Women avail more loans to spend on education than men: Report

Who do you think would be more inclined to borrow to fund their higher studies, men or women? Well, the answer is women. According to a survey done by ZestMoney, a consumer lending fintech company, on an average, over 20 percent of loans taken by women were for education, whereas in comparison, the same percentage for men was just 6 percent.

The research from the survey report also found that average loan amount for women is 35 percent higher than men. In 2019, average amount of EMI financing taken by women is around Rs 20,000, whereas for men the amount is Rs 15,000.

Average loans taken by Men and Women

Source: ZestMoney

This goes against the popular perception would be that women spend more on vanity, and men spend cautiously on necessities.

Financing through EMIs has been on the rise among Indians. Another survey done by ZestMoney last month found that EMI financing grew 1,000 percent over the past year in tier 3 cities. This growth has bypassed the combined growth of tier I and II cities.

The study also revealed that in the financial year 2018-19, 46 per cent of EMI financing was availed by borrowers from Tier-III cities, while 54% per cent was from customers in Tier I & II cities. This showcases the growing depth of fin-tech financing in India.

In addition to that, millennials are taking loans to travel within India or outside India. This rising trend can be seen even in tier II & III cities.