More women borrowed personal loans during pandemic: report

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Bombay: According to a report, more women have used unsecured personal loans rather than home loans or car loans during the pandemic.

Personal loans, which are typically consumer loans borrowed without any collateral to meet expenses, saw a 23% year-over-year increase in the number of female borrowers in the first nine months of 2020-21 (FY21) through December, as against a 5% growth in the home loan segment, the report from CRIF High Mark, a credit information company, said on Thursday.

The COVID-19 pandemic has resulted in deeper financial problems in some households, as the pandemic and resulting lockdowns have hurt financially.

Active loans to female borrowers stood at 64.82 lakh in personal loans segment, compared to 43.54 lakh in home loans, while auto loans declined 4 percent to 18.18 lakh in women. borrowers, the report released in the run-up to said Women’s Day.

Women’s share in the overall personal loan and auto loan pie has risen by a percentage point to 16% now, the report said, adding that they make up 29% of the home loan market.

Data from the company shows that the average amount of personal loans borrowed by men and women has declined by 10% and 5%, respectively, over the past year.

The average amount of loans borrowed by women remains lower than that of men, while the average amount of car loans borrowed by women is 8% higher than that of men.

The share of the top five states in the outstanding personal loan portfolio for women increased by 18% from the previous year, and female borrowers in southern states have a higher credit portfolio than states in the south. west and north, he said.

A total of 1.8 crore of loans – divided into 18 lakh auto loans, 15 lakh home loans and 1.5 crore of personal loans – were made in the first three quarters of 2020-2021, he said. , adding that this was 40% lower than 2.97 crore in the period of one year ago.

In terms of the value of loans to female borrowers, public sector banks have had the largest share observed over the past four quarters, followed by NBFCs and private banks, he said.

Maximum loans are given to women aged 26-35, accounting for 40% of overall disbursements in 2020, he said, adding that 6.26 crore of female borrowers have a credit history to date.

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