In Mumbai, 27% of the borrowers opted for a private loan to start out their personal busines.
Around 25 per cent of borrowers opted for a private loan to start out their personal enterprise, even though 18 per cent of borrowers opted for a loan to handle their healthcare costs and 17 per cent of borrowers opted for a loan to either purchase a 2-wheeler or 4-wheeler car, largely due to Covid-19 pandemic and the resultant social and financial effect.
These had been some of the important findings of the Borrower Pulse Report by IndiaLends — a new-age digital lending platform to have an understanding of the borrower sentiments considering that the nation went into lockdown a year ago. The nationwide study was based on information collected from more than 1,50,000 borrowers belonging to the age group of 21-55 years, from Tier 1 and 2 cities, through the period 25th March 2020 to 20th March 2021.
While Delhi NCR saw the maximum quantity of loan applications, there has also been a 38% boost in loan applications from Tier 2 cities. Due to a decline in luxury expenditure, loan applications from Tier 1 cities saw a muted demand.
Some of the other important findings of the report had been:
In Mumbai, 27% of the borrowers opted for a private loan to start out their personal enterprise even though 15% of borrowers opted for a loan to acquire electronic gadgets like laptops, tablets and so forth. provided the shift to a remote working culture
Delhi witnessed 31% of loan applications for the acquire of household durables like washing machine and dishwasher even though 25% of applications had been for healthcare costs owing to the pandemic
28% of loan applications received in Bengaluru had been for the acquire of electronic gadgets, followed by 12% applications had been for upskilling courses which point out to the reality that a lot of men and women utilised their absolutely free time to upskill or upgrade themselves
In Chennai, 19% of loan applications had been for getting 2-wheeler or 4-wheeler cars even though 17% of borrowers opted for loans to acquire electronic gadgets like Smart TVs, laptops and so forth.
In Hyderabad, 20% borrowers opted for private loans to cover their healthcare costs whereas 15% of the loan applications had been for upskilling courses
Interestingly, Tier-2 cities consisted of 54% loan applications as compared to 46% from Tier 1 cities. The tier2 cities with maximum loan applications had been Coimbatore, Chandigarh, Lucknow, Indore and Kochi.
Among other essential findings of the survey, wedding and travel costs saw a dip in percentage, therefore confirming the reality that the younger population is now taking into consideration low-essential weddings and spending budget-friendly travel solutions.
Almost 52% of borrowers in the study had been in the age group of 25-35 years, therefore creating it a millennial centric report. The report constituted of each male and female borrowers, who had been looking for loans ranging from Rs 10,000 to Rs 50,00,000.