Indian women have outpaced their male counterparts when it comes to taking loans from formal sources like banks and NBFCs. A study by credit bureauTransUnionCIBIL shows that India has witnessed a 48% growth in successful credit applications among women borrowers between 2015 and 2018. In comparison, the growth among male borrowers is slower at 35%.
The data also reveals that 8.6 million new –to-credit women borrowers are opening new loan accounts per year, and 66% of these women are from five states: Tamil Nadu, Kerala, Andhra Pradesh, Maharashtra and Karnataka.
“The increase in credit demand and uptake by women is an opportunity for the credit industry to customize products and services that can cater better to the financial requirements of women borrowers. “ said Harshala Chandorkar, COO, TransUnion CIBIL. “ Women oriented financial inclusion policies of the government have also helped catalyze this growth.
Transunion Cibil expects further growth in credit demand by women borrowers in future based on multiple factors such as rise in education of women, increasing consumption of consumer durables in tier I and tier II markets and an increase in the number of working women.
The study also notes that a high number of business loans originate from states which have the most number of female MSME owners. In terms of risk profiles among the top borrowing states, Tamil Nadu and Kerala have the lowest borrowing risk in the country with an average CIBIL Score among women of 781.
Interestingly, data captured shows that financial prudence and the average CIBIL Score among all women increases with age. Millennial women (under 35 years) had an average credit score of 773, while women between the age group 35 – 45 had a score of 776, and those above the age of 45 years had the highest average score of 785. The average CIBIL Score among all Indian women consumers is 770+.
A good CIBIL Score can help consumers gain access to better credit offers faster, and lenders typically consider a credit score above 750 as an ideal score.