It is no secret that the millennial generation borrows a lot to fund their lifestyle needs. But what all do they borrow for? According to a report released by CASHe, a digital lending company, in 2019, millennials borrowed the most for medical expenses and to purchase consumer durables.

According to the report, emergencies, like unforeseen medical expenses, is the reason why 37% of millennial customers resorted to lending – a sharp increase from 31% last year. Medical expenses were closely followed by loan foreclosure and holidays, the report stated.

While ’emergencies’ accounted for approximately 57% of the borrowing, ‘aspirations’ accounted for 43%.

The report, ‘The 2019 Millennial Loan-o-Nomics’, analysed data of an active pool of over four lakh loan applications received from customers outlining multiple data points and key insights showcasing the typical consumption patterns, buying behavior and borrowing habits of millennials across India.

Here are more findings from the survey.

The report stated that ’71 days’ is the average frequency of repeat loans, while 73% of the applicants are repeat users. In terms of loan size, a majority of them (27%) preferred small ticket loans of under Rs 10,000 and the data indicated a significant credit demand from near-prime millennials accounting for approximately 55%. “This reinforces the idea that millennials are actually quite financially disciplined – repaying loans on time and dispelling their image of being irresponsible spendthrifts,” it stated.

  • Male vs female borrowings

According to the CASHe report, only 10% of borrowers are women among the active pool of over 400,000 loan applications received from customers. “This suggests that women in this cohort are conservative when it comes to borrowing and spending,” states the report.

  • City with the highest demand for credit
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Hyderabad soars ahead in terms of millennial credit demand compared to last year, ranking second after Bengaluru, followed by other metro cities such as New Delhi, Pune, Mumbai, Chennai, Jaipur and Ahmedabad.

Older millennials, between the ages of 31-38 accounted for about 52% of the loans taken, while the millennial cohort earning in the Rs 25,000-50,000 category presented the highest number of borrowers at 43%, succeeded by those in the Rs 15,000-25,000 monthly income bracket at 36%.

According to the report, UPI and NEFT were the most preferred mediums of repayment. 78% of millennials chose to apply for loans during weekdays, especially on Tuesdays and Thursdays. And while 12 PM to 4 PM was recorded as the most preferred time to apply for a loan, 5 AM to 6 AM was registered as the most preferred time when millennials chose to repay loans.





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