In the last year, many cities have seen an increase in personal loan even though it’s a tier1 or tier 2 cities. Starting a business needs investment. In the last year, around 25% had applied for a personal loan to start their business. Eighteen per cent of people had applied for the loan for their medical expenses. Seventeen per cent of the people had applied for the loan for buying any vehicles.
The new-age digital lending platform had provided the above information on how many people are taking the loan for what. There are different age group of people using these loans. In tier 1 and 2 cities, there are around 1,50,000 borrowers in the age group of 21-55 years. Loan taking was from the duration 25th march 2020 to 20th March 2021.
Not only from tier 1 cities, but people are also taking loans from the tier 2 cities. These days the loan applications are increased. The reports which we found are:
In the loan application, the maximum number of people is in the age group of 25-25 years. The loan takers are both male and female, taking the loan from 10,000 to 50,00,000.
- Nowadays younger people are going with the travel options which are not that much costly.
- Tier 2 cities have seen an increase in loans, and it is around 54%. While from the tier 1 cities it is 46%. The tier 2 cities include Coimbatore, Lucknow, Kochi and many more.
- In cities like Hyderabad, around 20% of the people opted for the loan for medical expenses. For courses, it is around 15 per cent.
- In cities like Chennai, people opted for a personal loan is 19 per cent for buying vehicles. And 17 per cent is for buying electronic items.
- In cities like Bangalore, 28 per cent of the loans have opted for electronic items, and 12 per cent of the loans improve their skills by enrolling on some paid courses.
- In cities like Delhi, 31 per cent of the loans are opted to buy household electronic items. And 25 per cent of loans are for medical expenses.
- In cities like Mumbai, 25 per cent of the loan are opted for starting the business, and 15 per cent of the loan is for buying electronic items.
Some of the personal loans opted in the various tier 1 and tier 2 cities last year.