Friday, October 8, 2021

65% Of Indians Plan To Take Personal Loan Ahead Of The Festive Season: IndiaLends – E-Cell, IIM Kozhikode Study


* Despite lockdown like restrictions, 62% of women are not willing to compromise from buying luxury goods

Major digital lending platform, IndiaLends and the Entrepreneurship and Innovation Cell (E-Cell) of the leading education institute, Indian Institute of Management, Kozhikode, launched ‘Indian Borrowers’ Sentiment Report’ which understands the pulse of the borrowers post the second wave of Covid-19. According to the survey, around 65% of Indians plan to take personal loan ahead of the festive season. 52% of Bengaluru-ites have checked their credit score since April 2021 and 60% of them might apply for a personal loan in the immediate future

The nationwide survey, conducted among approximately 1400 respondents comprising of both salaried and self-employed participants, showcased several interesting data points. As per the report, finances of about 66% of zillennials, between the age group of 21-25 years, have been impacted by the second wave of Covid while finances of about 75% of baby boomers (age 60 years and above) had no impact. The second wave of pandemic was more challenging for 53% self-employed class as compared to 46% of salaried class. Furthermore 61% of females have cut down on their spends on apparels and accessories going forward whereas 62% of them are not willing to compromise from buying luxury goods.

Significantly, 81% of millennials between the age group of 25-35 years plan to apply for a personal loan in the immediate future largely for education purpose, followed by debt consolidation, wedding, etc. Over 27% of respondents plan to apply for a personal loan to meet the needs of their medical expenses. About 18% of respondents plan to apply for a personal loan to meet the expenses of their wedding.

IndiaLends Founder and CEO Gaurav Chopra said, “The economy is gradually coming back to its feet post the second wave of Covid on the back of a massive inoculation drive initiated by the government of India. We are witnessing a steady process of business revival which has also helped to boost consumer confidence. With about 65% of Indians planning to opt for a personal loan in the immediate future, there is a clear indication of pent-up demand for credit products and overall optimism among customers. Our latest study with E-Cell, IIM Kozhikode reveals that businesses and individuals are keen to return to a ‘new normal’ life with the upcoming festive season.”

Among other findings, 34% of self-employed borrowers and 25% of salaried class borrowers stated that government’s last year’s moratorium was a great relief. About 79% of males and 72% of females have said their expenses towards holiday has seen a decline. Nearly, 85% of males are concerned about their savings for future and 66% of females are cutting back on their spending.

The IndiaLends – E-Cell, IIM Kozhikode survey covered both salaried and self-employed Indians in the 21-60+ years age group, residing across top metro and non-metro cities. The respondents comprised 49% of millennials in the 25-35 years age group, 39% of zillennials in the 21-25 years age group.

About IndiaLends

IndiaLends is an online marketplace for credit products, insurance and offer free credit reports. 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. IndiaLends also provides technology, data and credit analytics solutions along with a loan management platform to financial institutions. IndiaLends is run by a team of credit risk professionals and data scientists with multiple years of experience in consumer credit. IndiaLends has a customer base of 8M. For further information, please visit www.indialends.com.

About E-Cell, IIM Kozhikode

Truly capturing the essence of a Business School, the Entrepreneurship and Innovation Cell is a catalyst to developing the business orientation of the students at IIM Kozhikode, which is an autonomous public business school located in Calicut (Kozhikode), Kerala. The interactive, learning yet enticing activities scheduled by the Committee are instrumental to linking developing business minds with the reality of the current world of business.

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