Denjiro Yonemura demonstrates his "hand power".

`As we live in a time when we can borrow or spend money without thinking too much about it, we need to be aware of our invisible purse, or we will be in real trouble.' YUKO ODA Author

With movie theaters offering ``ladies day'' discounts, railway companies providing train cars exclusively for women and hospitals offering sections that treat only female outpatients, women consumers are being wooed like never before.

But while the fairer sex has always used theaters, trains and hospitals, one industry that's getting in on the act offers services that, until relatively recently, many women wouldn't have touched with a barge pole.

Using advertising slogans such as ``We'd like to fulfill the wishes of women'' and English words like ``Olive'' and ``Wing''-reminiscent of beauty salon names to the Japanese female ear-consumer finance companies are going all out to lure women into taking out loans. Comic books and weekly magazines for women are packed with these advertisements for so-called ladies loans, or loans exclusive to women.

Despite the ads' pleasant phrasing, the companies that place them are consumer finance firms-once known as sarakin, a short form of ``salaried-workers' finance''-which had a reputation for exorbitant interest rates and heavy-handed collection methods.

To find out about ``ladies loans,'' I recently visited branches of consumer finance firms in Tokyo's Shinbashi area. But none of the counters in the outlets seemed to handle the product. A clerk at one said these loans are not handled at counters, but over the phone and via the Internet. This is, in fact, the most unusual feature of the product-being able to borrow money by just calling or going online. This feature, too, is geared toward female customers, as most women wouldn't want to stand at a counter at a consumer finance firm or even visit such companies' automatic loan-application booths on street corners.

So I called a medium-sized consumer loan company.

``Thank you very much for calling. If this is your first time, please don't worry,'' a cheerful woman's voice reassured me. The way she spoke was reminiscent of TV commercials for loan companies in which a young female showbiz personality smiles at you.

Pretending to be a prospective customer, I asked some questions. ``I can't help but think of the scary image consumer finance firms have,'' I said. ``You wouldn't threaten me by demanding that I sell my kidney, would you?''

``Of course not,'' the woman replied. ``Our company is listed on the first section of the stock market. We would never do anything so disgraceful. We would inform you, of course, if you were late with your repayments. As some people simply forget what they owe, we would just let you know. We wouldn't visit your home unless your repayments were long overdue.''

I pretended to be concerned that if I borrowed money, I wouldn't be able to keep the loan secret from my family and coworkers.

``We don't reveal our company name when we call,'' the woman said. ``And we don't print our name on the letters we send. The letters just look like those from your friends. Our loan card has a cute design for women.''

When the woman had answered my queries, it was her turn to ask questions. I was asked for my name, address and working hours and for details of when I'd moved house and of my family members. She also requested that I produce a copy of my driver's license and health insurance card and details of my bank account and salary. This information would be necessary to check my credit record, she said. If everything was in order, the money would be transferred to my bank account by the end of that day. I could also make my loan payments through a bank. In either case, there would be no need for me to visit one of the firm's branches.

Once you've borrowed money from this company, you receive a card that allows you to draw cash from ATMs set up by loan and credit companies on streets or at convenience stores. This allows women greater anonymity as opposed to ``sarakin'' that require borrowers to show up at their office in person to get a loan.

Some of these loan companies are also tying-up with well-known international credit company MasterCard to give their product a greater cachet with women.

``This allows you to borrow money without feeling any sense of shame at borrowing from a consumer finance firm. It makes it easier for women, who are more concerned about appearances than men, to borrow money from consumer finance firms,'' says Yuko Oda, author of a book advising women how to deal with their personal finances and a former consumer finance company employee.

The amount of outstanding loans reached a peak 10 years ago of more than 80 trillion yen, according to a report on the money-lending industry. But the recession helped reduce that amount to about 43 trillion yen in 2002, and the number of companies offering loans declined from 8,000 to 6,000.

So why are such firms emphasizing loans for women now?

CFJ President Stephen Bird, whose company belongs to Citigroup and offers ``Unimat Ladies'' loans, cites the rise in the number of single working women.

``In recent years, there have been more single women whose lifestyles are financially independent. But there's a lack of services that meet their needs,'' he says. ``We'd like to offer an option that helps them enrich their lives by enabling them to start a training course, enjoy a trip abroad or purchase something a little more expensive than what they would usually buy.''

Like those in the United States and Europe, Japanese consumers have gotten used to using credit cards when making purchases in stores or online. This change in shopping practices has also prompted businesses to target female customers.

In addition, loan companies are finding that women are often more trustworthy and honest than men and that they are therefore more likely to keep up with their repayments than male borrowers, who tend to use the money for gambling. However, women usually borrow less than men.

