Women often have obstacles when they want to apply for a bank or an online Good Credit loan. This is especially true of women entrepreneurs who have small businesses. This is because banks often target businesses in the formal sector and when they will lend to informal small businesses, they prefer lending to men.
The man as the head of the family is considered the control and control over the assets and finances. On the contrary, female entrepreneurs are often overlooked.
Due to air conditioners being considered ineligible for bank loans
Many rural women eventually turned to micro-financial institutions for loans. The interesting part is, there is little LMM that has proven from years of experience that female borrowers actually have lower credit risk than men. Female borrowers in many Good Credits consistently have a very high rate of repayment. Examples are Good Lender or Co-operative Partners. Good Credit is a lender partner in Mekar and is a 153-member lending cooperative and approximately 370,000 female lenders. Every year, 99.7% of LTR’s lenders repay their loans on time.
In addition to Good Credit, there are two other lending cooperatives: Self-Employment Works and Good Finance which also lend to female borrowers. They conclude that the repayment rate is very high at 98% annually. Some studies have also shown that female borrowers in many countries always outperform male borrowers in the timely repayment of their loans.
Well, guys, there are a few reasons why female borrowers are more disciplined in repaying their loans to the Good Credit lenders.
No Other Alternatives
For most female entrepreneurs, getting a loan is not an easy task. It takes a long time and with a small business scale, getting a loan is much more difficult than if they were running a large scale business. Sometimes the only option because they don’t want to get into the loan shark trap.
Timeliness of repayment is also a reason for them to have access and to be able to get loans back in the future. This kind of determination is more often found in women than in men.
Shame If Not Pay On Time
The only reason this is a social factor that drives them to pay on time is that they are embarrassed by the people around them. They will be embarrassed by friends or neighbors if they are found not paying the bills. Women feel more pressure to be good borrowers than men because they are afraid of being criticized. In addition, they worry that their business will fail if there is a flow of funds in the middle of the road.
More Conservative in Designing an Investment Strategy
Having a good relationship with the Good Credit staff in the field has also been a major influence in encouraging female borrowers to repay their loans on time. The Good Credit usually holds a weekly group meeting where the borrower meets with the loan officer and performs transactions such as loan acceptance and installment payments.
Women are more likely to participate in these meetings than men, as men tend to feel reluctant to attend because their activities are more spent at work. In group meetings, borrowers can also often talk with lenders about the issues they face and share their experiences in growing their business. This positive relationship has a positive impact on loan repayment performance.