to note is that 60% of these borrowers are from smaller towns and rural areas. 

“Women’s participation in credit origination has seen notable growth in recent years. Since 2019, their share in Business Loans and Gold Loans has increased by 14% and 6% respectively. By 2024, 42% of loans availed by women were for personal finance, a slight increase from 39% in 2019. While the credit supply to women in business sectors has improved, the majority of loans availed by women continue to be against gold – 36% of all loans availed by women in 2024 were gold loans vs. 19% of loans availed in 2019.” said the report, titled From Borrowers to Builders: Women’s Role in India’s Financial Growth Story . 

Women are not just borrowing for personal consumption. They are investing to kick-start their entrepreneurial journey and business expansion. In 2024,  37 lakh new loan accounts were opened by women for business purposes. Additionally, loan disbursements grew to ₹1.9 lakh crore in 2024. This clearly shows the appetite for financial independence is growing.  

Women make up 39% of MSMEs in India. The number of women entrepreneurs is growing because they now have better access to credit and digital tools. Despite this growth, business loans still constitute just  3% of the total loans taken by women. 

Facing credit challenge  

Did you know that SHGs' bank repayment is more than 97% ? This means that women are ahead in their loan repaying game, yet they continue to face challenges in securing credit. 

Why? The lack of formal credit history. Traditional banking systems rely on the traditional credit assessment method, neglecting the alternative parameters. Thanks to the finance minister, the introduction of Grameen credit scores could help these women access formal credit without any barriers. 

Securing future  

Women are significant contributors to India's fast-growing economy. Data shows that in 2024, women's workforce participation rose to 41.7% from 23.3% in 2017-18. Thus, we can’t deny their impact on economic growth. 

From rural entrepreneurs to urban professionals managing credit smartly, women know what they want, and they are ready to take action.  

Read the full report here: https://www.niti.gov.in/sites/default/files/2025-03/From-Borrowers-to-Builders-Women%E2%80%99s-role-in-India%27s-financial-growth-story.pdf  

Reading List:  

1. RBI may make it tougher for you to get gold loans from banks  

2. Slowdown in credit card growth continues, disbursement at 4-year low  

3. Digital lenders, microfinance companies urge RBI to set interest rate formula for small loans  

4. Banks likely to go easy on funding to NBFCs  

Thank you for reading. If you liked this edition, forward it to your friends, peers, and colleagues. You can also connect with me on X here and follow FinBox on LinkedIn to always get all updates. 

Cheers, 

Mayank  

All opinions expressed are my own and do not necessarily reflect the views of FinBox or its promoters.