New Delhi, November 15: An individual’s credit history is no more the only criteria to obtain loans from banks and financial institutions. Technology has enabled fintech companies to directly connect borrowers with lenders, providing an alternative to get loans even if burrowers don’t have a credit history. And, mobile solutions only strengthen the advantages, with millennials banking on every opportunity.
According to a recent survey by an app-based lending platform CASHe, 31 per cent of millennial Indians in 2018 sought loans for medical purposes, 23 per cent for EMI financing, 22 per cent for shopping, 14 per cent for loan repayment, and 10 per cent for travel. Bengaluru
Mumbai, Hyderabad, Delhi, Chennai, Kolkata emerged as top metros where millennials demand credit.
While 36 per cent of millennials who have used the platform to borrow loans are of the 31 to 36 years age-group, 64 per cent are aged between 21 and 30 years. Of these, 91 per cent were male and only nine per cent were female, the survey noted.
Among the millennials taking loans, 41 per cent were earning a monthly income between Rs 15,000 to Rs 25,000, while 42 per cent were earning between Rs 26,000 to Rs 50,000, 14 per cent were earning between Rs 51,000 to Rs 100,00, and only 3 per cent were earning more than Rs 100,000.
The lending platform — which evaluates borrower’s media footprint, education, remuneration, and financial history from their smartphones to calculate his or her willingness and ability to repay the loan — provides short-term unsecured loans. Majority of millennials mostly chose one month or less time frame to repay the loan, while 29 per cent chose three months, and 14 per cent for six months, the survey noted.
Interestingly, Christmas emerged as the top occasion when millennials borrowed the most, followed by New Year, Diwali, Rakhi, Eid, and Holi.
