Two in three Indians are open to borrowing, a new survey by consumer credit provider Home Credit India has found.
Interestingly, meeting the family’s needs and wishes is the number one reason people want to take out a new loan, reveals the report, which released a new perspective on the borrowing habits of the family. India.
The second reason most Indians take out a loan is to improve their lifestyle. The survey, commissioned in 12 cities and 2,571 respondents, also found that 33% of Indians are willing to take out a loan for a durable consumer item such as a cell phone, television and refrigerator, among others. The other most popular loan categories are: two-wheelers (23.3%) and personal expenses (20.3%). Next come the purchase of cars (12.5%), houses (12%) and gold (10.5%).
“In recent years, there has been a change in Indian behavior and approach to lending. Almost 67% are now ready to take out loans, ”said Marko Carevic, Marketing Director, Home Credit India. Activity area here.
“This survey is yet another attempt to understand our customers, so that we can tailor our product offerings as needed. “
For almost 46% of Indians, the desire to meet the needs and wishes of the family tops the list of reasons for taking out a loan. Family guidance and needs are highest among residents of Patna (61%), followed by Lucknow (58%), Nagpur (56%) and Jaipur (54%).
Mumbai leads advice from friends (65.1%), Lucknow leads family advice (72.2%) and Chandigarh leads advice from colleagues (54.9% ). Mumbai and Delhi residents are the most advanced in terms of consulting a financial advisor before taking out a loan at 44.2% and 38.8%, respectively.
While a large portion of the population is open to borrowing, there is a significant group that is opposed to lending, according to the survey commissioned by Home Credit India and conducted by research agency Absolutdata.
Lack of procedural (paper) information and payment options is one of the main reasons people are averse to loans. Tier 2 cities always rely on personal experiences against professional advice when applying for a loan.
Family and friends
Friends and family are not only at the top of the survey to meet needs, but they also play the most important role in the loan decision-making process. Thirty-four percent of Indians rely on friends for advice when taking out loans, followed by family at 31.8 percent and co-workers at 25.4 percent.
A financial advisor is second with 22.4 percent as a source of advice, followed by a sales representative of a loan provider at 21.8 percent. About 20.9% of people make a personal decision when taking out a loan and do not consult with anyone.