International Youth Day 2021: According to a survey performed by digital lending platform IndiaLends on India’s youth (aged 20-35), wedding loans comprised 33 percent of all loans during the second wave of the Covid-19 pandemic, compared to 22 percent during the first wave. During the second wave of the pandemic, business loans climbed from 16% to 23%.
On the occasion of International Youth Day, IndiaLends performed a study on lending trends among young Indians. The survey was carried out among paid and self-employed young Indians in nine cities: Mumbai, New Delhi, Bengaluru, Hyderabad, Chennai, Kolkata, Jaipur, Ahmedabad, and Pune from August 2020 to March 2021 and April 2021 to July 2021.
A total of 11,000 respondents were assessed for their credit needs in nine major categories: wedding, business, education, travel, home, medical, two-wheeler, and debt consolidation.
According to IndiaLends, the rise in wedding loan applications is due to a year-long delay in their wedding preparations caused by the pandemic.
10% of applications are female
With a concern of employment instability, the second wave of Covid sparked a new surge of entrepreneurship among young people, increasing loan applications to establish small businesses. Women borrowers accounted for 10% of all applicants for both marriage and business loans.
IndiaLends Founder and CEO Gaurav Chopra commented on the study’s findings, saying, “We are pleased to witness ongoing transformation among young behavior and thinking throughout the previous 17 months of the pandemic.” The young of India have proved to be adaptable to shifting conditions. They are now better equipped to meet their financial obligations and are progressively developing financial discipline.
Average ticket size
The average loan size for a wedding can be around Rs 4.13 lakh, along with the medical expenditures of Rs 4 lakh, home expenses for about Rs 3.43 lakh, and business expenses of Rs 2.62 lakh.
During the first and second waves of the pandemic, IndiaLends received about 56 percent of loan applications from Tier-2 cities.
Among other things, applications for schooling, vehicle and two-wheeler loans, travel loans, and so on were nearly identical in both the first and second waves.
Due to the severity of the crisis and the influence it had on the health of the majority of the people, applications for medical loans increased somewhat in the second wave.
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