NEW DELHI: The demand for marriage loans was highest among all categories at 33% in the second wave of the covid-19 pandemic against 22% in the first wave, according to a study conducted by IndiaLends, a platform for digital loan, among people aged 20 to 35.
According to the digital lending platform, this increase in marriage loan applications was due to a one-year delay in their wedding plans caused by the pandemic.
Likewise, business loans also increased from 16% to 23% during the second wave. Notably, household loans have declined from 40% to 24% over the same period.
IndiaLends conducted the study on loan trends among Indian youth on the occasion of International Youth Day.
The study was conducted among young employed and self-employed Indians in nine major cities – Mumbai, New Delhi, Bengaluru, Hyderabad, Chennai, Kolkata, Jaipur, Ahmedabad and Pune from August 2020 to March 2021 and from April 2021 to July 2021.
A total of 11,000 respondents were assessed for their loan needs in nine main categories, namely marriage, business, education, travel, household, medical, two-wheelers and debt consolidation.
“We are delighted to see a continued change in the behavior and mindset of young people over the past 17 months of the pandemic. Indian youth have shown themselves capable of adapting to changing circumstances. They are now better prepared to meet their financial needs and gradually become steeped in financial discipline. Their adaptability quotient puts them ahead of their previous generation, ”said Gaurav Chopra, Founder and CEO of IndiaLends.
The survey also found that 10% of marriage and business requests came from female borrowers.
Meanwhile, loan requests for household spending saw a decline in the second wave, suggesting that young people are now better prepared to meet financial needs.
The average size of the marriage loan tickets was ??4.13 lakh, follow-up of medical expenses ??4 lakh, household expenses ??3.43 lakh and for business ??2.62 lakh.
IndiaLends received around 56% of loan applications from Tier 2 cities during the first and second waves of the pandemic.
“Among other things, requests for education, car and motorbike loans, travel loans, etc. were almost similar in both the first and second waves. Medical loan applications spiked small in Wave 2 due to the gravity of the situation and the impact it had on the health of most of the population, ”the loan platform said. in a press release.
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