Female borrowers growing faster than men

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    According to a recent report by TransUnion CIBIL, the number of Indian women consumers gaining access to India’s credit market has been rising rapidly. The share of women borrowers to total borrowers stood at 26% as on September 2019, up from 21% in September 2013


    Key Takeaways on Female Participation in India’s Credit Sector

    With 30 million women borrowers gaining access to credit products, it is surely an encouraging sign for the sector’s business growth. Here are some more key takeaways from female participation in India’s credit sector:


    High Credit-Consciousness among Female Borrowers

    The recent TransUnion CIBIL report indicates that women borrowers are at lower credit risk in comparison to their male counterparts in the Indian loan scenario. Lenders too prefer such credit-conscious and responsible borrowers who shall abide by the terms and conditions of the loan and repay the entire loan amount within the stipulated time. Given the better CIBIL scores of women borrowers, gaining access to loans especially secured loans, and their approval also becomes easier for them.

    Indian women are now capitalizing on this opportunity and approaching banks and financial institutions for loans based on their loan requirements. Women are now keener and more confident in handling big-ticket loans such as home loans, auto loans, and business loans.


    Growing Base of Self-Monitoring Female Consumers

    More and more women are learning about how they can use loans and credit cards to make their dreams come true According to a recent study by TransUnion CIBIL in the credit landscape, the number of self-monitoring Indian women, who check their CIBIL Score and Report, jumped by 62 percent between February 2018 and December 2019


    Impressive Credit Scores of Millennial Female Borrowers

    Millennial women have become adept at making smart financial decisions and opting for loans to put their financial plans into action. Besides, millennial women are willing to financially support their partners by opting for joint credit opportunities such as loans, given their above par CIBIL scores.

    About 64 percent of self-monitoring female consumers in India today are millennials and the average CIBIL score of these women stands at 735, higher than the CIBIL score of a self-monitoring millennial male consumer pegged at 726.


    Credit Picture based on Geography

    Women borrowers belonging to the southern and western regions of India have been regarded as more credit savvy as compared to their northern counterparts. About 56 percent of the self-monitoring female consumers belong to the states of Tamil Nadu, Karnataka, Telangana, Maharashtra, and Delhi. Amongst these, Telangana, Maharashtra, Karnataka, and Tamil Nadu account for 38.6 percent of the total personal loans availed by women.


    Conclusion: As per the TransUnion CIBIL report, 45 percent of women consumers have improved their credit scores, within 6 months of verifying their CIBIL report. This demonstrates their credit-consciousness and their capacity to avail credit when they need it the most. What’s more is that 52 percent of female consumers enquired about at least one type of loan or credit card, and 35 percent of them went on to activate a loan account or acquire a credit card.

    Given such diligent credit-consciousness amongst women borrowers, the Indian government has taken several steps through banks and financial institutions to strengthen and augment women’s capacity to retrieve affordable loans at lower interest rates. Lenders too, such as the HDB Financial Services are equally enthusiastic about creating loans tailor-made for women consumers.

    You can now apply for a variety of loans ranging from a home loan and personal loan to a business and two-wheeler loan through HDB Financial services online or by visiting the nearest physical branch. The application process is quite quick and convenient with minimal documentation.

     

    Article Credit Links:

    https://newsroom.transunioncibil.com/credit-penetration-and-participation-of-women-consumers-has-rapidly-increased-in-indias-credit-market/

    https://economictimes.indiatimes.com/news/economy/indicators/women-more-credit-conscious-than-men-report/articleshow/81389164.cms?from=mdr

    https://www.financialexpress.com/money/credit-penetration-participation-of-women-consumers-increasing-rapidly/1891576/