Share of women borrowers rising each year

Women are no more shying away from availing credit, which usually used to be a man’s domain. The number of women borrowers are growing and it is good for the financial institutions, as the delinquencies are lesser among women.

The share of women borrowers to total borrowers stood at 26 per cent as on

September 2019, up from 21 per cent in September 2013, as per the data from Transunion Cibil. According to the credit bureau, there are 30 million women borrowers and the number has grown by a CAGR of 26 per cent in the last six years against a CAGR of 21 per cent among men.

As many as 6.3 million accounts were opened by women borrowers in Q3 2019 against 1.1 million accounts in Q3 2013—six times growth in six years. Similarly, there has been a six fold rise in the number of women making loan enquiries in these six years.

CRIF Highmark too finds that there has been a 36 per cent spike in the number of women borrowers since December 2017. Women above the age of 35 years are becoming more active in availing credit. Credit growth among women in the age group of 36-50 years has grown by 33 per cent since December 2017. Among women above the age of 50 years, this growth has been 41 per cent.

Harshala Chandorkar, chief operating officer of TransUnion Cibil, said, “The significant increase in the number of women who are seeking credit products is a promising indicator of the evolution of India’s credit market which has enabled increased economic opportunities for women borrowers. Financial institutions must unlock the significant potential that lies in customising product constructs for women borrowers to further drive business growth.”

CRIF data shows that women are availing of credit more for home loan as compared to personal and auto loans. Women have 29 per cent share in the Rs 20.6 lakh crore market of home loans, while they have 15 per cent share in auto loans and personal loans.

Women are also more responsible when it comes to repaying their loans. In home loans the delinquency of women borrowers is 0.63 per cent, 15 basis points better than their male counterparts.