Urban Money Report Highlights Women's Home Loan Access Gap

By: Women Entrepreneurs Review Team | Thursday, 11 June 2026

Credit barriers continue to restrict women’s access to housing finance and property ownership in India, even as progress in education, employment, and financial inclusion accelerates. A recent Urban Money report, titled “Women and Housing Finance in India: Progress, Barriers and the Opportunity”, highlighted a widening disconnect between women’s financial involvement that is growing, and how easily they can actually get a home loan. 

Homeownership is often seen as a base layer of financial security, wealth building and longer term steadiness. But the report says that within the lending system there are real structural holdbacks. In 2025, women made up just 11% of the total approved home loans in India, and that number basically signals a gender gap in housing finance access.  Also, the average amount disbursed as home loans to women was ₹23 lakh, while men received ₹29 lakh . This gap shows the weaker borrowing capacity and more constrained credit profiles.

The report identifies multiple systemic issues that contribute to this gap, including inconsistent income patterns, limited credit histories, and lower credit scores among women borrowers. These factors collectively reduce eligibility and restrict loan size approvals.

Key Highlights

• Women face lower access to formal housing finance systems
• Loan approvals show persistent disparity in sanctioned amounts
• Credit history gaps reduce overall borrowing eligibility strength

Kanika Shori, COO and Founder of Square Yards, stated that while women are increasingly active in education, entrepreneurship, and formal financial products, this progress has not fully translated into property ownership outcomes. She notes, “Today, more women attain higher education, join the workforce, launch businesses and engage with formal financial instruments such as mutual funds, insurance and retirement plans. However, this progress has not fully translated into access to housing finance and property ownership. Numbers indicate that women’s share in overall retail credit is substantial, with strong representation in segments such as gold and education in recent years, but the share in home loan borrowers remains well below parity. This anomaly highlights structural and behavioural barriers, including persistent income gaps, limited continuous employment histories, thinner credit files and lower credit scores, that disproportionately affect women’s borrowing capacity.”

The report also highlights that many women continue to rely on co-applicants or family members while applying for home loans.

Workforce participation remains another critical factor influencing this gap. Although women’s educational attainment has improved significantly, their representation in corporate employment stands at only 28% in 2025. Participation further declines in senior and managerial positions, limiting income growth and long-term financial independence. This directly affects creditworthiness and reduces access to higher-value home loans.

Some government initiatives like reduced stamp duty for women in a few select states, lower interest rates and certain tax incentives are helping nudge people toward property ownership. However, the report suggests that these alone will not suffice without structural change. Independent credit-building strategies, higher financial literacy among women, and an increased understanding of borrowing rights are crucial elements of overcoming this problem.

The findings emphasize that achieving equitable access to housing finance will require coordinated policy support, inclusive lending practices, and sustained improvements in women’s financial empowerment ecosystem.