cibil: Women turn out to be better borrowers: Data | India News
NEW DELHI: Women are proving to be better borrowers as they display greater credit awareness and better credit scores compared to their male counterparts, a study by TransUnion CIBIL has found. In 2021, 53% of the 54 million women borrowers had a CIBIL score in the main category (with credit scores of 731 to 770) and above, compared to 47% for men.
The default rate for female borrowers was pegged at 5.2% for all retail credit products, compared to 6.9% for their male counterparts.
Furthermore, the report pointed out that the number of female borrowers has been growing at a faster rate in recent years – 29% per year. They represent 29% of borrowers, compared to a quarter of borrowers in 2016.
Loan outstanding also increased by 20% compounded annually (CAGR) to Rs 12.4 lakh crore or 23% of total outstanding retail credit balances in 2021 from Rs 5 lakh crore or 21% in 2016.
Banks see women as a huge target segment as credit penetration, although doubling to 12% between 2016 and 2021, remains low.
The report also indicates that growth in the number of female borrowers has remained strong during the pandemic, with female borrowers showing stronger growth at 11% compared to 6% of male borrowers through 2021. Information from TransUnion CIBIL has also indicated the expansion of the female footprint. borrowers in semi-urban and rural areas, with a CAGR of 21% between 2016 and 2021 against a growth of 16% in metropolitan and urban areas.
The default rate for female borrowers was pegged at 5.2% for all retail credit products, compared to 6.9% for their male counterparts.
Furthermore, the report pointed out that the number of female borrowers has been growing at a faster rate in recent years – 29% per year. They represent 29% of borrowers, compared to a quarter of borrowers in 2016.
Loan outstanding also increased by 20% compounded annually (CAGR) to Rs 12.4 lakh crore or 23% of total outstanding retail credit balances in 2021 from Rs 5 lakh crore or 21% in 2016.
Banks see women as a huge target segment as credit penetration, although doubling to 12% between 2016 and 2021, remains low.
The report also indicates that growth in the number of female borrowers has remained strong during the pandemic, with female borrowers showing stronger growth at 11% compared to 6% of male borrowers through 2021. Information from TransUnion CIBIL has also indicated the expansion of the female footprint. borrowers in semi-urban and rural areas, with a CAGR of 21% between 2016 and 2021 against a growth of 16% in metropolitan and urban areas.