Barriers to credit access for womens in India: A comparative study of rural and urban areas

Abstract

This study investigates the barriers to credit access for women in India, focusing on the disparities experienced between rural and urban populations. Despite various government initiatives aimed at promoting financial inclusion, women continue to face significant obstacles in securing loans from formal banking institutions. This research identifies key barriers such as lack of collateral, limited financial literacy, socio-cultural norms, and biased lending practices. By analyzing secondary data from government reports, bank records, and targeted surveys, the study highlights the current trends in women’s borrowing patterns and the impact of policies like the Pradhan Mantri Mudra Yojana on female entrepreneurs. The findings reveal persistent gender disparities in access to credit, particularly among rural women, and emphasize the need for targeted interventions to enhance financial inclusion and empower women economically.