32% borrowers opted for loans to start their own business in Ahmedabad. In Ahmedabad, 32% borrowers opted for a loan to start their own business; while 22% loan applications were for the purchase of household durables like refrigerator, washing machine etc. 12% borrowers opted for a personal loan to either buy a 2-wheeler or 4-wheeler vehicle.
These were some of the significant findings of Borrower Pulse Report by IndiaLends — a new-age digital lending platform to understand the borrower sentiments since the country went into lockdown a year ago. The nationwide study was based on data collected from over 1,50,000 borrowers belonging to the age group of 21-55 years, from Tier 1 and 2 cities, during the period 25th March 2020 to 20th March 2021.
According to the national data, around 25% borrowers opted for a personal loan to start their own business, while 18% borrowers opted for a loan to manage their medical expenses and 17% borrowers opted for a loan to either buy a 2-wheeler or 4-wheeler vehicle, largely due to Covid-19 pandemic and the resultant social and economic impact.
While Delhi NCR saw the maximum number of loan applications, there has also been a 38% increase in loan applications from Tier 2 cities. Due to a decline in luxury expenditure, loan applications from Tier 1 cities saw a muted demand.
Some of the other significant findings of the report were:
· In Mumbai, 27% of the borrowers opted for a personal loan to start their own business; while 15% borrowers opted for a loan to purchase electronic gadgets like laptops, tablets etc. given the shift to a remote working culture
· Delhi witnessed 31% loan applications for the purchase of household durables like washing machine and dishwasher; while 25% applications were for medical expenses owing to to the pandemic
· 28% loan applications received in Bengaluru were for the purchase of electronic gadgets, followed by 12% applications were for upskilling courses which points out to the fact that a lot of people utilised their free time to upskill or upgrade themselves
· In Hyderabad, 20% borrowers opted for personal loans to cover their medical expenses whereas 15% of the loan applications were for upskilling courses
· In Chennai, 19% loan applications were for purchasing 2-wheeler or 4-wheeler vehicles; while 17% borrowers opted for loans to purchase electronic gadgets like Smart TVs, laptops etc.
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