In India, women have long faced obstacles in accessing financial services, but recent trends suggest a changing landscape. A recent Easiloan survey reveals a remarkable increase in women embracing technology and actively engaging in the country’s financial domain.
Looking ahead, a higher percentage of women (59 percent) express a desire to navigate their loan processes online compared to men (49 percent). Encouragingly, both women (77 percent) and men (79 percent) exhibit almost identical levels of acceptance regarding the continued integration of digital loan services, propelled by the internet and data revolution.
Moreover, a large majority of women (73 percent) find online loans more convenient than traditional offline avenues, a similar trend observed by men (74 percent), the survey highlighted.
Further analysis reveals that women borrowers (31 percent) are essentially on par with men (32 percent) in using online resources such as mobile apps to access credit.
In line with the shift to digital platforms, 70-75 percent of female borrowers found online lending more convenient than traditional offline methods.
“Such platforms offer instant advance information to the borrowers who benefit to make the right choice. Sharing of information through digital platforms including WhatsApp has also worked very well. Almost 45 percent of female borrowers receive loan notifications through the app,” Pramod Kathuria said. . , Founder and CEO, Easiloan.
According to a recent study by HomeCredit India, 59 percent of women borrowers prefer an online loan journey compared to the existing traditional methods. The average portfolio size of loans availed by female customers is approximately 45-50 thousand rupees.
“Women find the online loan journey more user-friendly and time-saving compared to the traditional route. The ability to apply for loans from the comfort of their own homes, without the need for extensive paperwork or multiple visits to a bank, has made online loans a popular choice among women in India ,” said Rahul Mehrotra, MD & CEO, Religare Housing Development Finance Corporation Ltd (RHDFCL).
The convenience of instant approvals and quick disbursement of funds further fueled this preference for the online loan journey.
Women Borrowers have a Higher Ticket Size than Men
Easiloan’s survey further revealed that in cases where women are borrowers or co-borrowers, it often indicates a dual income household, resulting in higher loan amounts. Conversely, when men are the only applicants, it is more likely to be a single-income household, leading to lower loan amounts. This trend of women improving household purchasing power is evident across various cities.
In Delhi, the average home loan size for women borrowers was Rs 28 lakh, compared to Rs 24.5 lakh for male borrowers. In Bengaluru, women borrowed Rs 37.9 lakh on average, surpassing men’s average of Rs 36.9 lakh. Similarly, in Chennai, women borrowed Rs 34.8 lakh compared to men’s Rs 30.1 lakh. However, the situation was different in Mumbai, where men borrowed more for home loans, averaging Rs 32.8 lakh compared to women’s Rs 29.7 lakh.
Moreover, when it comes to car loans, women usually secure larger amounts, averaging Rs 5.5 lakh, compared to Rs 5.3 lakh when men are the main applicants.
Indian women are more responsible borrowers
According to a study by Fibe, women are more responsible credit borrowers as they are 10 percent more likely to repay the EMI on time compared to male borrowers.
This reflects their conscious approach to debt and prudent decision-making habits, underlining their commitment to good financial management.
The study further highlighted the responsible borrowing behavior among women by indicating that the age for availing a first loan has increased over the last five years for NTC clients. The average age to take out a first loan increased from 26 years in 2019 to 31 years in 2023.
Credit demand among New-to-Credit (NTC) women customers has more than doubled over the past five years. The survey indicates this growth from 18 percent in 2019 to 40 percent in 2023. In contrast, there was a 22 percent decline among male NTC customers with demand dropping from 82 percent in 2019 to 60 percent in 2023.
Of all women borrowers, NTC clients account for the most at 32 percent. Women who own a credit card and regularly use loans represent 13 percent, while women who do not own a credit card, but choose other loans, represent 18 percent. About 22 percent of women account for those who have a limited credit history.
Young age goes for digital loans
The highest volume of female customers is within the age group of 25-30, comprising approximately 30 percent of the total, followed by the 31-35 age group at 21 percent.
However, there is a growing trend towards digital environments across all age groups of female customers, including significant volumes of almost 20 percent in the 20-25 age group and 15 percent in the 36-40 age group.
Moreover, according to a recent report by TransUnion CIBIL, the age group of women in the 31-45 age group contributes 44 percent of the total women borrowers in India. Similarly, age slabs of 18-30 and above 45 years constitute 37 percent and 19 percent respectively.