THIRUVANANTHAPURAM: Kerala is among the states where women are increasingly taking charge of their credit profiles. There is a significant growth in the number of women demonstrating financial independence through self monitoring and credit management, showed a report from the NITI Aayog.
The report titled ‘From borrowers to builders - Women’s role in India’s financial growth story’ provides insights into women’s financial inclusion. Kerala had the sixth-largest share in the state-wide contribution of self-monitoring women borrowers in 2024. Of the total women borrowers in the country, in absolute numbers, 6% were from Kerala. The state was ranked sixth in the list.
Maharashtra which has a 15% share in the total number of women borrowers was ranked first. It was followed by Tamil Nadu (11%), Karnataka (9%), Uttar Pradesh (7%), Telangana (6%) and Kerala (6%) (percentage rounded off, Kerala’s absolute number was lower than Telangana). Kerala is followed by Andhra Pradesh (6%, Gujarat (5%) and West Bengal (5%).
“Women are increasingly demonstrating financial independence through self-monitoring and credit management. This is a testament to their growing financial acumen,” the report said.
About 44 % of women who engage in self-monitoring see improvements in their credit scores within six months, reflecting the impact of increased financial awareness, it said. “The ranking is on the basis of the absolute number of borrowers. Kerala’s population size is relatively small and still it is positioned sixth.
This shows the high rate of financial inclusion in the state. Kerala’s ranking would have gone up if the parameter was self-monitoring as a percentage of borrowers,” said Kiran Kumar Kakarlapudi, assistant professor at Gulati Institute of Finance and Taxation, Thiruvananthapuram.
This argument gains relevance in the backdrop of the population projection report by the National Commission on Population. As per the report, Kerala’s total population in 2024 was 3.59 crore, including 1.72 crore males and 1.86 crore females.
The estimated number of females in Maharashtra was 6.11 crore, Tamil Nadu, 3.86 crore, Karnataka, 3.35 crore, Uttar Pradesh, 11.41 crore and Telangana, 1.90 crore.
“Self-monitoring is an indication of women’s financial automation and empowerment. It reflects how women are able to manage finances on their own. It is intrinsically linked to financial literacy and awareness about financial products,” said Kiran Kumar Kakarlapudi.
According to the NITI Aayog report, the major chunk of empowered women borrowers in Kerala were from its semi-urban areas, followed by rural areas and urban areas.