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NEW DELHI: Women are proving to be better borrowers since they display higher credit consciousness and better credit scores as compared to their male counterparts, a study by TransUnion CIBIL revealed. As of 2021, 53% of the 54 million women borrowers had a CIBIL score in the prime category (with credit scores of 731-770) and above compared to 47% for men.
The delinquency rate for women borrowers was pegged at 5.2% across retail credit products, compared to 6.9% for their male counterparts.
Besides, the report pointed out that women borrowers were increasing at a faster pace in recent years — 29% annually. They accounted for 29% of the borrowers, compared with a quarter of the borrowers in 2016.
The outstanding loan amount also increased at 20% compounded annually (CAGR) to Rs 12.4 lakh crore which is 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, despite doubling to 12% between 2016 and 2021, remained low.
The report also said that the growth in women borrowers has remained strong during the pandemic, with women borrowers showing a stronger growth at 11% compared to the 6% of male borrowers through 2021. TransUnion CIBIL insights also indicated the expansion in the footprint of women borrowers in the semi-urban and rural locations, with a CAGR of 21% between 2016 and 2021 as compared to 16% growth in metro and urban regions.
The delinquency rate for women borrowers was pegged at 5.2% across retail credit products, compared to 6.9% for their male counterparts.
Besides, the report pointed out that women borrowers were increasing at a faster pace in recent years — 29% annually. They accounted for 29% of the borrowers, compared with a quarter of the borrowers in 2016.
The outstanding loan amount also increased at 20% compounded annually (CAGR) to Rs 12.4 lakh crore which is 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, despite doubling to 12% between 2016 and 2021, remained low.
The report also said that the growth in women borrowers has remained strong during the pandemic, with women borrowers showing a stronger growth at 11% compared to the 6% of male borrowers through 2021. TransUnion CIBIL insights also indicated the expansion in the footprint of women borrowers in the semi-urban and rural locations, with a CAGR of 21% between 2016 and 2021 as compared to 16% growth in metro and urban regions.
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