28% of retail borrowers are women; debt growth of 21% since 2014: Balance sheet
Indicating the growing indebtedness of women as well as their financial inclusion, 28 percent of retail borrowers are women whose reliance on external finance relative to men has increased by 21 percent since 2014, according to data from the sector.
According to data from the largest credit bureau Transunion Cibil released on Monday, there are now 47 million female borrowers in the retail credit market and over the past six years the share of female borrowers has increased to 28. % in September 2020, up 23% in September 2014, indicating the increasing inclusion of women in the credit market. This is an annual growth rate of 21 percent, while the same rate by male borrowers has increased by 16 percent over the same period, the report says.
In terms of the amount of loans sanctioned, female borrowers now account for Rs 15.1 lakh crore in retail loans, representing growth of 12% per year over the past six years. The report attributes the same to better access to economic opportunities leading to better financial inclusion of women.
Harshala Chandorkar, COO of Transunion Cibil, said the increased participation of women in the labor market, coupled with all government initiatives and policies aimed at improving access to economic opportunities for women, has driven this growth . She also said that factors such as lower stamp duties for female consumers when buying a home in some states, as well as lenders offering better terms and lower interest rates for them, have further catalyzed this.
Another main reason is that women are better at repaying, resulting in higher credit scores than their male counterparts, indicating a lower probability of default, making them better clients for banks and credit institutions. credit.
Data on credit enjoyed by women shows that 45 million new loan accounts were opened by female borrowers in the 12-month period ending September 2020, marking an annual growth of 17% over the six last years ending in September 2020. Compared to this, the number of new loan accounts opened by male borrowers has increased by 16 percent over the same period.
In the third quarter of 2020, there were over 47.5 million active female borrowers with at least one direct loan and / or credit card account. In 2014, that figure was only 14.9 million.
Personal loans and sustainable consumer loans are the most requested by female borrowers, with more than 29 million women applying for credit opportunities in 2020, indicating a 26% increase in annual growth over the years. last six years.
Considered from a product type, there is a marked preference for personal loans and consumer durable loans by women, with 38% of applications from women in 2020. Data from 2014, 2015 and 2016 show that home loans were the most popular for women. Up to 19% are also for home loans, indicating that they are increasingly holding land assets
There is also an increased awareness of credit, which is also evident from the fact that women now constitute 12% of self-monitored consumers, an increase from 10% in 2018.
Analysis of state-level data indicates that the largest number of self-monitoring consumers are from Maharashtra (18%), followed by Tamil Nadu (11%) and Karnataka (10%).