The number of women borrowers is on the rise with steady growth in credit demand, according to two separate studies by TransUnion CIBIL and CRIF HighMark.
Women are emerging as a strong class of borrowers, with better credit profile and lower delinquency rates, said an analysis by TransUnion CIBIL which found that there is strong credit uptake by women in both urban and rural parts of the country.
It also revealed that the number of women borrowers in the country has increased at a compound annual growth rate (CAGR) of 19 per cent in the last five years, compared to a CAGR growth of 14 per cent for male borrowers during the same period. In 2021 alone, women borrowers grew at 11 per cent compared to the 6 per cent growth rate of male borrowers.
Credit penetration
The share of women borrowers has increased to 29 per cent in 2021 against 25 per cent in 2016.
Further, credit penetration for women as a percentage of borrowers to the total adult population has improved to 12 per cent in 2021 from 6 per cent in 2016.
“Increasing participation of women in India’s credit market bodes well for macroeconomic indicators on financial inclusion and social development while strengthening pathways to achieving our economy’s ₹5 trillion growth objective,” noted Harshala Chandorkar, Chief Operating Officer, TransUnion CIBIL.
However, average loan size came down marginally to ₹1,45,600 in 2021 from ₹1,48,700 in 2016.
Gold loan, consumer durable loan and personal loan were the top three products availed by women borrowers in 2021.
“In terms of total outstanding retail credit balances, the share of women borrowers is 23 per cent,” TransUnion CIBIL said, adding that growth in women borrowers has remained strong despite the aftermath of the Covid-19 pandemic.
Better score
Women borrowers also have a better score distribution. As of 2021, 53 per cent of women borrowers had a score of prime (731 to 770) and above compared to 47 per cent for male borrowers.
“The 90+ days-past-due (DPD) consumer-level delinquency rate for women borrowers stands at 5.2 per cent across retail credit products compared to that of their male counterparts at 6.9 per cent, indicating that women tend to be more disciplined borrowers,” TransUnion CIBIL added.
New-to-credit originations
Indian women are also availing more credit in the form of home loans and business loans than personal loans and auto loans, said a study by CRIF HighMark.
Women borrowers availing auto loans, business loans, home loans and personal loans has increased by 2 per cent, 1 per cent, 2 per cent, 1 per cent, respectively, over the last one year, it said.
The share of women borrowers in new-to-credit originations (by number of loans) increased to 21.2 per cent in 2021 from 19.8 per cent in 2019, the study added.