Better Credit Profile, Low Delinquency Rates: How Women Borrowers In India Continue To Rise

Image Credits: The Indian Express 

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Better Credit Profile, Low Delinquency Rates: How Women Borrowers In India Continue To Rise

A report made by TransUnion CIBIL analysed credit profiles of men and women borrowers in India from both rural and urban areas. The number of female borrowers has seen a rise of 19% in the last five years.

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TransUnion CIBIL published a report stating that women borrowers in India are on the rise due to their good credit profiles and low delinquency rates. 53% of women borrowers in the country had a score of prime and above (731 to 770) compared to the men in 2021. The previous year saw an increase in women borrowers by 29%, more than the 21% in 2016.

The Credit Information Bureau (India) Limited (CIBIL) is a credit information company that is authorised by the Reserve Bank of India (RBI). The CIBIL score holds immense importance in loan applications, as close to 90% of them are sanctioned depending on the credit score. According to the report, women borrowers grew by 19% in the country, with an 11% rise alone in 2021.

Women Borrowers Prove Their Mettle

The Hindu Business Line reported the study's analysis, which laid down points about women borrowers. Compared to men borrowers in both rural and urban areas, women are proving to be better at the job with a stellar credit profile and low delinquency rate. Financial Inclusion is cited as one of the primary reasons behind rising participation in this ambit.

TransUnion CIBIL's CEO, Harshala Chandorkar, told the news publication, "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." Further, Chandorkar added that there had been consistent growth, despite COVID-19 wreaking havoc on the country's economic and financial fabric. The increase was also seen in availing of credit in home and business loans. Compared with availing of personal and auto loans, they have increased by 2% and 1%.

Another reason for the rise in women borrowers is the low delinquency rates. According to Investopedia, 'credit card delinquency' refers to when the concerned cardholder falls back on their payments. "The 90+ days-past-due (DPD) consumer-level delinquency for women borrowers stands at 5.2% across retail credit products, compared to that of their male counterparts at 6.9%. This indicates that women tend to be more disciplined borrowers," adds the report.

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Writer : Akanksha Saxena
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Editor : Ankita Singh
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