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Women lag in demat holdings, business credit

Women in India continue to lag behind men in both stock market participation and access to formal business credit
4 May 2026 by
Women lag in demat holdings, business credit
Business Highlights

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  • SEO Headline: Gender Gap in Finance: Women Lag in Demat Holdings and Business Credit Despite Growth

  • Target Keywords: Women Demat account statistics 2026, gender gap in Indian business credit, NITI Aayog credit report 2026, women stock market participation India, MSME credit for women entrepreneurs, From Borrowers to Builders report.

  • Meta Description: While women’s financial inclusion is rising, new reports from NITI Aayog and SEBI reveal a persistent gender gap in Demat account holdings and formal business credit in India.

The Financial Gender Divide: Why Women Still Lag in Demat Holdings and Business Credit

NEW DELHI — India’s financial landscape is undergoing a massive digital transformation, yet recent data reveals a stark "participation paradox." While women are increasingly entering the banking system, they continue to trail significantly behind men in high-growth areas: equity markets (Demat holdings) and formal business credit.

According to the April 2026 NITI Aayog report, “From Borrowers to Builders,” and recent exchange data, the gender gap remains a structural hurdle for India’s goal of becoming a $5 trillion economy.

The Demat Gap: Investing vs. Banking

While women now hold nearly 40% of all bank accounts in India, their presence in the stock market is far thinner. As of early 2026, women represent approximately 25% to 30% of total Demat account holders.

  • Independent Growth: While the number of women-owned Demat accounts surged from 6.7 million in 2021 to over 27.7 million by 2024, men still dominate nearly 70% of the market share.

  • The "Proxy" Factor: Brokerage data suggests that nearly 50% of women-owned accounts are managed by male family members (husbands or fathers), indicating that "ownership" does not always equate to financial "agency."

Business Credit: The Missing Trillions

In the credit market, the disparity is even more pronounced when shifting from personal consumption to business expansion.

  1. Systemic Share: Women currently account for only 26% of total system credit in India.

  2. The "Nano" Trap: A significant portion of women-led enterprises remain at the nano or micro-scale. While the CAGR for business-purpose loans to women grew at 31% between 2022 and 2025, the absolute volume remains low compared to male-led corporations.

  3. Collateral Barriers: Traditional credit models often require land or property as collateral—assets that are disproportionately held by men in India. This systemic bias forces many women entrepreneurs to rely on high-interest gold loans or microfinance instead of scalable commercial credit.

Positive Shifts: "From Borrowers to Builders"

Despite the lag, the NITI Aayog report highlights a "progression-led" shift. The total credit outstanding to women grew 4.8 times since 2017, reaching ₹76 lakh crore in 2025.

"Women are moving beyond entry-level micro-credit toward retail and business-purpose lending. This signals strengthening financial capability," stated Nidhi Chhibber, CEO of NITI Aayog.

The Road Ahead: Bridging the Divide

To close these gaps by 2030, experts suggest three key interventions:

  • Digital Footprints over Collateral: Using GST and digital payment history to underwrite loans for women who lacks physical assets.

  • Financial Literacy 2.0: Shifting focus from "how to save" to "how to invest and scale."

  • Policy Support: Schemes like Stand-Up India and the Women Entrepreneurship Platform (WEP) are working to link women directly to institutional investors, bypassing traditional gatekeepers.

While the "lag" is real, the trajectory is upward. As India’s digital public infrastructure (DPI) matures, the barrier to entry for women in both the boardroom and the stock exchange is finally starting to crumble.

Key Data Highlights (2026)

CategoryWomen's ShareGrowth Trend
Total System Credit26%Up 4.8x since 2017
Demat Account Holdings~30%Surge from 6.7M to 27.7M (2021-2024)
Active Business Loans31% (CAGR)Rising shift from Microfinance to Commercial
Bank Account Ownership39.7%Near parity in basic inclusion
Women lag in demat holdings, business credit
Business Highlights 4 May 2026
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