TransUnion CIBIL Insights: Women Borrowers form 28% of India’s Retail Credit Consumer Base

Financial Inclusion of women on the rise with 47 million active women borrowers, increasing by a compound annual growth rate (CAGR) of ~21% over the last six years

Latest insights from TransUnion CIBIL indicate sustained growth in the participation of women borrowers in India’s retail credit market, which now includes more than 47 million active women borrowers. Over the last six years, the share of women borrowers grew to ~28% in Sep-20, up from ~23% in Sep-14, indicating increasing inclusion of women in India’s credit market. This represents a CAGR of ~21%. Male borrowers have increased at a CAGR of ~16% during the same period. In terms of sanctioned loan amount, women borrowers account for INR 15.1 lakh crores of retail loans, which has also grown at 12% CAGR over the last six years.

Improved access to economic opportunities have catalyzed financial inclusion of women

Speaking on these findings, the Chief Operating Officer of TransUnion CIBIL, Ms. Harshala Chandorkar, said: “Increased participation of women in the labour force, coupled with progressive government initiatives and policies on improving access to economic opportunities for women, has driven the growth of women borrowers in India’s retail credit market. Factors like lower stamp duty for women consumers on home purchase in some states along with lenders offering better terms and conditions and lower rate of interest for women borrowers, have further catalyzed this growth. Also the fact that women have a higher average CIBIL score than that of men indicates that women have a better credit history and therefore lesser probability of default which makes them better customers for banks and credit institutions. Improved and easier access to economic opportunities has catalyzed financial inclusion of women in India”

Insights on credit availed by women consumers show that ~45 million new loan accounts were opened by women borrowers during the 12-month period of Oct-19 to Sept-20, marking a 17% CAGR growth over the last six years (i.e. compared to credit availed in period of Oct-13 to Sep-14). The number of new loan accounts opened by male borrowers has increased at 16% CAGR during the same period. At the end of Q3 2020, there were more than 47 million active women borrowers (with at least 1 live loan and/or credit card account).