Women have made significant progress in understanding their finances, making investments, and achieving their long-term and short-term goals. Many women today are increasingly independent in making their financial decisions, no longer relying solely on male family members for guidance or control.
This has been largely kindled by new-age financial institutions, who have made substantial efforts to empower women to achieve their goals. Furthermore, according to a recent CRIF Highmark report, the personal loan segment witnessed a significant rise in women borrowers, with active loans increasing by up to 52%. That being said, it is clear that an increasing number of women are turning to various personal loans to help them achieve their goals.
Despite women increasingly taking charge of their financial destinies, access to credit remains critical in achieving professional and personal aspirations. Although significant strides have been made in gender equality, women still face challenges in accessing credit, hindering their professional and personal growth.
Challenges faced by women while accessing credit
A recent study states that Indian women are 10% more likely than men to pay their EMIs on time, showcasing their responsible approach to debt management and financial decision-making. Despite women being very responsible and cautious with their finances, they lack access to personal loans.
One of the main reasons behind this is a lack of awareness. In contemporary times, myriad options are available to access loans with speedy disbursal options. However, many people are unaware of it, while others would prefer to take out a loan from a formal institution, where the procedures are more tedious. Although this mindset is improving over time, much more work is still to be done to raise awareness and educate female clients about the benefits of opting for digital loans. Women of today’s age require short-term ticket loans to fulfil their goals such as travel goals, upskilling goals to stay ahead in their professional career and the like, which is usually not a convenient option through formal financial institutions.
How women can access personal loans and use it for their personal and professional growth
Research online lenders and compare interest rates:
Women can begin by exploring online lending platforms that provide personal loans. Look for sites that have clear conditions and credible user feedback. Moreover, women can look for online lending platforms that offer instant personal loans within a few clicks. This reduces documentation and other formal procedures. Utilise the comparison tools accessible on different platforms to compare interest rates, loan amounts, repayment terms, and associated costs. Choose a loan choice that meets your financial needs and goals. When applying for a loan, keep in mind that applying with many lenders may result in an adverse impact on your credit score.
Utilise Funds Wisely:
Allocate the loan funds strategically to support your personal and professional growth objectives. Borrowing what you need is a sound financial plan. It prevents you from sustaining unnecessary debt and allows you to allocate resources towards your goals. By being mindful of your borrowing and prioritizing your needs, you may better connect your financial decisions with your personal and professional development goals. This strategy encourages financial discipline and helps you make the most of the resources available to you.
Budget for Repayment:
Developing a repayment plan that fits within the budgetary constraints is essential. One must incorporate the habit of setting aside a portion of their monthly income to ensure timely repayment of the loan. Automated payments can help you stay organised and avoid late fees.
Monitor Credit Score:
Regularly monitoring your credit score allows you to track your financial performance and identify any potential issues. Responsible management of personal loans can positively impact creditworthiness over time, paving the way for future monetary opportunities.
Conclusion
According to a recent report, there has been a significant increase in credit demand among new-to-credit (NTC) women customers, with their demand more than doubling over the last five years, from 18% in 2019 to 40% in 2023. This compelling evidence highlights the pivotal role that access to personal loans plays in enabling women to pursue their aspirations for both professional and personal growth. Financial institutions must tailor their products and services to the unique needs of this demographic. Financial organizations can empower women by providing customized solutions that can solve their specific challenges.
By addressing systemic barriers, building gender-sensitive practices, and offering customised financial solutions, we can create a more inclusive and equitable lending ecosystem that empowers women to aspire, acquire, and achieve their aspirations. As we celebrate the strides made by women, it is imperative to address the challenges faced in accessing credit and leveraging personal loans wisely, women can further enhance their financial autonomy and pave the way for a brighter future. The author is the CoFounder & CEO at Fibe. Views are personal.
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