New research conducted by fintech platform Fibe has revealed some interesting insights on the credit habits of women borrowers. According to the research, women are 10 per cent more likely than men to make on-time EMI repayments, indicating that they are more responsible credit borrowers.
The study finds that this pattern highlights women’s careful handling of debt and their mindful decision-making practices, demonstrating their commitment to responsible money management.
The study was conducted with the purpose of understanding changing consumer habits and to ensure that products and services are offered to satisfy the wide range of needs of today’s consumers. The increase in demand for loans by women, combined with their stellar repayment history, demonstrates their resolve to achieve their goals, and manage their financial independence efficiently.
In addition, the survey found that over the last five years, the credit demand from female new-to-credit (NTC) customers has increased significantly (literally doubling). This survey highlights the rise from 18 per cent in 2019 to 40 per cent in 2023. On the other hand, there has been a 22 per cent decrease in demand among male NTC consumers between 2019 and 2023, from 82 per cent in 2019 to 60 per cent in 2023.
The study also revealed some fascinating trends about the credit profiles of women borrowers. NTC consumers make up the largest segment of all female borrowers, accounting for 32 per cent of the total. Among the women surveyed, 13 per cent had credit cards and took out loans frequently, while 18 per cent did not have credit cards but instead used other loan options. Furthermore, 22 per cent of women are classified as having a limited credit history. This tendency emphasises the growing expansion of female credit borrowers in the nation.
The study also highlighted women’s responsible borrowing practices, noting that in the last five years, there has been a rise in the age at which NTC customers take out their first loan. The average age has increased from 26 years in 2019 to 31 years in 2023.
Image source: Tata Capital, LIC