Business

Medical expenses, consumer durable purchases led millennial borrowings in 2019

Updated : January 21, 2020 02:38 PM IST

According to the report, most millennials prefer to move out of their parents' place thus embarking on a journey of financial independence.

Small, personal loans are tailored to meet millennials' needs which include expensive accommodation, higher education, travel, etc.

Medical expenses and consumer durable purchases topped the chart of millennial borrowings in 2019, according to CASHe report. These requirements led to them availing digital loans all through 2019. They were closely followed by loan foreclosure and holidays, the report added.

CASHe, which specifically caters to the millennial segment of the population, undertakes customer data analysis on an annual basis.

According to the report, most millennials prefer to move out of their parents' place thus embarking on a journey of financial independence. Small, personal loans are tailored to meet millennials' needs which include expensive accommodation, higher education, travel, etc.

Digital lending with shorter lock-in periods is a saviour for millennials, especially for those with inadequate or zero credit history, CASHe said.

Emergencies like unforeseen medical expenses were the reasons why 37 percent of millennial customers resorted to lending in 2019 — a sharp increase from 31 percent last year, the report showed. While ‘emergencies’ accounted for approximately 57 percent of the borrowing, ‘aspirations’ accounted for 43 percent.

Surprisingly, only 10 percent of the borrowers were women.

Hyderabad soared ahead in terms of millennial credit demand compared to the previous year, ranking second after Bengaluru, followed by other cities such as Delhi, Pune, Mumbai, Chennai, Jaipur and Ahmedabad.

In terms of loan size, a majority of millennials preferred small ticket loans of under Rs 10,000. UPI and NEFT topped as the most preferred medium of repayment.

78 percent of millennial chose to apply for loans during weekdays, especially on Tuesdays and Thursdays. 12 pm to 4 pm was recorded as the most preferred time to apply for a loan. 5 am to 6 am was registered as the most preferred time when millennial chose to repay loans, according to the CASHe report.

Medical expenses, consumer durable purchases led millennial borrowings in 2019

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