In India, women have long encountered obstacles in accessing financial services, but recent trends suggest a shifting landscape. A recent survey by Easiloan reveal a notable uptick in women embracing technology and actively engaging in the country’s financial domain.
Looking ahead, a higher percentage of women (59 per cent) express a desire to navigate their loan processes online compared to men (49 per cent). Encouragingly, both women (77 per cent) and men (79 per cent) exhibit nearly identical levels of acceptance regarding the ongoing integration of digital lending services, propelled by the internet and data revolution.
Moreover, a substantial majority of women (73 per cent) find online loans more convenient than traditional offline avenues, a similar trend observed by men (74 per cent), highlighted the survey.
Further analysis reveals that women borrowers (31 percent) are essentially on par with men (32 per cent) in leveraging online mediums such as mobile apps to access credit.
Aligned with the shift to digital platforms, 70-75 per cent of female borrowers found online lending to be more convenient than traditional offline methods.
“Such platforms offer instant preliminary information to the borrowers who are benefitted to make the right choice. Information sharing through digital platforms including WhatsApp has worked very well too. Almost 45 per cent of female borrowers receive loan notifications through the app,” said Pramod Kathuria, Founder and CEO, Easiloan.
According to a recent study by HomeCredit India, 59 per cent of women borrowers prefer online loan journey as compared with the existing traditional methods. The average ticket size of loans availed by female customers is approximately Rs 45 – 50 thousand.
“Women are finding 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 has further fueled this preference for the online loan journey.
Women Borrowers have Higher Ticket Size than Men
The survey by Easiloan further revealed that in cases where women are borrowers or co-borrowers, it often indicates a double-income household, resulting in higher loan amounts. Conversely, when men are the sole applicants, there’s a greaterlikelihood of it being a single-income household, leading to lower loan amounts. This trend of women enhancing 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, exceeding 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 typically secure larger amounts, averaging Rs 5.5 lakh, compared to Rs 5.3 lakh when men are the primary applicants.
Indian women are more responsible borrowers
According to a study by Fibe, women are more responsible credit borrowers as they are 10 per cent more likely to repay the EMI on time compared to male borrowers.
This reflects their conscientious approach to debt and prudent decision-making habits, underscoring their commitment to sound financial management.
The study further highlighted the responsible borrowing behaviour among women indicating that the age for availing a first loan has gone up over the last five years for NTC customers. The average age for taking a first loan has increased from 26 years in 2019 to 31 years in 2023.
The credit demand among New-to-credit (NTC) women customers has more than doubled over the last five years. The survey indicates this increase from 18 per cent in 2019 to 40 per cent in 2023. In contrast, there was a 22 per cent decline among male NTC customers with the demand going down from 82 per cent in 2019 to 60 per cent in 2023.
Of all the women borrowers, NTC customers make up for the largest share at 32 per cent. Women who own a credit card and regularly avail loans represent 13 per cent whereas women who do not own a credit card but opt for other loans represent 18 per cent. About 22 per cent women account for those who have limited credit history.
Young age bracket going for digital loans
The highest volume of women customers falls within the age bracket of 25-30, comprising approximately 30 per cent of the total, followed by the 31-35 age group at 21 per cent.
However, there is a growing trend towards digital mediums across all age groups of women customers, including significant volumes of nearly 20 per cent in the 20-25 age group and 15 per cent in the 36-40 age group.
Further to this, according to a recent report by TransUnion CIBIL, the age group of women in 31-45 years of age contribute 44 per cent of the total women loan borrowers in India. Similarly, age slabs of 18-30 and more than 45 years of age constitutes 37 per cent and 19 per cent respectively.
