More women have resorted to unsecured personal loan borrowings rather than home loans or auto loans during the pandemic, a report said on Thursday.
Personal loans, which are typically consumption loans borrowed without any security to meet expenses, have witnessed a 23 percent year-on-year rise in the number of women borrowers in the first nine months of 2020-21 (FY21) till December, as against a 5 percent growth in Home Loans segment, the report by CRIF High Mark, a credit information company, said.
The COVID-19 pandemic resulted in deeper financial issues in some households as the pandemic and the resultant lockdowns hurt financially. The active loans to women borrowers stood at 64.82 lakh in the personal loan segment, as against 43.54 lakh in home loans, while auto loans witnessed a 4 per cent de-growth to 1.18 lakh women borrowers, the report released in the run-up to the women's day said.
Women's share in the overall personal loan and auto loan pie has increased by one percentage point to 16 percent now, the report said, adding they constitute 29 percent of the home loans market. The company data said average ticket size of personal loans borrowed by men and women has reduced by 10 percent and 5 percent, respectively, over the past one year.
The average size of loan borrowed by women continues to be smaller than that borrowed by men, while the average auto loan size borrowed by women is 8 percent higher than that borrowed by men. The share of top five states in the personal loan portfolio outstanding for women has increased by 18 percent over the previous year, and women borrowers from southern states have higher credit book size as compared to western and northern states, it said.
A total of 1.8 crore loans – split into 18 lakh auto loans, 15 lakh home loans and 1.5 crore personal loans – were given out in the first three quarters of 2020-21, it said, adding that this was 40 percent lower than the 2.97 crore in the year-ago period. In terms of the value of loans disbursed to women borrowers, public sector banks have had the largest share observed over the past four quarters, followed by NBFCs and private banks, it said.
Maximum loans are given to women in the age group 26-35 having a share of 40 percent in the overall disbursements in the year 2020, it said, adding that 6.26 crore women borrowers have a credit history as of now.