YOLO seems to be the motto the millennials live by. A recent study by IndiaLends, a new-age digital lending platform, found that 85% of individuals who applied for loans of Rs 30,000 to Rs 2.50 lakh for travel purposes were millennials.
The study was conducted ahead of World Tourism Day which is celebrated on September 27 and covered both salaried and self-employed Indians across six major cities — Mumbai, New Delhi, Bengaluru, Hyderabad, Chennai and Kolkata.
Out of the total loan applications received from this demographic group, also known as Generation Y, in the last one year, 19% were for travels across all the six metros; the maximum (20%) was received from Hyderabad, followed by Mumbai (19.7%) and Bangalore (19%).
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For a new generation of young salaried and tech-savvy professionals in the country, the idea of approaching traditional banks for loans is not appealing, given the long and lengthy application process. Instead, they are turning to digital lending companies who are giving new-to-credit salaried individuals with zero credit history, including millennials, easier access to loans for travels to exotic destinations around the world.
According to the data, borrowers usually opt for countries that offer visa on arrival, since most millennials take loans for last-minute vacations to countries such as Thailand, Dubai, Sri Lanka, Indonesia, Nepal, the Maldives, and Bhutan. Generation Y also applied for loans for luxury destinations in Europe, USA, South Africa, Australia, and New Zealand.
Within the country, Goa, Rajasthan, Kerala and Ladakh are the most popular destinations among young Indians.
Short & Sweet
A lot of these travel plans are the result of long weekends and last-minute holiday plans which require quick and easy access to finance. A growing number of millennials are taking personal loans to satisfy their wanderlust. In many cases, the loan is a safety cushion to enhance the holiday experience.