CIBIL Report: 48% Surge in Women Borrowers from 2015-2018

India has seen a huge change in terms of the type of credit borrowers. The country has witnessed a significant increase in the number of women borrowers in the past couple of years. As per a recent report from TransUnion CIBIL credit information company, India has witnessed a 48% rise in women borrowers in the past four years in the period between 2015-2018. The report further revealed that in, comparison, the male counterparts saw a surge by only 35%.

Giving further insights, the CIBIL survey added that during the period of four years from 2015-2018, there were around 8.6 million women borrowers, who had taken loans for the first time. About two-thirds or 66% of the women borrowers were from the states of Andhra Pradesh, Maharashtra, Karnataka, Tamil Nadu, and Kerala. The CIBIL survey revealed that the average credit score among all women consumers is more than 770. Talking about the types of loan, the survey revealed that women borrowers availed gold loans with 56.4 million accounts from 2015-2018. There was a 13% decrease in the demand for gold loan in 2018. As per the CIBIL report, there was a year-on-year increase in the number of women borrowers who applied for consumer loans, personal loans, and two-wheeler loans. Out of all the three types of loans, the demand for consumer loan was the highest with a growth of 31%. Meanwhile, between 2017 and 2018, personal and two-wheeler loan demand among women borrowers stood at 19% and 14% respectively. 

Kerala and Tamil Nadu women borrowers had an average CIBIL scoreof 781, according to the CIBIL survey. When it comes to risk profiles, the two southern states had the lowest borrowing risk. Millennial women (women under 35) had an average credit score of 773, added the study. On the other hand, women between the age of 35-45 age had a credit score 776. Lastly, women borrowers above the age of 45 had the highest average credit score of 785. CIBIL survey mentioned that the average credit score among all women increases with age. 

Harshala Chandorkar, Chief Operating Officer (COO), CIBIL shared her insights about the growth of women borrowers. She added that it is great to see a soar in demand for business loans from women borrowers from the aforementioned states in the country. She further revealed that these states also have the highest number of female Ministry of Micro, Small and Medium Enterprises (MSME)-owners. According to Harshala, women-oriented financial inclusion policies from the various governments have played a role of catalyst and helped fueled the growth even further. India will witness a growth in the demand for credit by women borrowers owing to a number of factors such as rise in women who are employed, a surge in women’s education levels, and upward trend in the consumption of consumer durables in large cities and towns. 

Importance of CIBIL score 

Your credit score is a key measure that decides the interest rates for your loan. It represents your ability to repay the borrowed sum in a numerical format that ranges between 300-900. You should work towards bringing your CIBIL score closer to 900. A large number of lenders offer loan to people who have a CIBIL score of more than 750. Lenders these days are offering preferential pricing on loan interest rates to people with a high CIBIL score. With a high CIBIL score, you can quicker approvals for loans, cheaper interest rates, credit cards with higher credit limit, as well as negotiation powers. You can even get a discount on processing fee and other charges on your loan application. 

You should check your CIBIL score and CIBIL report from time-to-time as it gives you an idea of your credit health. You can check your CIBIL report for free by visiting the official websites of the credit bureaus. In 2017, the Reserve Bank of India (RBI) made it mandatory for all the credit bureaus in the country to offer one detailed credit report to consumers for free in one calendar year. There are four credit bureaus in the country- TransUnion CIBIL, Equifax, Experian, and CRIF HighMark. Therefore, you can get four credit reports for free in a year. 

Tips for Women Borrowers to Improve Their CIBIL score: 

• Pay off all your debts and clear outstanding dues if any. 

• Make sure to pay your credit card bills and loan EMIs on time and avoid late payments. 
• You should use up to 30% of your credit card limit and maintain a low credit utilisation ratio. 
• Limit the number of credit inquiries and instead spread them throughout the year. 
• Check your credit score from time-to-time. 
• Avoid closing old credit cards that have a long credit history and a consistent repayment behaviour. 

• Try and increase credit limit on your credit card. 
• Always pay the credit card bills in full and avoid going for minimum balance due. 
• Maintain a healthy balance of secured and unsecured loan. 
• Monitor your credit report and look out for any errors. You can raise a dispute with the credit bureaus and fix the errors at the earliest.