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Here’s why women get more loan approvals than men

posted on Apr 11, 2019 |   89 likes


Ever wondered why women get their loan approved faster than men? You need to read this

Women have long been advantaged when it comes to access to credit or other financial services provided by financial institutions.

Deemed as more creditworthy than their male counterparts, many women get their loans approved faster.

If you’re wondering why that is, you are not alone.

A lot of people have also asked the question “why” or “why not”, so today we decided to share our views on the topic.

There are many reasons why female borrowers are less of a headache for many financial houses. Here are some of them:

1.     Fear of feeling ashamed of not repaying

Women sometimes “express fear of feeling ashamed if their friends or neighbors find out that they did not repay their loan on time”. It may seem like a negligible reason but women feel a greater urge to be good borrowers than men due to this fear of criticism.

They also feel the fear of failing at keeping their life/business running. Their family income depends on it, so they don’t want to jeopardize it.

2.     More conservative spending/investments

Women are also more conservative or cautious than men in their investment strategies. Women typically take loans in the amount that they know they would be able to repay and not based on how much they actually need.

This plays a critical role in helping them repay comfortably.

3.     Access to other funds channels

Women can access other emergency funds faster than men. Funds from relatives, or friends can be easily mobilized to help her get out of a situation. 

In the same vein, when repaying a loan seems not feasible, she quickly tries to mobilize other funds to serve as her backup.

She does this because she wants to avoid any form of shame and disgrace that might result from defaulting in repaying her loan.

Here’s a simple scenario to help us buttress this point;

You have just N100,000, If your mother asks you for N100,000 and your father asks you for the same 100,000, both have assured you of repaying on the same date (if nothing else comes up), who will you give the money to?

Well it’s your answer…don’t tell me.

4.     The home setup

While compiling this list, we asked colleagues randomly who takes care of the giant share of financial responsibilities in their homes.

Over 80% of staff that are unmarried responded that it is their father. While those who are married testified that their husband takes a larger chunk of the financial burden.

We then imagined, could this be part of the reason why men tend to default more in loan repayment than women?

Could it be that there are so many things the man can do with money? All demanding attention at almost the same time?

If you answer yes, then you may be correct, the men by default assume roles in the home that requires them to be financially apt at all times.

On the other hand, the women have less things to spend her money on, they have fewer things to worry about.

This reduces her uncertainties, and therefore directly increases her credit score.

5.     History has proven it.

Globally, financial institutions and banks have reported that when it comes to personal lending, women are the ideal customers. 

Their reasons are diverse, but the ones we have mentioned above are some of the major reasons that reoccur more often whenever this topic of discussion is discussed.



So, if you’re a male, the next time you want to take a loan and the officer is being diligent in doing his job, don’t be in a hurry to conclude that he doesn’t want to give you the loan, he just wants to make sure that all the Ts are crossed and the Is dotted.

And for women, this does not mean the due diligence of credit worthiness checks will no longer be applied.

However, all things being equal, women have more tendency to repay their loans as at when due, making them historically the more ideal gender for financial loan products.

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