Loans For Smartphones, Laptops Increase By 108% In India; Women Are Taking More Loans Than Men!
We have come up with a very extraordinary survey report today, provided by IndiaLends. Just some days back we’d presented a customer survey report to you, about the shopping sentiments and shift in mindsets of consumers this festive season so that retailers could get more consumer-centric during the most crucial quarter of the year.
Now that Diwali’s done with, we bring another one of such survey reports to you, which shall illustratively paint a picture of how millennial these days spend and apply for loans during festival seasons. This report will embody the true meaning of the philosophy ‘Work hard and Play hard’, which mainly defines the millennial generation.
There were some significant findings on loan trends among Indian millennial conducted by IndiaLends.
Loan Applications Spike up by 103%
Like we said, in this survey report devised by IndiaLends, it can be witnessed that this Diwali season, loan applications have seen highest recruiters, especially the gadgets and electronics section.
- This section alone has seen a spike of 103% in 2019 as compared to 2018.
- Personal loans have seen a 48% rise for home renovation.
- Wedding funding loans too rose by 46%.
No doubt, Diwali is considered to be an auspicious occasion for shopping, gifting as well as home renovation as it is a symbol of peace and prosperity.
Funding for Business Highest in Mumbai
Not just personal loans, people saw Diwali season as a great time to take up fundings for their businesses too. A staggering 95% increase was observed in loan applications for funding of business. In this sector, Mumbai witnessed the highest growth of 137%, followed by NCR with 113% and Bangalore which witnessed 80% increase.
Also, Tier 2 cities witnessed a 43% increase in the applications for travel loans, followed by a spike of 42% in debt consolidation in 2019 as compared to 2018.
This study was conducted among Indian millennial across six major metro cities, Mumbai, NCR, Bangalore, Hyderabad, Chennai and Kolkata along with 6 Tier 2 cities, Jaipur, Ahmedabad, Lucknow, Indore, Chandigarh and Vizag.
All in all, 12,391 respondents were evaluated for their loan requirements in eight main categories:
- Funding Business
- Debt Consolidation
- Home Renovation
- Gadgets or Electronics
- Unexpected Expenses.
That is Not All
IndiaLends has surely covered a huge spectrum of sectors in its survey to prepare this report. If you thought it was limited only upto the loan application capabilities and behavior of millennial, you have more to witness.
- 50% increase in loan applications by women in Bangalore, followed by 48% rise in women applications for loan in Mumbai, both increasing compared to 2018.
- The loan ticket size range was between Rs 17,000 to Rs 15,00,000 for funding businesses.
- This loan ticket size for home improvement cost varied between Rs 40,000 to Rs 28,00,000.
- Loan ticket size for weddings ranged between Rs 20,000 to Rs 29, 00,000.
- Loans for unexpected expenses like medical emergencies was in the range of Rs 38,000 to Rs 34,00,000.
- The highest change in loan applications for weddings was witnessed by NCR , which was 98% compared to 2018.
- Bangalore recorded the highest change in applications in travel loans, marking 64%.
- Mumbai witnessed a change of 105% in loan applications for home renovations, while NCR recorded the highest change in loan applications for gadgets and electronics being 286%.
The Purpose of the Survey
This survey conducted by IndiaLends was an attempt to understand and assess how millennial spend during the festive period of Diwali. A major highlight in the findings of the survey was the fact that in terms of loans and expenditures, millennial from Tier 2 cities aren’t much different from their metro counterparts.
An increase in loans for businesses and debt consolidation shows how financially conscious and aware today’s generation has become. On similar lines, IndiaLends is India’s leading provider of personal loans and credit cards, providing instant loans to its customers with most products being fully digital. They also provide data and credit analytics solutions along with a loan management platform to financial institutions.