Gadgets see 132% rise in loan applications in Hyderabad

Hyderabad: This Diwali, Lifestyle spends have seen the highest growth in loan applications among metro cities where in loans for gadgets and electronics have seen a spike of 103% in 2019 as compared to 2018; while there has been a rise of 48% for personal loan applications for home renovation or improvement; loans for funding weddings saw an increase of 46%. All these can be attributed to the fact that 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.

A staggering 95% increase was observed in loan applications for funding of business, where in Mumbai witnessed the highest growth followed by NCR and Bangalore with 137%, 113% and 80% increase respectively. Tier 2 cities also saw a 43% increase in the applications for travel loans, followed by a spike of 42% in debt consolidation in 2019 as compared to 2018.

These were some of the significant findings of a new survey on loan trends among Indian millennials conducted by IndiaLends — a new-age digital lending platform around the festive season.

The study was conducted among Indian millennials across six major metro cities — Mumbai, NCR, Bangalore, Hyderabad, Chennai, and Kolkata as well as six Tier 2 cities including Jaipur, Ahmedabad, Lucknow, Indore, Chandigarh and Vizag. In all, 12,391 respondents were evaluated for their loan requirements in eight main categories, namely Wedding, Funding Business, Education, Travel, Debt Consolidation, Home Renovation, Gadgets or Electronics and Unexpected Expenses.

IndiaLends CEO Gaurav Chopra said an increase in the applications for business purpose and debt consolidation proves how financially conscious and aware they have become. We have been constantly working towards helping our customers have a healthy credit behaviour and we can say that our customers are now financially more prudent and are taking better financial decisions. The findings of the survey have helped us recognize that while we have made significant progress in that direction, there is still more work to do."