The percentage of working women has been increasing considerably in India. In addition, when it comes to taking a loan, women borrowers have outperformed men. The size of the borrowing amount is also comparatively high. This is because women are now becoming financially independent and also taking a charge for their future goals.
When women apply for a personal loan, the higher loan amount usually could indicate that it is a household with two incomes. Hence women are becoming an important breadwinner along with men in the family. Whereas, when it comes to the men applying for a personal loan, it applies that they could be the sole breadwinner in the family.
Various banking institutes offer loan schemes for women that have an interest rate lower than that for men. Many financial institutes offer different women entrepreneur loans for women planning to start their own venture. Apart from this, there are multiple government loan schemes for women that could be availed.
It was observed that in Bengaluru, women borrowed INR 37.9 lakhs; whereas the men borrowed INR 36.9 lakhs. In Chennai, women borrowed INR 34.8 lakhs; whereas the men borrowed INR 30.1 lakhs. As a matter of fact, this situation was slightly the other way round in Mumbai – wherein the men borrowed more (on an average INR 32.8 lakhs) than the women (on an average INR 29.7 lakhs).
This information determines that the loan taken by women is usually higher than men. Most women apply for loans alongside their partner to avail the benefit of the low-interest rate. Hence, in most situations, this indicates a household with a double income that is applying for a loan.
The information also showed that people in Delhi took the highest ticket sized loan (INR 5 crore), followed by people in Chennai (INR 2.2 crore), Bengaluru (INR 1.5 crore) and Mumbai (INR 1.8 crore). Consider the following table for better understanding:
|City||Highest Ticket Size Loan Taken||Average Ticket Size (Men)||Average Ticket Size (Women)|
|Delhi||INR 5 crore||INR 24.48 lakh||INR 27.98 lakh|
|Chennai||INR 2.2 crore||INR 30.10 lakh||NR 34.79 lakh|
|Bengaluru||INR 1.5 crore||INR 36.86 lakh||INR 37.85 lakh|
|Mumbai||INR 1.76 crore||INR 32.84 lakh||INR 29.71 lakh|
|Kolkata||INR 1.21 crore||INR 21.98 Lakh||NR 37.84 lakh|
It is also noteworthy that many business loans taken in most states are by women entrepreneurs. With respect to the risk profiles, some of the top borrowing states include Tamil Nadu and Kerala. Moreover, these two states have the lowest borrowing risk across the country and an average CIBIL score of 781 among women.
As a matter of fact, studies have shown that financial caution and the average CIBIL score among women usually increases with age. Millennial women (under the age of 35 years) generally have an average credit score of 773.
When it comes to buying vehicles, women loan applicants tend to steer away from the big-ticket car purchase. Usually, men borrow up to INR 49.9 lakh for a vehicle; whereas the highest female car loan ticket size was INR 12.9 lakh. However, the average car loan size taken by women is relatively higher (INR 5.5 lakh) than men (INR 5.3 lakh).
The Bottom Line
There are many financial institutes in India that have different schemes of loan for women. Women seeking personal loans can take a look at Bajaj Finserv Personal Loan from Finserv MARKETS. They offer various benefits like low EMI, minimal documentation, quick disbursement and much more.
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