5 Reasons Why Women Tend To Be Better Borrowers Than Men!
When we talk about business professionals, entrepreneurs, company owners, organisational heads and other self-employed people, most of us just end up imagining a man. Don’t we? Well, it’s a true pleasure to mention the fact that this is totally wrong. The reality is extremely well-balanced. We live in the era where just in our own country, we literally have over 20% of MSMEs owned and run by women. The past decade has brought a lot of financial parity amongst genders with the increase in bank accounts and credit extensions specifically for women. This is what has helped create millions of thriving women-owned organisations and businesses.
That’s not all. It takes a lot of financial aid and credit to grow businesses and while men seem to take these loans out for the same purpose, they end up screwing up but women don’t. Surprisingly, an analysis of the last 10 years of data for this sector shows remarkably low default rates and strong overall growth among women. This could genuinely mean that women are just better borrowers. Well, we saw it coming, didn’t we?
Are you wondering what makes women so much better at borrowing? Let’s make a list and learn more about this.
5 Reasons Why Women Are Better Borrowers
1. The Default Rates In Home Loans Is Lower
According to a study conducted in December 2019, approximately 29% of home loans in India are availed by women. So, women tend to be careful about returning these thereby maintaining a great credit score.
2. Women Self-Monitor Like Bosses!
A recent study conducted by TransUnion Cibil claims that women focus more on self-monitoring. In fact, between 2018 and 2019, the self-monitoring aspect amongst women rose by 62%. Notably, this was twice the rate of self-monitoring men. Women know how to monitor themselves and their credit scores to manage their finances well.
3. Women Are Great At Business Spending
Unlike men, women tend to be careful with business spending. They make sure that they are conservative and cautious with funds especially when they come from loans. This makes it easier to pay back loans.
4. Social And Self-Pressure Are Massive
Women tend to find it difficult to deal with the fact that their family and friends might find out that they are defaulting on loans. Furthermore, societal pressure and criticism from society make it essential to return loans on time.
5. Women Know Finance Better
Since it isn’t common for women to be introduced to the world of finance, women have to take matters into their own hands and learn things their own way. This makes them more aware and prepared as compared to men. This is why they are always careful with their credit score by returning loans on time.
Also Read: We Don’t Want A ‘Men Make Dinner Day’. Can Men Just Lend A Helping Hand In The Kitchen Daily Instead?
These are a few reasons why women are now, more preferred borrowers. This makes way for more business opportunities for women and we can only hope they take full advantage of these because we sure as hell need more working women, don’t we?
