Demand for Personal, Consumer and Two Wheeler Loans by Women on the Rise: TransUnion CIBIL Study
- Around 8.6 million new-to-credit women open accounts annually (2015-18)
- 48% growth in credit applications among women borrowers (between 2015 and 2018)
- Loans against gold, business loans and consumer loans are the leading categories for women in 2018
- 66% of women consumer loans are from five states — Tamil Nadu, Kerala, Andhra Pradesh, Maharashtra and Karnataka
- Women consumers in Tamil Nadu and Kerala own the highest share of loans at 27% and 13% respectively
March 7, 2019: TransUnion CIBIL data insights show that India has witnessed a 48% growth in successful credit applications among women borrowers between 2015 and 2018. In comparison, the growth among male consumers is slower at 35%, despite men being a much larger consumer base. 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. It is encouraging to observe that a high number of business loans originate from states which have the most number of female MSME owners. Women oriented financial inclusion policies of the government have also helped catalyze this growth. We expect 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,” said Harshala Chandorkar, COO, TransUnion CIBIL.
In terms of risk profiles in the aforementioned 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.
Speaking about the growth in numbers, Sujata Ahlawat, VP and Head - Direct to Consumer interactive, TransUnion CIBIL, said: “It is encouraging to see more and more women start their loan journey which is leading to a rise in credit awareness as well. We have already seen about 38% of women borrowers monitor their CIBIL score regularly which implies that credit discipline is becoming a priority for them. Good credit behavior is also rewarded by lenders who are playing a vital role in bringing more and more women into the credit landscape by offering preferential interest rates for them. I would like to encourage all women to check and monitor their credit score regularly to ensure that they have access to credit whenever they need it.”
The study also offers an interesting insight into the various types of loans that women have taken over the last four years. Gold loans (or loans against gold) still lead at 56.4 million accounts, though the demand has fallen by 13% in 2018, followed by business loans. However, women’s demands for consumer loans, personal loans and two wheeler loans have been increasing year-on-year — growing by 31%, 19% and 14% respectively between 2017 and 18.
About TransUnion CIBIL
TransUnion CIBIL is India’s leading credit information company and maintains one of the largest repositories of credit information globally. We have over 3000 members–including all leading banks, financial institutions, non-banking financial companies and housing finance companies–and maintain more than 1000 million credit records of individuals and businesses.
Our mission is to create information solutions that enable businesses to grow and give consumers faster, cheaper access to credit and other services. We create value for our members by helping them manage risk and devise appropriate lending strategies to reduce costs and increase portfolio profitability. With comprehensive, reliable information on consumer and commercial borrowers, they are able to make sound credit decisions about individuals and businesses. Through the power of information, TransUnion CIBIL is working to support our members drive credit penetration and financial inclusion for building a stronger economy.
We call this Information for Good. For more information visit: www.transunioncibil.com