Mumbai entrepreneur slams KreditBee for denying loan without male guarantor: 'Women are just as capable'

Curl Care founder and CEO Simran Sainani shared excerpts of her conversation with the KreditBee representative on LinkedIn. (Image credit: Curl Care, LinkedIn)

An entrepreneur in Mumbai has slammed KreditBee -- a digital lending platform that promises money into the applicant's account within 10 minutes of applying -- for rejecting her loan application because she did not have a man as a co-applicant and guarantor.

Simran Sainani, founder and CEO of Curl Care took to LinkedIn to share screenshots of her conversation with a KreditBee representative who confirmed that the platform indeed requires a male applicant for loans to be sanctioned. Moreover, the male applicant needs to be less than 55 years of age, automatically cancelling out Sainani's father as a possible applicant because he is 62.

"Did you know that as a female entrepreneur in India, you can be denied a business loan simply because you don’t have a male co-applicant? Yes, you read that right—no matter how capable, driven, or creditworthy you are, institutions like KreditBee have a 'strict policy' that blocks your access to funds unless you have a male guarantor," she wrote on LinkedIn. "And guess what? If you’re thinking your father could help, he must be under 55. If not, you better have a husband or a brother handy. Well, I don’t. My father is 62, and I’m being penalised for that."

When asked for a possible alternative in case a female applicant's father is over 55 and there are no other male members in the family, the KreditBee representative wrote to Sainani: "I am really sorry, Ma'am. In KreditBee, without co-applicant, we cannot provide loan to female applicant, as per our company norms." They further added, "Ma'am, if you will take any loan, you have to provide a guarantor... but the guarantor needs to be male."

Excerpts from the conversation between Curl Care founder and CEO Simran Sainani and a KreditBee representative on WhatsApp. (Image credit: Simran Sainani/LinkedIn)

Responding to the conditions, Sainani lamented that at a time when the Centre has been working strongly towards women empowerment, rules like these, create obstacles for women entrepreneurs. "To all the lenders out there: Women are JUST as capable of paying back loans and are more than worthy of supporting someone else as a co-applicant," she wrote.

Sainani's post eventually received a comment from the lending company. "Dear Simran, we're sorry your experience on the app didn't meet your expectations. At KreditBee, we put our customers first, and their satisfaction is a top priority. To help us assist you better, please share your contact details via DM or help@kreditbee.in. We look forward to hearing from you," it stated.

In a separate comment, the company claimed they do not "follow such practices". "Dear Simran, we would like to inform you that we do not follow such practices. We adhere to all RBI guidelines and industry compliances. Kindly share your contact details with us via DM we will immediately look into it," KreditBee commented.

But Sainani's post also struck a chord with other women entrepreneurs.

Shilpa Vadrevu, a founder from Visakhapatnam in Andhra Pradesh, claimed that her loan applications too were rejected by banks despite having an "excellent credit score" because she did not have a male co-applicant.

"I've gone through something very similar--I was applying for a housing loan and business loan on different occasions with an excellent credit score, only to be denied by four different banks because I didn't have a male co-applicant," she wrote on LinkedIn. "Imagine the frustration and anger--being financially responsible, independent, and creditworthy, yet being told that without a man backing me up, I can't secure a loan. In a generation where women are tirelessly fighting to be independent, it's disheartening to see such outdated and discriminatory policies still in place."

Meanwhile, a spokesperson from KreditBee said: "We at KreditBee are committed to providing financial solutions that cater to all people. Our credit underwriting process is driven by cohort performance and empirical data, ensuring it is not biased by geography, age, or gender; nor is it intended to be discriminatory in any way. Since inception, we have served nearly 20 lakh female customers across the country. We value all feedback and are committed to continuous improvement."

"In this particular case, we are actively trying to engage with the customer to resolve the matter."