The next 3-6 months seem banking bright as 71% of Indians aim for personal loans

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A survey by IndiaLends showed that around 77% of Indians are hopeful about an economic rebound and business renaissance, and 27% expect that the turnaround could take place in the next three months. These are two of the observations that during the festive season caught the nation’s present mood.

The next 3-6 months seem banking bright as 71% of Indians aim for personal loans

The national survey conducted in November of almost 1,700 respondents, both salaried and self-employed, triggered other surprises: 22% of those polled said they expect a recovery in the next three to six months, while 28 % thought it might take anywhere from six months to a year, suggesting that the pandemic was still being weighed in.

Significantly, in the next three to six months, 71% of respondents said they intended to take out a personal loan. As the principal factors for personal loans, they cited two and four-wheelers, enterprise start-ups, household durables, electronic gadgets, and home renovation. At least 7% of respondents said they would choose a loan to pay for upskilling programs, which contributes to the work effect of Covid-19 and the desire to use spare time to learn new skills; while 31% of respondents said they would use the loan to launch their own business.

Gaurav Chopra, Founder, and CEO of IndiaLends said “The economy is recovering from the coronavirus pandemic slowly but steadily and is getting back on the growth path.  There are strong signals of a business revival and customer confidence. This is apparent in the spike in loan applications from businesses such as MSMEs and people, including millennials, as well as the many reasons why they are taking out those loans. Our latest survey indicates that corporations and individuals are intent on returning to a ‘new normal’ life and beginning on a good note in 2021.”

Nearly 46% of respondents said they anticipated a rise in household spending on consumer durables such as washing machines and dishwashers, among other results, and 11% said they would opt for a personal loan to purchase these appliances. Almost 38% of respondents have said that they would consider having their home renovated in the coming months with people spending more time at home, and 15% said they would take a loan for the same.

About 70% of respondents said they were now spending more on technological devices for their children, including smartphones, tablets, and laptops, due to the closure of schools, colleges, and several offices since March 2020 and the consequent rise in home-based online schooling and work from home.

Not unexpectedly, wedding and travel costs saw a percentage decline, giving further impetus to the notion of millennials in the near future considering low-key weddings and budget-friendly travel choices.

In the 18-55 + age group, living in top Tier I and II cities, the IndiaLends survey included all salaried and self-employed Indians. In the 25-35 age range, the respondents consisted of 41% of millennials, thereby making it extremely youth-centered.

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