Ahmedabad, 9 April 2021
In Ahmedabad, 32 percent people have taken loans to start their own business at interest, while 32 percent applications for loans were made to buy household items such as refrigerators, washing machines etc. 12 percent of borrowers took a personal loan to buy a 2-wheeler or 4-wheeler vehicle.
Since the nationwide lockout a year ago, the Borrower Pulse report of Indianland, a new-age digital lending platform for understanding the sentiments of borrowers, has yielded some important findings. The nationwide study was based on data collected from 1,50,000 borrowers in the age group 21–55 in Tier 1 and 2 cities over the period 25 March 2020 to March 2021.
According to national figures, about 25 percent of borrowers took loans to start their business, while 18 percent took loans to manage their medical expenses and 17 percent took loans to buy 2-wheelers for 4-wheelers. -19 epidemic and its social and economic effects.
While Delhi NCR has the highest number of loan applications, Tier 2 cities have also seen an increase of 38 percent in loan applications. Loan applications in Tier 1 cities have remained stagnant due to a decrease in luxury spending.
Some other important findings of the report are as follows:
In Mumbai, 27 percent of borrowers took personal loans to start their business, while 15 percent of borrowers took loans to buy electronic gadgets such as laptops, tablets etc. due to remote work culture.
In Delhi, 31 percent of loan applications were for household items such as washing machines and dishwashers, and 25 percent for medical expenses due to the epidemic.
In Bangalore, 28 percent of loan applications were received for the purchase of electronic gadgets, followed by 12 percent for upskilling courses, indicating that many people use their free time to upskill or upgrade themselves.
In Hyderabad, 20 percent of borrowers took personal loans to cover their medical expenses, while 15 percent of loan applications were for upskilling courses.
In Chennai, 19 percent loan applications were for the purchase of 2-wheeler or 3-wheeler vehicles, while 17 percent were for the purchase of electronic gadgets such as smart TVs, laptops, etc.
Indianlands founder and CEO Gaurav Chopra said, “The last 12 months have been the most difficult times of our lives due to financial constraints due to Kovid-19 and the epidemic. The loss of employment coupled with economic weakness has hit many people across the country. However, the Boreover Pulse report from Indianland indicates that youth have displayed a strong sense of resilience and are determined to have complete control over their financial future. A large number of our debtors show entrepreneurial spirit, who have chosen to start their own business in the epidemic and this is a positive thing. It is gratifying to see that most of the loan applicants are from Tier 2 cities, which is a clear indication that there is a huge demand in these markets. Our study of rapid economic growth after the epidemic makes us more optimistic. ”
Surprisingly, Tier cities account for 54 per cent of loan applications, while Tier 1 cities account for 46 per cent. Tier 2 with maximum loan applications includes Coimbatore, Chandigarh, Lucknow, Indore and Kochi.
The survey’s main findings reflect a decrease in the percentage of wedding and tourism expenses. Thus it is clear that the youth are turning their attention to less expensive weddings and budget-friendly travel options.
About 52 percent of the borrowers in the study were aged 25–35, making it a youth-focused report. The report included female and male debtors who had Rs. 10,000 to Rs. Wanted loans in the range of 50,00,000.