The face of the Indian loan market is changing. For the first time, women are competing with men in the race of new to credit borrowers. According to the ‘Bridging the Gap’ report of credit agency Crif High Mark, the share of women will increase to 41% in 12 months by February 2026, which was 33% by February 2022. That means 4 out of 10 new borrowers are women. The special thing is that amidst the increase in consumer durable loans like TV, fridge, washing machine, women in states like UP, West Bengal are taking business loans to become entrepreneurs, whereas in the South, gold loans dominate. Consumer durables dominate the first loan. Among first-time loan takers, 32% take loan to buy a washing machine, fridge or TV. This becomes the entry point. And once the relationship is formed, it continues to last. 84.5% of those taking gold loan also take the next loan against gold. Priority for people taking loan for the first time? Consumer Loans – 31.6% Gold Loans – 20.2% Two Wheelers – 16.9% Personal Loans -11.0% Business Loans – 9.5% NBFCs are a big support for loans to newcomers It is generally believed that the burden of financial inclusion lies on public sector banks, but the data is telling the opposite story. Banks avoid giving loans to first-time borrowers. – Share of NBFCs increased from 50% to 61% – Share of government banks decreased from 16% to 13.6% – Private banks decreased from 22% to 15%. The number of women borrowers is highest in UP, Tamil Nadu and Maharashtra. The preferences of women are now changing. They are not only taking loan by mortgaging the jewellery, but are also taking a business loan to start their business. Business loans have become the leading product among women in 5 out of the top 10 states. First choice of women 1. Consumer Durable 25.2% 2. Gold Loan 21.8% 3. Business Loan 17.9% 4. Personal Loan 8.3% UP, Tamil Nadu and Maharashtra have the highest number of women borrowers. Women of South India are taking more gold loans, while women of North and East India (UP, Bengal, Bihar) are ahead in business loans. New borrowers are proving to be safer than expected. Their success rate is better. 67% of customers moved into safe risk category in one year. Youth – Starting with two-wheeler and personal loan For the youth below 25 years of age, ‘Mobility’ and ‘Liquidity’ are most important, which is why they dominate the two-wheeler and personal loan segment. At the same time, youth aged 26 to 35 years dominate in consumer durables, gold loans and business loans. Youth under 25 two-wheelers – 33.1% Personal Loans 50.3% Youth 26-35 years CDs 35.4% Gold Loans 29.4% Business Loans 30.7% Consumer Durables The risk profile of 80.4% customers in that age group (12 months, ended Feb 26) improved. – Two-Wheeler: 75.3% customers showed excellent discipline. The share of small and medium cities in two-wheeler loans is 71 percent and in consumer durable loans is about 67 percent.
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4.4 crore Indians will take loan for the first time in 2025: Women of South are taking gold and business loans of North India.
