Women less risky to lend than men: Report

Women in India are more trustworthy when it comes to lending by banks or NBFCs as they have proved to be more diligent in repayments, shows data from TransUnion, a credit data firm. The number of loans to women have also grown at a faster clip in the past five years reversing years of stagnation.

Women borrowers in India have increased at a compound annual growth rate (CAGR) of 15% over the last five years compared to a CAGR growth of 11% for male borrowers. The share of women borrowers has increased from 25% in 2017 to 28% in 2022 according to TransUnion Cibil.

Lenders are seeing more potential in women to push financial inclusion in women according to the credit bureay. Credit access for women (percentage of borrowers to total adult population) has grown from 7% in 2017 to 14% in 2022. With about 63 million credit active women borrowers as of December 2022, the growth rate of women borrowers at 16% has been more rapid than men at 13% during the year


“The marked evolution of women borrowers as active participants in India’s credit market bodes well for the government’s financial inclusion mandates" said Harshala Chandorkar, chief operating officer at Transunion Cibil.

The credit bureau's analysis shows that women borrowers have a better risk profile and hence more trustworthy and carry lower risk compared to male borrowers. In 2022, 57% of women borrowers had a score of prime ( credit scrore of nearly 700 and less risky) and above compared to 51% of male.

The credit bureau's study indicates that as more women borrowers enter the workforce and become financially independent, they are seeking credit opportunities to fulfil their life goals and aspirations.

The number of women seeking business loans have more than tripled in the last five years (CY 2017 to CY 2022) which is a reflection of the growth of women-led start-ups in India. During this period the share of women in over-all business loan portfolio has increased by twelve percentage points (32% in CY 2022 versus 20% in CY 2017). Increase in the share of women borrowers is also observed in the home loan segment, with 6% growth in the last 5 years.

The increase in number of women monitoring their CIBIL Score and report reflects improved financial awareness and credit consciousness. It also demonstrates that women are cognizant that credit discipline matters, and are taking proactive measures to continually improve their credit profile, “said Sujata Ahlawat senior vice president and heaf- DTC Interactive at Transunion Cibil.