Indian women are borrowing higher amounts for home loans as compared to men. According to a survey by online marketplace for financial products, BankBazaar, the average home loan ticket size with women as primary applicants was Rs 27.57 lakh, as compared to Rs 22.97 lakh with men as primary applicants.
One reason could be that when a woman is the primary applicant, chances of the family being a two-income household are higher, as compared to when the man is the primary applicant. So, in the first case, the family is able to take a bigger loan, said Adhil Shetty, co-founder & CEO, BankBazaar. Another reason is the lower rates offered by banks and housing finance companies for women borrowers, prompting more women to take home loans, he added.
‘BankBazaar Moneymood 2019’, a report based on data from 169 million users who used BankBazaar’s website, also said that the the demand for credit cards was quite high among women.
In 2018, the increase in women consumers applying for various kinds of credit cards was 89% for fuel credit cards. Similarly, women applicants for travel credit cards increased by 73%, as compared to 71.5% men.
More youngsters want lifestyle credit cards
The demand for lifestyle credit cards has seen tremendous growth, especially among those under 25 years and non-metro applicants. Attractive discounts and deals have fuelled the demand for cards from first-time and non-metro users, the report said. There has been a 64.5% year-on-year increase in lifestyle credit card applications from non-metros and a 53.67% y-o-year increase in lifestyle credit card applications from users under the age of 25.
Fuel credit cards saw a massive spurt in demand, with a 104% rise in card applications from people under 25 years of age. Metros witnessed a 62% y-o-y increase in fuel credit card applications compared with an 85% increase from non-metros. Young indians with wanderlust are aware of the benefits of travel credit cards and an increasing number of people are applying for them. There was a massive 195% growth in travel credit card applications from those under 25 years of age. Non-metros saw a whopping 309% y-o-y rise in travel credit card applications compared to a 59% increase from metro cities, the report said.
Non-metros avail more personal loans
The report also said that demand for unsecured credit in non-metros outpaced that of the metros in 2018, and this trend could continue in 2019 as well. The average personal loan ticket size in non-metros is Rs 2.80 lakh, while it is only Rs 2.55 lakh in metros. However, the highest personal loan ticket size of Rs. 47.23 lakh came from Bangalore, while the highest non-metro personal loan ticket size from Vapi was of Rs. 25 lakh.
“One reason could be that people in metros have better access to credit cards while those in non-metros may not. So, there could be a higher demand for personal loans from non-metros,” Shetty said.
Paperless finance gaining popularity
The report also said that paperless finance is gaining popularity, as incidated by a 198% y-o-y growth in paperless approval of personal loans, an 11% y-o-y increase in paperless approval of credit cards and a 38.3% y-o-y rise in paperless approval of car loans.
In 2018, there was a 42% increase in the highest car loan ticket size compared to the previous year. The average car loan ticket size for metros (Rs 5.72 lakh) marginally outperformed the average car loan ticket size for non-metros (Rs 5.21 lakh), the report said.