credit: women are increasingly credit conscious and also default less than men: credit bureaus
Female borrowers in the 36-50 age group have increased by 33% since December 2017. While older women borrow at an even faster rate, female borrowers in the over 50 age group have increased. 41%, according to a study by the credit bureau Crif Highmark.
As the number of female borrowers has increased, awareness and awareness of credit among female borrowers has also improved. Self-monitoring – regularly assessing one’s credit rating and arriving at a credit decision by female borrowers increased by 62% between 2018 and 2019, according to a report by credit bureau Transunion Cibil. That’s twice the growth rate of self-monitored male consumers 30%, according to the report).
According to Transunion Cibil, 56% of these self-monitoring consumers are from the states of Maharashtra, Tamil Nadu, Karnataka, Telangana and Delhi. Although Andhra Pradesh only contributes 5% of this segment, 44% of them get a loan or credit card within three months of checking their credit score. Interestingly, 64% of female consumers who self-monitor are millennials in their 20s.
The most preferred loans are unsecured loans, consumer loans and personal loans, according to Transunion Cibil. “Female consumers can be viewed more positively due to better credit profiles than their male counterparts, which will also translate into better access to credit and faster loan approvals,” says Sujata Ahlawat, vice president and responsible for direct interaction with consumers, TransUnion Cibil. .
For both home and auto loans, delinquency among female borrowers at 0.63% and 0.96% is 15 basis points and 10 basis points better, respectively, compared to delinquency among male borrowers, note the Crif Highmark report. But for personal loans, delinquency is almost equal for men and women with a marginal difference of only one basis point, where women are considered to have a higher risk of default at 0.70%, a- he declared.