430% rise in investments by millennial women in P2P lending: Study
According to a report by LenDenClub, Mumbai had the greatest number of women borrowing via Peer-to-Peer (P2P) lending sites, followed by Hyderabad. Mumbai, Bangalore, and Hyderabad are the cities where women are most likely to invest in the P2P area.
Women investors in the P2P lending area increased by 430% in FY22 compared to FY21. On the borrower side, there has been a 150% increase in women borrowers’ YoY. The average amount invested in P2P lending is RS. 50,000 (US$ 650). Of the women who invested in the platform, 100% of them re-invested their money.
Women appear to be more diligent about loan repayment, with only 3.37% of women delaying or defaulting on their payments. They borrowed amounts as high as Rs. 7 lakh (US$ 9,107.35) and as little as Rs. 10,000 (US$ 130), with an average borrowing ticket size of Rs. 70,000 (US$ 910).
Millennial women between the ages of 21 and 30 were the most active borrowers (56%) and lenders (54%). It was followed by the 31-40 year old demographic, which accounted for 37% of borrowers and 33% of lenders, respectively.
Women mostly borrowed from medical emergencies to care for themselves and their family. They also borrowed money for educational purposes, demonstrating that they are career-focused and effectively planning their future by using P2P lending platforms to obtain loans.
The research report was based on data from 20,165 female investors and borrowers in P2P lending from April 2021 to March 2022.
Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.