Female Borrowers Lead in Responsible Credit Behavior: Fibe Study
As International Women’s Day approaches, Fibe, a leading fintech platform, unveils intriguing revelations about the credit behavior among female borrowers. The study suggests that women exhibit a higher degree of responsibility in credit management, being 10% more likely to repay EMIs on time compared to their male counterparts. This trend underscores their conscientious approach to debt and reflects prudent decision-making habits, emphasizing their dedication to sound financial management.
The study also sheds light on the significant increase in credit demand among New-to-credit (NTC) women customers over the past five years. According to the survey, this demand has more than doubled, rising from 18% in 2019 to a remarkable 40% in 2023. In contrast, there has been a notable decline of 22% among male NTC customers, with demand decreasing from 82% in 2019 to 60% in 2023.
| Credit Profile | Percentage |
|---|---|
| NTC Customers | 32% |
| Credit Card Owners | 13% |
| No Credit Card, Other Loans | 18% |
| Limited Credit History | 22% |
The data further reveals intriguing trends in the credit profiles of women borrowers. Among all women borrowers, NTC customers constitute the largest share at 32%, followed by 13% who own credit cards and regularly avail loans. Additionally, 18% of women opt for other loans despite not owning a credit card, while 22% have a limited credit history. This demonstrates a significant growth in female credit borrowers in the country, driven by their aspirations.
Furthermore, the study highlights the responsible borrowing behavior among women, indicating a shift in the age for availing a first loan over the last five years among NTC customers. The average age for taking a first loan has risen from 26 years in 2019 to 31 years in 2023.
Akshay Mehrotra, co-founder and CEO of Fibe, commented on the findings, saying, “We conducted this study to understand evolving consumer credit behavior and ensure our products and services meet the diverse needs of our customers. The surge in credit demand, coupled with their outstanding repayment track record, showcases newfound financial independence and determination to fulfill their aspirations.”
With women leading the way in responsible credit behavior and demonstrating a strong commitment to financial management, these insights are invaluable for shaping future financial products and services tailored to meet the evolving needs of female borrowers.
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