Millennials took to digital loans in 2020 to meet their emergency fund needs like medical bills and credit refinancing. This is a trend that we had not seen in previous years.
There has also been an increase in demand for home improvement loans after the foreclosure, according to a report from CASHe, a digital lending platform.
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“A year ago, millennials were more geared towards sustainable consumer purchasing,” said the Millennial Loan-o-Nomics report, which analyzed an active pool of over 4 lakh loan applications.
As the new situation arose due to the pandemic, the borrowing behavior of millennials changed from previous years. As many jobs lost or employers cut their wages, 16% of millennials resorted to loans for credit refinancing.
Those between 30 and 40 years old accounted for about 51% of the loans taken out. Most borrowers (41%) in 2020 were those who earned between ??10,000 and 25,000 rupees. A year earlier, those with incomes between ??25,000 and ??50,000 have taken out most of the loans.
Loan demand was highest, at 81%, from earning millennials ??10,000– ??50,000, and 76% preferred low cost loans ranging from ??10,000 and ??50,000
The survey also compared Android to Apple phone users. Of the total loans disbursed, 90% were used by Android users. Most of them used Samsung, Xiaomi and Vivo smartphones.
Among the cities, most applications came from Bengaluru, followed by Hyderabad, Chennai, Mumbai, Pune, Gurugram and Kolkata.
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