Mumbai Entrepreneur Slams KreditBee For Loan Denial Without Male Guarantor; Check Details

Simran Sainani, founder and CEO of Curl Care, posted screenshots of her conversation with a KreditBee representative on the professional networking platform LinkedIn

An entrepreneur from Mumbai has criticised KreditBee, a digital lending platform, for rejecting her loan application because she did not have a male co-applicant and guarantor. Simran Sainani, founder and CEO of Curl Care, posted screenshots of her conversation with a KreditBee representative on the professional networking platform LinkedIn.

The screenshots reveal that KreditBee's policy requires a male co-applicant to approve the loan. Additionally, the male co-applicant must be under 55 years old, which disqualifies Sainani's father, who is 62, from being a potential co-applicant.

“Did you know that as a #FemaleEntrepreneur in #India, you can be denied a business loan simply because you don’t have a male co-applicant? Yes, you read that right—no matter how capable, driven, or creditworthy you are, institutions like KreditBee have a “strict policy” that blocks your access to funds unless you have a male guarantor,” she wrote in her post on LinkedIn.

“And guess what? If you’re thinking your father could help, he must be under 55. If not, you better have a husband or a brother handy. Well, I don’t. My father is 62, and I’m being penalised for that,” she added.

In the shared screenshots, it can be seen that the KreditBee representative wrote to Sainani, "I am really sorry, Ma'am. In KreditBee, without co-applicant, we cannot provide loan to female applicant, as per our company norms." 

The representative further added, "Ma'am, if you will take any loan, you have to provide a guarantor... but the guarantor needs to be male."

Sainani further said in her post that at a time when the Indian government is making significant efforts towards women empowerment, such rules create barriers for women entrepreneurs.

She wrote, “It’s 2024, folks. We keep shouting about #BetiPadhao, but forget to mention the fine print: hashtag#CoapplicantKeBinaMatBadhana. To all the lenders out there: Women are JUST as capable of paying back loans and are more than worthy of supporting someone else as a co-applicant. Janhvi Pradhan-Deshmukh and I are here to break these outdated barriers and give women the financial respect and independence we deserve!”

Sainani's post eventually got a response from KreditBee. “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. To help us assist you better, please share your contact details via DM or help@kreditbee.in. We look forward to hearing from you,” the lending firm wrote in the comment section.

In a separate comment, the firm said, “Dear Simran, we would like to inform you that we do not follow such practices. We adhere to all RBI guidelines and industry compliances. Kindly share your contact details with us via DM we will immediately look into it.”

In a statement to ABP Live, a spokesperson from KreditBee said, "We at KreditBee are committed to providing financial solutions that cater to all people. Our credit underwriting process is driven by cohort performance and empirical data, ensuring it is not biased by geography, age, or gender; nor is it intended to be discriminatory in any way. Since inception, we have served nearly 20 lakh female customers across the country. We value all feedback and are committed to continuous improvement. In this particular case, we are actively trying to engage with the customer to resolve the matter."

Several people resonated with Sainani's post and shared their experiences in the comment section. One internet user wrote, “I've gone through something very similar—I was applying for a housing loan and business loan on different occasions with an excellent credit score, only to be denied by four different banks because I didn't have a male co-applicant. Imagine the frustration and anger- being financially responsible, independent, and creditworthy, yet being told that without a man backing me up, I can't secure a loan,”

The user added: “In a generation where women are tirelessly fighting to be independent, it's disheartening to see such outdated and discriminatory policies still in place.”

Another comment reads: “Simran Sainani Being a ex-banker myself I can vouch for the cause you are trying to raise here. Banks and companies have these policies because they don't consider the woman to be eligible for a loan but definitely want to make her liable to pay the loan in-case the partner fails. Such policies are downright discriminatory to women and policy makers need to open their eyes and stop living in 1900s.”