Home / Money / Personal Finance /  World Tourism Day: Study says demand for travel loan grew 10X in last one year

World Tourism Day: Study says demand for travel loan grew 10X in last one year

IndiaLends also witnessed a six times growth in travel credit cards. 75% of the travel credit cards issued through the platform in 2022 came with complimentary access to airport lounges, and over 30% with travel specific offers. (AFP)Premium
IndiaLends also witnessed a six times growth in travel credit cards. 75% of the travel credit cards issued through the platform in 2022 came with complimentary access to airport lounges, and over 30% with travel specific offers. (AFP)

The average ticket-size of travel loans has reduced from 95,000 to 75,000 indicating loan applicants‘ planned approach towards their travel expenses.

Demand for travel loan has grown 10 times in the last one year and 36% of travel loan applications came from zillennials (aged between 21-26), while 52% came from millennials (27-40).

IndiaLends, an online marketplace for loans and credit cards, which released its study on travel loans on the occasion of World Tourism Day today, said the average ticket-size of travel loans has reduced from 95,000 to 75,000 indicating loan applicants‘ planned approach towards their travel expenses.

The study covered both salaried and self-employed Indians across eight major cities --Mumbai, New Delhi, Bengaluru, Hyderabad, Pune, Chennai, Jaipur, and Kolkata. Out of the total loan applications received from these geographies, the maximum loan applications came from New Delhi (22%), followed by Mumbai (20%), Bengaluru (17%), Hyderabad (15%), Pune (13%), Chennai (8%), and Jaipur (5%).

The report also highlights that 27% of all travel loan applications came from women, as compared to 14% in other categories.

IndiaLends also witnessed a six times growth in travel credit cards. 75% of the travel credit cards issued through the platform in 2022 came with complimentary access to airport lounges, and over 30% with travel specific offers. IndiaLends also reported travel offers being the second most searched category after electronics on it’s recently launched brand offers feature available on Android App.

Gaurav Chopra, Founder & CEO, IndiaLends said, “We have seen a significant rise in travel loans and credit cards in recent months, even crossing the pre-pandemic level. With the festive holidays coming up, we expect this trend to continue. As life gets back to normalcy, we have observed a shift in young people’s spending pattern. Our members believe travel is essential rather than aspirational. However, the average ticket-size of travel loans has decreased, indicating the youth’s smart financial planning."

“Travelling comes with a purpose for our customers, and an increased number of individuals are seeking travel for new experiences as opposed to R&R" said Ankit Khurana, head of Brand and Marketing, IndiaLends. “Travel is now considered a means to personal growth, with a lifelong positive impact", he added.

Salaried individuals have outpaced self-employed in the travel loan segment, with over 72% availing them. The trend continues even in the travel credit card segment with salaried applicants commanding a 69% share.

IndiaLends is currently working with 60+ RBI approved partners, which include major PSUs and private sector banks, NBFCs, fintechs, and P2P lenders. The company also offers an open-API model for banks and NBFCs to partner with them through a plug-and-play approach. The company has over 13 million customers, with over 85% of them being millennials and zillennials. The company achieved its cash break even in March 2022.

ABOUT THE AUTHOR

Navneet Dubey

Navneet Dubey is a personal finance writer and artist. Over the past decade, he has written feature stories on insurance, financial planning, lending and borrowing.
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