Personal Loans to Women Increase in India
5 min read | 2 months ago
Ladies, are you thinking about applying for a personal loan to help fund your dreams and goals? In recent years, more and more women in India, estimated at around 19% in 2023, are taking out personal loans, and this is for good reason. In this blog post, we'll explore the trends of women taking personal loans in India and offer tips to keep in mind when applying to get an instant personal loan with the terms and conditions in mind.
Women apply for personal loans for various purposes, including home renovation, medical bills, education and debt consolidation. The loan amount borrowed by women ranges from a few thousand to Rs. 5 Lakh or more, and the repayment tenure can be anywhere from months to up to 3 years.
Personal loans are becoming the go-to choice in India, and women are no exception. However, the trend of women borrower growth has been positive in general. We'll tell you about it in detail, so keep reading.
Trends for Women Taking Personal Loans
According to a recent report published by TransUnion CIBIL, women borrowed personal loans at a greater rate than men. Additionally, over the last five years the average number of women borrowers rose by 15% as compared to 11% for men. The report goes on to indicate that women have a higher average credit score than men do. That is, they can get instant personal loans on better terms because their risk profile is viewed as less risky than those of males.
So now the question is, why are more women taking personal loans? A significant reason is that women are gaining more financial independence and pursuing their goals. Personal loans allow them to realise their dreams and satisfy their financial needs without depending on others. What's more, the things that women take out as personal loans- such as education, home renovation, and medical care- are all major investments in their lives.
Tips to Keep in Mind Before Applying
Before applying for a personal loan, there are a few things you should keep in mind to ensure you make the best decision for your financial situation.
1.Check your credit score: Your credit score is one of the most important factors that lenders consider when approving a personal loan. A good credit score can help you get a lower interest rate and better loan terms. Moreover, a high score of 780 or above can help you secure a personal loan fast approval. You can check your credit score for free on websites like CIBIL. Don't forget to check for errors and dispute any mistakes you may find.
2.Compare lenders: It's important to shop around and compare different lenders to find the best deal for you. Different lenders offer different interest rates and loan terms. You can use online comparison websites to compare lenders or visit the websites of individual lenders to get quotes. Just make sure you're comparing apples to apples, meaning the same loan amount and repayment period.
3.Read the fine print: Before you sign on the dotted line, make sure you read the terms and conditions carefully. Pay attention to the interest rate, repayment tenure, and any fees or charges that may apply. If you have any questions or concerns, don't hesitate to ask the lender. You don't want any surprises later on.
4.Only borrow what you need: It's tempting to take out a larger loan than necessary, but it's not wise. Only borrow what you need and can afford to repay. Taking out a larger loan than necessary can lead to higher interest charges and longer repayment terms. Plus, it's always a good idea to have a plan to pay back the loan before you take it out.
Conclusion
In conclusion, personal loans are a great option for women in India who want to pursue their goals and meet their financial needs. The trend of women taking personal loans is expected to continue to grow in the coming years. However, it's important to keep in mind the tips we've shared before applying for a personal loan. By checking your credit score, comparing lenders, reading the fine print, and only borrowing what you need, you can make the best decision for your financial situation. So, go ahead and pursue your dreams, ladies. A personal loan may just be the help you need to make them a reality.
FAQs
1.Why are personal loans to women increasing in India?
Increased financial literacy, improved economic conditions, and government initiatives promoting women's entrepreneurship are contributing factors.
2.Are women receiving the same loan terms as men?
Yes, financial institutions are offering the same interest rates, repayment terms, and loan amounts to both men and women.
3.What are the benefits of personal loans for women in India?
Personal loans provide women with financial independence, the ability to invest in their businesses, and access to funds for personal expenses.
4.How can women increase their chances of getting approved for a personal loan?
Maintaining a good credit score, having a stable source of income, providing accurate financial information, and having a clear loan repayment plan can all increase approval chances.
About Unity Small Finance Bank
Unity Small Finance Bank is committed to making banking simpler and more accessible for everyone. Our services include Savings Account, NRI account, Current Account, Fixed Deposits, and Personal Loans offering flexible tenures and attractive interest rates. We also offer financing options like MSME Loans and Microfinance to support businesses and underserved communities. Learn more about Unity Small Finance Bank here.
