Indian millennials are funding a lot of their lifestyle needs by borrowing money. For instance, according to digital lending platform, IndiaLends, has reported a 55 percent growth in personal loans for travelpurposes. More interestingly, 85 percent of these loan seekers are millennials, who are seeking personal loans in the range of Rs 30,000 to Rs 2. 5 lakh.
By the looks of it, for a whole new generation of young salaried and tech-savvy professionals in the country, the idea of approaching traditional banks often seems unappealing.
Why they are taking loans from a digital lending platform?
Obtaining loans from banks can be a long and lengthy process. On the other hand, the digital lending space has enabled easier access to loans, even to new-to-credit salaried individuals with zero credit history, said a press release by IndiaLends. Gaurav Chopra, Founder & CEO, IndiaLends said, “The emergence of ‘leisure consciousness across India’s younger generation and the realisation that a balanced lifestyle is important, has led to increasing in domestic as well as international travel.”
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Why personal loan?
The new generation of young Indians is now planning a holiday loan, just the way one plans investments, said IndiaLends. “There has been a shift in the younger generation in terms of financial planning. Not just those who don’t have enough savings, but also those who want better travel experiences or wish to visit finer destinations are opting for loans. This also indicates the popularity of digital lending which is growing substantially in India. For a new generation customer, the ease of services is one of the important criteria for choosing the servicing company”, he further added.
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Where are borrowers travelling?
As per IndiaLends data, borrowers usually opt for countries offering visa on arrivals, since most millennials take loans for last-minute holiday plans.
These include countries like Thailand, Dubai, Sri Lanka, Indonesia, Nepal, Maldives and Bhutan. Not all millenials want to holiday on a budget; there are some who take loans for luxury travel as well. These customers take loans for luxury holidays to Europe, USA, South Africa, Australia and New Zealand.