There is a significant gender disparity in access to credit in India, with women making up only 28% of total borrowers. However, there has been an increase in credit access from 7% in 2017 to 14% in 2022.

Women face a higher loan rejection rate of 19% compared to 8% for men, which is primarily due to their lower participation in the formal workforce. Only 33.2% of women are engaged in the formal workforce, compared to 77% of men. This limited workforce engagement affects their financial decision-making and household income contributions. Additionally, women's ability to provide collateral is constrained by lower home ownership rates. Only 42% of women own homes, while 62% of men do.

Despite these challenges, women demonstrate better loan repayment performance and lower delinquency rates. Experts estimate that with targeted initiatives from the government and financial institutions, women's credit portfolios could triple by 2030. The Indian government has allocated $36 billion in the latest budget for women empowerment initiatives in areas such as health, education, and skill development, with the aim of bridging the credit gap and enhancing women's economic participation.