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Credit penetration, participation of women consumers increasing rapidly

The share of women borrowers to total borrowers stood at about 26 per cent as on September 2019, up from about 21 per cent in September 2013.

TransUnion CIBIL’s latest insights, Credit penetration, participation of women consumers, women borrowers, CIBIL Score, self-monitoring women consumers, millennial women consumers
Gaining access to credit products, awareness and credit consciousness amongst women borrowers have also improved.

According to TransUnion CIBIL’s latest insights, credit penetration and participation of women consumers has rapidly increased in India’s credit market, with the share of women borrowers to total borrowers stood at about 26 per cent as on September 2019, up from about 21 per cent in September 2013.

As the number of women borrowers in India’s credit sector has grown, with 30 million female borrowers, gaining access to credit products, awareness and credit consciousness amongst these women borrowers have also improved with self-monitoring women consumers growing by 62 per cent between 2018 and 2019. This is twice the 30 per cent growth rate of self-monitoring male consumers, reveals the insights.

Speaking on these findings the Chief Operating Officer of TransUnion CIBIL, Harshala Chandorkar said, “The significant increase in the number of women who are seeking credit products is a promising indicator of the evolution of India’s credit market which has enabled increased economic opportunities for women borrowers. Financial institutions must unlock the significant potential that lies in customising product constructs for women borrowers to further drive business growth and enable greater customer experience for women consumers.”

TransUnion CIBIL’s latest insights also revealed that 56 per cent of the self-monitoring women consumers are from the states of Maharashtra, Tamil Nadu, Karnataka, Telangana, and Delhi.

While Andhra Pradesh only contributes to 5 per cent to this segment, 44 per cent of them go on to avail a loan or credit card within three months of checking their CIBIL Score and Report, which shows that they are credit-conscious and aware of the role of their CIBIL Report in getting access to credit.

With the average CIBIL Score is at 734, self-monitoring women consumers have a higher score than the average self-monitoring male’s CIBIL Score of 726. Interestingly, self-monitoring, millennial women consumers have an even higher average CIBIL Score of 735, indicating that 64 per cent of self-monitoring women consumers are millennials.

“In the Indian credit and loan landscape, lenders are looking to onboard credit-conscious consumers who will comply with the loan agreement and will repay the amount in full on time. A consumer’s CIBIL Score and Report is a reflection of this credit-consciousness,” says Sujata Ahlawat, VP and Head of Direct-to-Consumer Interactive, TransUnion CIBIL.

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