Fast loans, no collateral: What banks are offering women now
A quiet shift is underway in India’s lending market. Banks and NBFCs have started pushing out personal loans tailored for women, often marketed as easier to access, faster to disburse, and more forgiving on repayment terms. The goal, at least on paper, is to increase financial inclusion—but not everyone is convinced that the benefits match the buzz.
These loans are unsecured—meaning no collateral is required—and are being offered for a range of reasons, from starting a business to covering wedding costs, home renovations or medical emergencies.
Better rates only if the credit score behaves
Several lenders appear to offer slightly better interest rates for female applicants, though the margin is usually small. In most cases, a good credit score—typically above 685—plays a bigger role in securing favourable terms than gender alone. Lenders say women often have higher repayment discipline, which might be why they’re seeing more curated offerings in this segment.
Repay on your own terms
Tenures usually range between 12 and 60 months. Women can choose EMI structures that suit their income flow. Minimum monthly income requirements hover around ₹15,000, though this can vary. Both salaried and self-employed women are considered eligible as long as they can show stable earnings.
The application process, especially for existing bank customers, is increasingly digital. Fewer documents, faster approvals, and mobile-based applications are the new standard—though not without glitches.
Eligibility doesn’t bend much
While the product is branded with women in mind, the basic eligibility rules aren’t drastically different from standard personal loans. Applicants usually need to be between 21 and 60 years old, have verifiable income, and meet the credit score criteria.
Some fintech platforms claim to be more lenient, especially for first-time borrowers, but these cases remain limited. Verification still includes identity proof, income documents, and recent bank statements.
More than money—less than revolution
Financial analysts suggest that these loans are not just about capital—they’re about access. For many women without assets or family backing, a no-collateral loan can offer a shot at independence.
But the ecosystem still has work to do. Transparent terms, consistent servicing, and a genuine push for inclusion beyond branding are still works in progress.
(By arrangement with livemint.com)
