Chennai: Gone are the days when people plan ahead for the annual vacation and earmark an amount to be spent while on vacation. Now, summer vacation appears to mean ‘avail a loan and enjoy holiday.’ Nearly 85 % of the millennials are seeking loans in the range of Rs 30,000 to Rs 2,50,000 ahead of summer vacation.
Many of these travel plans are result of long weekends and last-minute holiday planning which require quick accessible financing option. For a whole new generation of young salaried and tech-savvy professionals in the country, the idea of approaching traditional banks often seems unappealing. Obtaining loans from banks can be long and lengthy process. On the other hand, the digital lending space has enabled easier access to loans, even to new-to-credit salaried individuals with zero credit history, according to IndiaLends.
Says Gaurav Chopra, founder & CEO, IndiaLends, “the emergence of ‘leisure consciousness across India’s younger generation and the realisation that a balanced lifestyle is important, has led to increase in domestic as well as international travel.” A growing number of millennials are taking personal loans to satisfy their wanderlust. In many cases, the loan amount is a safety cushion that enhances the full experience of a destination. The new generation of young Indians are now planning holiday loan, just the way one plans investments.
As per IndiaLends data, borrowers usually opt for countries offering visa on arrival, since most millennials take loans for last-minute holiday plans. These include countries like Thailand, Dubai, Sri Lanka, Indonesia, Nepal, Maldives and Bhutan. On the other hand, they also have customers taking loans for luxury holidays to Europe, USA, South Africa, Australia and New Zealand....