The recent tendency for women to work part time rather than full time has also contributed to the surge in loans for women, as they do not receive bonuses.

Another feature of ``ladies loans'' is that they are offered by small and midsized consumer loan firms rather than by the large companies whose commercials are often seen on TV.

``This is because small and midsized companies have to do something different to survive in the severe business environment that has arisen as a result of such factors as the recession and legal reinforcement of the consumer finance industry,'' says a spokesperson for the Federation of Moneylenders Association of Japan.

The top five companies in the industry-Acom Co., Takefuji Corp., Aiful Co., Promise Co. and Sanyo Shinpan Finance Co.-plus two foreign firms, CFJ and GE Consumer Finance, account for about 70 percent of the total outstanding loans. It is difficult for small and midsized companies to win a big share of the market. Changes in the Capital Subscription Law four years ago, cutting the maximum chargeable interest rate from 40 percent to 29.2 percent, dealt a severe blow to smaller firms as they can no longer target high-risk, high-return customers that large companies tend to avoid. Thus, they have shifted their focus to women, according to industry sources.

However, it isn't that large companies are ignoring women as prospective customers. Aiful's TV commercials featuring cute chihuahuas are aimed at attracting women. But although the company has been inundated with calls since the ads were first shown, many have been from people asking what kind of chihuahua is used and where it's possible to buy one.

Acom tried a different tack, opening an outlet exclusive to female customers. Exquisitely furnished, it boasted imported Italian chairs that cost 200,000 yen each. But it also failed to increase the number of female customers.

Promise has created a product that provides loans in dollars for women to use on trips abroad, but sales of the product have been less than anticipated.

In fact, female customers account for only 30 percent of all borrowers and the share remains unchanged from 10 years ago despite the recent media focus on loans for women.

Most women recoil when they hear the name of a consumer finance company, says Yoichiro Murayama, a spokesman for Acom. The names of large loan companies are well-known as being those of lenders. Small and midsized companies have some advantages in this respect because their names are not so easily recognized. Large companies are therefore starting to promote their loan cards in conjunction with cards offered by cosmetics and underwear firms.

Aiful has tied up with ``Listen!Woman,'' a Web site targeting young women that has issued its own card. The site is supported by lingerie maker Triumph International, Kinki Nippon Tourist and others. This allows individuals who would prefer not to be seen using an Aiful card to borrow borrow money if the need arises.

Large companies appear to have changed their marketing strategy from directly attracting female customers to making women feel closer to consumer finance firms. This strategy is being seen in the joint ventures they have recently formed with major banks.

Tomomi Hagiwara (not her real name), 25, who lives alone in Tokyo, is typical of the kind of women who take out loans. She works as a beautician and earns about 200,000 yen a month. As her monthly rent is 60,000 yen, she has to live rather humbly. But she cannot help spending money shopping and often buys dinner for younger employees at the salon where she works. She recently spent more than 100,000 yen on a pair of hairdressing scissors without batting an eyelash. Her spending is supported by credit cards and ``ladies loans.'' She pays back about 60,000 yen a month. She has never missed a payment, even when that has meant taking up a temporary job on the weekends.

But this is not the case for every borrower. About 240,000 people filed for personal bankruptcy last year.

Author Oda warns, ``As we live in a time when we can borrow or spend money without thinking too much about it, we need to be aware of our invisible purse, or we will be in real trouble.'' A variety of services

Consumer finance companies offer a number of products and services exclusively for women. Some of them are: Tie-ups with other cards

Last month, Aiful joined forces with Web site Listen!Woman, which has issued a multi-purpose card for women. The card is supported by Triumph, the Venus Fort shopping mall and Kinki Nippon Tourist and others.

Some consumer loan firms have also joined hands with sports clubs and cosmetics companies. A `health' card

Promise's ``Pulse Card'' for female customers has a low-wave function built in. Carrying the card is said to help the circulation and so prevent stiffness in the shoulders. Using it as a coaster, Promise says, improves water quality. Loans in dollars for trips abroad

Promise also lends money in dollars to women who travel abroad. Repayments are made in yen. The annual interest rate is set at 14.6 percent, which is lower than for other products, and repayments are adjusted if the yen falls against the dollar. Low-interest loans for special needs

Unimat Ladies provides women with low-interest loans for specific occasions or needs, such as marriage, having a baby, school fees, home improvements and buying pets. The maximum interest rate is set at 24.88 percent, compared with 29.2 percent for other loans. Rice voucher for first-time borrowers

First-time borrowers receive a voucher for 5 kilograms of rice when they take out a loan offered by Tokyo-based Himawari Club.(IHT/Asahi: October 16,2004) (10/16)