World Tourism Day: Millennials not shying away from taking loans for travel

As many as 85 percent salaried and self-employed individuals who applied for travel loans ranging between Rs 30,000 to Rs 2.50 lakh were millennials, a study by IndiaLends has shown.

The study covered individuals from six major cities in India –Mumbai, New Delhi, Bengaluru, Hyderabad, Chennai and Kolkata, according to a report in The Economic Times.

Among these cities, Hyderabad clocked the most travel loan requests at 20 percent, followed by Mumbai at 19.7 percent and Bangalore with 19 percent.

However, a trend noticed with the generation known as Gen-Y is that they prefer new-age digital lending options against traditional banking systems. This works especially well for those with zero credit history and those who want to avoid the lengthy paperwork, it noted.

Among foreign destinations, countries such as Thailand, Dubai, Sri Lanka, Indonesia, Nepal, the Maldives, and Bhutan which allowed visa on arrival were the top choices. Also preferred were luxury stops in Europe, USA, South Africa, Australia, and New Zealand, it added.

Domestically, Goa, Rajasthan, Kerala and Ladakh scored in popularity.

The short-term, last-minute holiday plans seemed to be a major reason why most preferred accessible places and required easy financing. In many cases, the loan is a safety cushion to enhance the holiday experience, the report pointed out.