In a startling revelation, Mumbai-based entrepreneur Simran Sainani, founder and CEO of Curl Care, has criticized digital lending platform KreditBee for denying her a loan due to the absence of a male co-applicant. KreditBee, which promises loan approvals within 10 minutes, rejected Sainani’s loan application solely because she did not have a man as a co-applicant or guarantor.
The Shocking Experience
Taking to LinkedIn, Sainani shared screenshots of her conversation with a KreditBee representative. During the discussion, it was confirmed that the platform requires a male guarantor for loan approval, and the man in question must be under 55 years of age. This policy automatically disqualified Sainani’s father, who is 62, as a co-applicant.
“Did you know that as a female entrepreneur in India, you can be denied a business loan simply because you don’t have a male co-applicant?” Sainani questioned in her LinkedIn post. “No matter how capable, driven, or creditworthy you are, institutions like KreditBee block your access to funds unless you have a male guarantor. And guess what? If your father is over 55, you’ll need to have a husband or a brother to apply. I don’t, and my father is 62, so I’m penalized for that.”
Gender Discrimination in Lending
When Sainani inquired about possible alternatives for women who don’t have a male co-applicant, especially if their father is over 55, the KreditBee representative responded, “In KreditBee, without a co-applicant, we cannot provide a loan to a female applicant as per our company norms. The guarantor must be male.”
This exchange left Sainani frustrated, especially in light of India’s recent strides towards empowering women entrepreneurs. She pointed out the irony of such policies being in place when the government is advocating for gender equality. “Women are just as capable of paying back loans and are more than worthy of supporting someone else as a co-applicant,” Sainani wrote, calling out the outdated gender-biased policies.
KreditBee’s Response
After Sainani’s post gained traction, KreditBee responded on LinkedIn. They issued a public apology, stating, “Dear Simran, we’re sorry your experience on the app didn’t meet your expectations. At KreditBee, we put our customers first, and their satisfaction is a top priority. Please share your contact details so we can assist you better.”
In a separate comment, the company denied having any such policies, stating, “We do not follow such practices. We adhere to all RBI guidelines and industry compliances.”
Shared Experiences from Other Female Entrepreneurs
Sainani’s post resonated with other women entrepreneurs facing similar hurdles. Shilpa Vadrevu, a founder from Visakhapatnam, also shared her experience of being denied loans by four banks despite having an excellent credit score. Like Sainani, she was denied loans because she didn’t have a male co-applicant.
“I was applying for housing and business loans with an excellent credit score, only to be rejected by multiple banks because I didn’t have a male co-applicant,” Vadrevu wrote on LinkedIn. “In a generation where women are striving for independence, it’s disheartening to see such outdated and discriminatory policies still in place.”
Conclusion
Simran Sainani’s experience highlights the gender biases that still exist in financial lending. Despite advancements in gender equality, women entrepreneurs continue to face discrimination. The stories of Sainani and Vadrevu serve as a wake-up call for financial institutions to review and revise their policies, ensuring that women have equal access to financial opportunities without the need for a male guarantor.
