Gender Difference In Car Loan Access In India

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Across the world, there is a widespread perception that women are subject to discrimination in financial institutions. This widely held belief is reasonably a result of the division of social purpose among the sexed bodies during birth, but what remains to be understood is that there are times when the immediate aim is to attain gender equality. How much of this is true for the Indian car loan industry?

Many of you might wonder why the car loan industry holds this much significance. An answer to that would be that, with increasing modernization, a pool of women is on somewhat equal footing with men in terms of financial independence. Also, with similar CIBIL scores, it becomes convenient to compare and display data in a meaningful way.

Why this topic?

Before we dwell on the data set, let us understand why a need to dig into this topic arises: “What is gender equality, and why are so many companies these days racing towards attaining a gender-neutral environment?” Are there no natural-born differences between men and women? And as most women are co-dependent on their men for support and mostly earn less, why even consider giving those loans, as any rational business would look at credibility before assigning loans to someone?

Used Car

All these questions are essential to answer. Some of these might seem rational and built on a sane foundation. For instance, it is a fact that women earn less and are mostly unemployed. According to World Bank estimates, the female participation rate in India is somewhat less than 20 percent. Now that most women cannot provide for the installments because they lack financial stability, it is a solid ground for companies to offer loans to them.

What we do not understand is that this is an odd argument given that the data set used for the study includes women from urban families who are pursuing empowerment not through interventions but through attempts to expand their social roles. Applications from women with a low CIBIL score have a lower likelihood of approval when compared to those from men. Also, the applicants who attained a relatively high CIBIL score we charged higher interest rates than their male counterparts.

Now a few companies have started up with car loan schemes that have unique benefits and special interest rates for women, which are, in fact, the way forward. In these days of perpetuating hatred, a sensitized environment is essential. Comparisons lead nowhere but trivialize both parties involved into politically charged animals becoming the subject of their oppression.