Home / Money / Personal Finance /  Millennials borrowed for health and credit refinancing in 2020: Survey

Millennials availed digital loans in 2020 to meet their emergency fund requirements like medical expenses, and credit refinancing. It is a trend that was not seen in earlier years.

There was also a surge in loan demand for home renovation post the lockdown, according to a report by CASHe, a digital lending platform.

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"A year back, millennials were more skewed towards consumer durable purchases," stated the report' Millennial Loan-o-Nomics', which analysed an active pool of over 4 lakh loan applications.

As the new situation emerged due to the pandemic, millennials' borrowing behaviour changed compared to earlier years. As many lost jobs or employers cut their salaries, 16% of millennials availed loans for credit refinancing.

Those between 30 and 40 years accounted for about 51% of the loans taken. Most borrowers (41%) in 2020 were those earning between 10,000 and Rs-25,000. A year earlier, those with income between 25,000 and 50,000 took most loans.

Loan demand was highest, at 81%, from millennials earning 10,000– 50,000, and 76% preferred small-ticket loans ranging between 10,000 and 50, 000

The survey also compared Android with Apple phone users. Of the total loans disbursed, 90% were availed by Android users. Most of them used Samsung, Xiaomi and Vivo smartphones.

Among cities, most applications were from Bengaluru, followed by Hyderabad, Chennai, Mumbai, Pune, Gurugram and Kolkata.

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