Women’s Share In Home Loans Increases; But Share In Business Loan Declines | International Women’s Day

How has the women’s share in different loans increased so far and where it still needs more representation in various sectors? Let us take a look in detail.

Written by: Anirudha Yerunkar

Published: March 8, 2024, 10:14 AM IST

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https://www.india.com/business/womens-share-in-home-loans-increases-but-share-in-business-loan-declines-international-womens-day-6772261/ Copy

Women Shares In Home Loan

The share of women home loan borrowers has increased from 32% to 33% in 2023 as compared to the previous year. Women’s borrowers in personal loan, education loan, gold loan also increased according to the data published by CRIF.

How has the women’s share in different loans increased so far and where it still needs more representation in various sectors? Let us take a look in detail.

Why Is Women’s Share In Loans Increasing?

1. Lower rate of interests offered by the bank if women are co-applicant or applicant
2. Properties jointly owned offer more security to the lender so they come with exciting offers where men and women can jointly buy the property.

Women Share Earlier And Now In Loans

• Women’s share in personal loans increased to 16% against previous year’s 15%.
• Women’s share in gold loans increased to 43% against previous year’s 41%.
• Women’s share in education loans increased to 36% against previous year’s 35%.
• However women’s representation in retail loans has declined.
• Women’s proportion in in total loans remains steady in past 12 months till December 2023.

However women’s contribution in business loans is still very less, as the ratio of women-men borrowers has dropped to 38:62 from 40:69 for the same period last year. Which led to the decline in women’s contribution in retail loans to 24% from 25% during last year.

Women’s share in Gold loans is highest in small business loans where their share has increased to 43%. Women have also shown interest in the auto sector, as women borrowers in two-wheeler and personal loans increased  26% year on year.

Retail loan portfolio has increased from Rs 100.3 lakh crore to Rs 117.4 lakh crore in December 2023, which is up from the last year, its a 17% 

year-on-year growth. Though Women participation in retail loans remained stable at around 26% but Active women borrowers rose to 7.8 crore in December 2023, which is up from 6.7 crore a year ago with a 17.8% year-on-year growth. 

At the same time Male’s contribution with active loans increased from 17.8 crore to 20.2 crore in Dec 2022, which is a 13.1% year on year basis.