Women are fulfilling their dreams by obtaining loans, a positive news has arrived

Women across the nation are pursuing their interests by obtaining loans from financial institutions. The majority of these women hail from semi-urban and rural regions. According to a report titled ‘From Borrowers to Builders: Women’s Role in India’s Financial Growth Story’ released by the think tank Niti Aayog, women accounted for 42 percent of loans taken for personal expenses, consumer goods purchases, and home ownership.

The report further stated…

The report also indicates that women are increasingly monitoring their credit scores. Over the past five years, the number of women securing loans has risen by 22 percent. BVR Subramaniam, CEO of Niti Aayog, noted that women primarily utilize these loans to satisfy their consumption needs, while only three percent of loans are directed towards business ventures. Additionally, 38 percent of women have taken loans against gold assets.

Women are actively working to enhance their financial independence

The number of accounts opened for business purposes has surged by 4.6 times since 2019. The northern and central states, particularly Uttar Pradesh, Rajasthan, and Madhya Pradesh, have seen the highest levels of female loan participation in the past five years. Women are actively working to enhance their financial independence, presenting a significant opportunity for banks and financial institutions to extend loans to them. The report highlights that women encounter numerous challenges when applying for loans, often facing difficulties due to insufficient information regarding guarantors and banking regulations. Young women are increasingly vigilant about their credit scores, with a remarkable annual growth rate of 56% in this demographic.

In 2024, Maharashtra, Tamil Nadu, Karnataka, Uttar Pradesh, and Telangana are projected to represent 49% of young women monitoring their credit scores. Anna Roy, Chief Economic Advisor of NITI Aayog, asserts that empowering women will bolster their participation in the workforce, with the promotion of women entrepreneurship potentially engaging an additional 15 to 17 million women in economic activities.