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71% Indians to seek a personal loan

A survey by IndiaLends indicates an uptick in loan applications from MSMEs and individuals, including millennials:

IndiaLends, an online marketplace for credit products and insurance, recently carried out a survey, covering both salaried and self-employed Indians in the 18-55+ age group, residing across top tier 1 & 2 cities. Nearly 41% of the respondents were millennials in the 25-35 age group, thus making the survey highly youth-centric. 

The survey has revealed that 77% of Indians are optimistic of an economic recovery and business revival and 27% believe the turnaround could happen in the next 3 months. These were 2 of the several findings that captured the mood of the nation during the festive season.

The nationwide survey covered nearly 1700 respondents and was conducted in November 2020. There are other surprises: 22% of those surveyed said they expect a revival in the next 3-6 months, while 28% felt it could take anywhere between 6-12 months, an indication that people were still weighing in on the pandemic.

71% PLAN PERSONAL LOANS 

Significantly, 71% of the respondents in the survey said they planned to take a personal loan in the next 3-6 months. They cited buying 2- and 4-wheelers and funding business startups, household durables, electronic gadgets, and home renovation as the main reasons for the availing of personal loans. At least 7% of the respondents said they would opt for a loan to pay for upskilling courses, which points to the impact of covid on jobs and the need to utilize the free time to acquire new skills; 31% of those surveyed said they would use the loan to start their own businesses.

LOAN APPLICATIONS UP

Gaurav Chopra – Founder & CEO, IndiaLends

IndiaLends recently launched Digital Lending 2.0, a range of touchless and contactless products that include loans, insurance, and a line of credit. Available on both the web and mobile, IndiaLends offers instant loans to its customers with most products being fully digital. Gaurav Chopra, Founder & CEO, says: “The economy is slowly but steadily recovering from the pandemic and is getting back on the growth trajectory. There are clear signs of a business revival and consumer confidence. This is evident in the uptick in loan applications from enterprises such as MSMEs as well as individuals, including millennials, and the many reasons they are taking those loans. Our survey reveals that businesses and individuals are keen to return to a ‘new normal life and start 2021 on a positive note.”

CONSUMER DURABLES’ DEMAND

Among other findings, nearly 46% of the respondents have said they expected an increase in household expenses towards consumer durables such as washing machines and dishwashers, and 11% said they would opt for a personal loan to buy these appliances. With people spending more time at home, almost 38% of the respondents also said that they would consider getting their home renovated in the coming months, and 15% said they would take a loan for the same.

ELECTRONIC GADGETS

Following the closure of schools, colleges, and many offices since March 2020 and the consequent increase in home-based online education and work from home, some 70% of the respondents said they were now spending more on electronic gadgets for their children, namely smartphones, tablets, and laptops.

Not surprisingly, the study found that there is a dip in expenses on account of weddings as well as travel, providing further impetus to the idea of millennials considering low-key weddings and budget-friendly travel options in the near future.

IndiaLends, run by a team of credit risk professionals and data scientists with multiple years of experience in consumer credit, also provides technology, data, and credit analytics solutions along with a loan management platform to financial institutions. The firm also offers free credit reports. It has a customer base of 8 million.


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