Of course, we know that women today do not like to be financially dependent. This is where incentives play an important role.
The higher percentage of borrowers out of women is biased towards working women, as per a recent survey conducted. Millennials women these days are borrowing more, specifically to sponsor their lifestyles, and also heading the bunch of aspirants. We have been overseeing more and more women, including millennials, going for loans. A significant hike ranging between 15-18% has been witnessed in the last 2 years. This is reckoned as a positive change as millennial women are turning independent in their own stride. An in-depth study by TransUnion CIBIL reveals that an upward trend has been observed with 48% growth in loan applications among women borrowers between the year 2015 and 2018.
Surveys also revealed that women take bigger loans compared to the male population. Infact, even the average loan amount for women borrowers is 35% higher compared to men.
So, what is triggering women to take more loans than ever?
Millennial Viewpoint
A big reason for increase in demand of loans lies upon the changing needs of the new generation especially the women chunk. This is particularly true for the digital space.
Millennial women have a wish list to adhere in the times to come. This is irrespective of their gender & will take time to make a realization. Millennial women have an own perspective to take charge of their spending & afford expenses such as wedding loans, credit card loans, etc. besides a personal loan.
With the changing times, purchasing power of an ordinary serviceman has also increased. Now, they have better jobs, designations & compensation. This has pumped the confidence of so many to take on avail personal loan products in an effort to improve lifestyles & deal critical situations.
Taking responsibility
Women are taking an initiative to do well financially and contribute to the daily household expenses. A recent study reveals that women expenditure at about 88% out of the total spending. However, the ratio of borrowers is biased towards salaried women more. Nearly 46% of the service class women are taking loans compared to the self-made businesswomen.
We see a significant rise in the spread of information among women for financial management, savings & investments. A trend also reveals that about 38% women borrowers check their credit score on a daily basis which implies that creditworthiness is a matter of concern for them. Infact, good ranked borrowers get the privilege to play an important role in interest rate reduction and flexible tenures.
Hefty Borrowings
Although, women have become popular in the borrowing market now, but they still call out for hefty amounts as borrowings. They are considered as new entrants and they are literally cutting through the market for more and more loans.
Another survey unfolds that women mostly take on travel & lifestyle cards to make changes to their current way of life. Infact the fuel cards outsmart the travel & lifestyle cards too at about 89%. Besides cards, gold loans, business loans and consumer loans are the toppers.
