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Millennials take loans worth Rs 30,000-2.5 lakh for travel: Report

IndiaLends reported a 55 percent growth in personal loans for travel purposes.

May 19, 2020 / 09:43 PM IST

Millennials are drawing personal loans from Rs 30,000 to Rs 2.5 lakh for travel purposes, according to a report by digital lending platform IndiaLends.

85 percent of those who seek loans for travel are millenials, the report said.

The company reported a 55 percent growth in personal loans for travel purposes.

"The emergence of 'leisure consciousness across India's younger generation and the realisation that a balanced lifestyle is important, has led to increasing in domestic as well as international travel." IndiaLends CEO Gaurav Chopra said in a statement.

Millenials typically prefer countries that have visa on arrival for Indian citizens, since they tend to make plans at the last minute. Countries such as Thailand, Nepal, Bhutan and Sri Lanka offer visa on arrival to India citizens.

There are also those who take luxury vacations to countries such as Europe, USA, South Africa, Australia and New Zealand.

For young, salaried individuals who lack credit history, availing loans from the digital lending space is easier than approaching banks.

The process of getting a loan from a bank can be lengthy and tedious, which makes it a less attractive option for young professionals.

"For a new generation customer, the ease of services is one of the important criteria for choosing the servicing company," Chopra added.

Indians are increasingly spending more time and money on travel. Dutch travel firm has said India is one of its top five markets.

Social status and relaxation are some of the major reasons Indians travel, according TO a report.

Moneycontrol News
first published: Feb 12, 2020 10:19 am