Contrary to the belief that men spend cautiously on necessities and that women spend on vanity, a new survey by ZestMoney has shown that on an average, over 20 percent of loan amounts taken by women was for education. As compared to this, the loan amount taken for education by men was only six percent. Moreover, the average loan amount for women is higher than that of men by 35 percent. In 2019, the average amount of EMI Financing taken by women is around Rs 20,000, whereas for men the amount is Rs 15,000.
Around 76 percent of women make their own investment decision today and impressively, 88 percent women contribute to the household expenses.
“Financial inclusion will become a reality when people from all demography and geography get affordable EMI solutions. Women spending more on education underline the aspirations of women in India to up skill and lead much more independent lives. These customers are macro-influencers and we really want to understand such open opportunities to drive our future product strategy,” said Lizzie Chapman, CEO, and co-founder, ZestMoney.
The survey also showed that men took the maximum loan amount for e-commerce, they avail 83.4 percent as compared to women who amount for just 68.4 percent.
Women Leading The Charge When It Comes To Millennials Taking Loans
Another report shows that millennials are increasingly taking loans, some of them to even travel in or outside India. In this too, women are leading the charge, since there’s a 48 percent growth in credit applications among the women borrowers between 2015 and 2018, as the study from TransUnion CIBIL revealed. “We have witnessed more and more women, especially millennials, opting for loans. We have seen an increase of 15-18 percent in women taking loans in the past two years. We believe this healthy increase is mainly because they are becoming independent when it comes to making financial decisions,” Ketan Patel, CEO, CASHe, an online lending company, told Livemint.
Not only this but the survey also showed that women borrow a higher loan amount as compared to their male counterparts. “Millennials, irrespective of gender, have a wishlist that they want to tick off, without waiting for 5-10 years. Millennial women take ownership of major expenses of their lives, so they avail of wedding loans, as well as overdraft and credit card takeover loans, apart from regular loans,” says Satyam Kumar, CEO, and co-founder, LoanTap, a digital lending platform.
Over 20 percent of loan amounts taken by women was for education. As compared to this, the loan amount taken for education by men was only six percent
Modern Woman Believes In Taking Charge
Women are becoming more confident of handling their own financial matters. Not only this, but they are also becoming more conscious about taking charge of domestic expenses. According to a survey on women borrowers, #WorkingStree, conducted by IndiaLends, an online lending platform, around 76 percent of women make their own investment decision today and impressively, 88 percent women contribute to the household expenses. This also directs to a positive development that there is a clear rise in financial awareness among Indian women. “We have already seen about 38 percent of women borrowers monitor their CIBIL score regularly which implies that credit discipline is becoming a priority for them. Good credit behaviour is also rewarded by lenders who are playing a vital role in bringing more women into the credit landscape by offering preferential interest rates to them,” said Sujata Ahlawat, vice-president and head, direct to consumer interactive, TransUnion CIBIL.
Read More: These Women Tell You Why It Is Time To Take Charge Of Your Money