The digital lender sees 55% rise in loan applications.
Digital lending platform IndiaLends has reported a 55 per cent growth in personal loans for travel purposes. More so, 85 per cent of these loan seekers are millennials, who are seeking loans in the range from ₹30,000 to ₹2,50,000.
“A lot these travel plans are result of long weekends and last-minute holiday planning, which require quick accessible financing option,” said IndiaLends in a report.
It said that the growth of digital loans for travel is aided by a new generation of young, salaried and tech-savvy professionals in the country, who find the idea of approaching traditional banks quite unappealing, as it can be really long and lengthy process. “The online lending space has enabled easier access to loans, even to new-to-credit salaried individuals with zero credit history,” it added.
Gaurav Chopra, Founder & CEO, IndiaLends, said, “The emergence of ‘leisure consciousness’ across India’s younger generation and the realization that a balanced lifestyle is important, has led to an increase in domestic as well as international travel.”
“A growing number of millennials are taking personal loans to satisfy their wanderlust. In many cases, the loan amount is a safety cushion that enhances the full experience of a destination,” he said, adding that the new generation of young Indians are now planning holiday loan, just the way one plans investments.
“There has been a shift in the younger generation in terms of financial planning. Not just those who don’t have enough savings, but also those who want better travel experiences, or wish to visit finer destinations are opting for loans. This also indicates the popularity of digital lending which is growing substantially in India. For a new generation customer, the ease of services is one of the important criteria for choosing the servicing company,” he added.
As per IndiaLends data, borrowers usually opt for countries offering visa on arrival, since most millennials take loans for last-minute holiday plans.
These include countries like Thailand, Dubai, Sri Lanka, Indonesia, Nepal, Maldives and Bhutan. On the other hand, they also have customers taking loans for luxury holidays to Europe, USA, South Africa, Australia and New Zealand.