The consumer credit marketplace Paisabazaar has conducted a comprehensive survey that sheds light on an interesting trend among Indian citizens residing in Tier 2 cities and beyond. According to a report by Business Standard, an increasing number of people from these cities are turning to personal loans to finance their dream vacations. The survey, which covered the period between January and June of this year, reveals that close to 70% of respondents who availed personal loans for travel hailed from 97 non-metro cities. Among these cities, Patna, Jodhpur, Kanpur, Surat, Patiala, and Agra stood out with the highest number of respondents opting for travel loans.
The study further highlights that more than 70% of those taking such loans across the country are salaried professionals. Interestingly, the demand for personal loans spikes during the months of January and June, aligning with school and college holidays when families plan their vacations. This suggests that individuals are willing to take financial assistance to ensure a memorable holiday experience with their loved ones.
While the majority of individuals utilized personal loans to explore various destinations within India, a report by The Hindu indicates that international travel is also gaining popularity among holiday borrowers. Dubai, Thailand, and Europe are among the top choices for those who seek overseas travel experiences.
The growing interest in personal loans for travel has positive implications for the ecosystem. However, Naveen Kukreja, the Co-Founder & CEO of Paisabazaar, has emphasized the need for the industry to ensure easier access to credit as demand rises from a diverse set of consumers. This underscores the importance of maintaining a responsible and sustainable lending environment to support the aspirations of the growing number of travelers.
The survey encompassed insights from 4,000 respondents residing in 105 cities across India who had availed personal loans from Paisabazaar during the last six months. This extensive reach ensures that the findings are a reliable representation of the current trends in the market.
In conclusion, the survey conducted by Paisabazaar brings to light an emerging trend in the realm of personal finance in India. The willingness of individuals from non-metro cities to avail personal loans for travel signifies a growing desire to explore the world and create lasting memories. As the demand for such loans rises, it is crucial for the industry to cater to the needs of various consumers responsibly, facilitating their travel aspirations while ensuring their financial well-being.
