~Lending major witnesses 10X growth in travel loan applications and 6X growth in travel credit cards~
On World Tourism Day celebrated on September 27, IndiaLends—an online marketplace for loans and credit cards released a study which states that demand for travel loan has grown by 10X in the last one year. The study found that 36% of travel loan applications came from zillennials (aged between 21-26), while 52% came from millennials (27-40). The study also noted that the average ticket-size of travel loans has reduced from INR 95,000 to INR 75,000 indicating the loan applicants' planned approach towards their travel expenses.
The study conducted by IndiaLends covered both salaried and self-employed Indians across eight major cities—Mumbai, New Delhi, Bengaluru, Hyderabad, Pune, Chennai, Jaipur, and Kolkata. Out of the total loan applications received from these geographies, the maximum loan applications came from New Delhi (22%), followed by Mumbai (20%), Bengaluru (17%), Hyderabad (15%), Pune (13%), Chennai (8%), and Jaipur (5%).
The report also highlights that 27% of all travel loan applications came from women, as compared to 14% in other categories.
In addition to travel loans, IndiaLends also witnessed a 6X growth in travel credit cards. 75% of the travel credit cards issued through the platform in 2022 come with complimentary access to airport lounges, and over 30% with Travel specific offers. IndiaLends also reported Travel Offers being the 2nd most searched category after Electronics on it’s recently launched Brand Offers feature available on their Android App.
Gaurav Chopra, Founder & CEO, IndiaLends said, "We have seen a significant rise in travel loans and credit cards in recent months, even crossing the pre-pandemic level. With the festive holidays coming up, we expect this trend to continue. As life gets back to normalcy, we have observed a shift in young people’s spending pattern. Our members believe Travel is essential rather than aspirational. However, the average ticket-size of travel loans has decreased, indicating the youth’s smart financial planning."
"Travelling comes with a purpose for our customers, and an increased number of individuals are seeking travel for new experiences as opposed to R&R" said Ankit Khurana, Head of Brand and Marketing, IndiaLends. "Travel is now considered a means to personal growth, with a lifelong positive impact", he added.
Salaried individuals have outpaced self-employed in the travel loan segment, with over 72% availing them. The trend continues even in the travel credit card segment with salaried applicants commanding a 69% share.
IndiaLends is currently working with 60+ RBI Approved Partners, which include major PSUs and private sector banks, NBFCs, fintechs, and P2P lenders. The company also offers an open-API model for banks and NBFCs to partner with them through a plug-and-play approach. The company has over 13 million customers, with over 85% of them being millennials and zillennials. The company achieved its cash break even in March 2022.
IndiaLends is India’s leading online marketplace for Personal Loans, Credit Cards, Gold Loans, and Collateral-free Business Loans. Available on both the web and mobile, IndiaLends helps it’s members be proactive with their credit planning, and credit profile monitoring through a FREE credit report. IndiaLends is run by a team of credit risk professionals and data scientists with multiple years of experience in consumer credit. For further information, visit www.indialends.com.