47% Of Women Take Financial Decisions On Their Own, 50% Of Salaried Women Have Never Taken A Loan

New Delhi: Around 47% of them make independent financial decisions, a reflection of women’s growing financial autonomy, found a comprehensive study DBS Bank India in partnership with CRISIL. 

More significantly, the report revealed that half of the salaried women i.e, 50 percent of the salaried women have never taken a loan. Among those who have borrowed, the majority opted for a home loan, which reflects the deep cultural importance associated with homeownership in India, the report added.

The study 'Women and Finance’ based on the survey that was designed to reveal the financial preferences of women, both salaried and self-employed, across various life stages. Over 800 women were surveyed across 10 cities in India on a wide range of behaviours, including their involvement in financial decision-making, goal setting, saving and investing patterns, adoption of digital tools as well as their preferences for different banking products.

The study added that age and affluence play a pivotal role in shaping these decisions. Women over 45 years old, with their wealth of experience, emerge as the leaders, with 65% making independent financial choices compared to 41% of those aged 25-35 years

The study also deep dived into women’s usage of different banking and payment channels. 33% of those in the 25-35 age bracket prefer to use UPI for online shopping, while only 22% above 45 years use UPI.

The report provided an interesting glimpse into the growing empowerment of earning, metropolitan women adding that across India, a woman’s primary long-term financial priority evolves with age. 

Buying/upgrading a home is priority number one for those between 25-35 years, while it evolves to children’s education for those in the 35-45 year category and to medical care for those above 45 years of age. Expectedly, retirement planning is seen entering the consideration set for the first time in the 35-45 year age cohort.

It added that Women earners in the metros tend to be risk-averse with 51% of their investments parked in fixed deposits (FD) and savings accounts, followed by 16% in gold, 15% in mutual funds, 10% in real estate and just 7% in stocks.

Specifically, 43% of married women with dependents conservatively allocate 10-29% of their income to investing, while in contrast, a quarter of married women without dependents choose to invest over half of their income. 

Regional variations lend greater depth to the insights. For example, Hyderabad and Mumbai lead the way in credit card usage, with 96% of women in Mumbai relying on credit cards, while only 63% of women in Kolkata use them.