Sunday, Dec 04, 2022

New Delhi, Mumbai Dominate Travel Loan Applications; Women On A Travel Spree

Outlook Money

New Delhi, Mumbai Dominate Travel Loan Applications; Women On A Travel Spree

New Delhi and Mumbai recorded the highest number of travel loan applications at 22 and 20 per cent, respectively. The average travel loan ticket average size has reduced, but the applications have seen a ten-fold increase. Women account for 27 per cent travel loan applications

People in Delhi seem eager for travel, and are not averse to taking a loan to fulfil that, a new survey by IndiaLends, an online loan and credit card marketplace has revealed. Among cities, New Delhi recorded the highest number of loan applications at 22 per cent.

Women have also increasingly taken to travel, and 27 per cent of all loan applications came from them.

The survey covered 27,967 respondents across eight Indian cities – New Delhi, Mumbai, Kolkata, Chennai, Bengaluru, Hyderabad, Pune, and Jaipur, with a mix of both salaried and self-employed people.

Here are some of the trends observed in the survey.

Travel Loan Applications On Rise, But Ticket Size Reduces

According to the survey, the average ticket size for travel loans has decreased by Rs 20,000 to Rs 75,000. Conversely, there has been a ten-fold growth in travel loan applications.

According to Gaurav Chopra, founder and CEO, IndiaLends, as India gets back to a normal life after the pandemic, there has been a remarkable shift in young people’s spending persona. More people are taking to travel as they believe it is an essential activity rather than an aspirational activity.

“We have seen a significant rise in travel loans and credit cards in recent months, even crossing the pre-pandemic level. With the festive holidays coming up, we expect this trend to continue,” says Chopra

Regarding the decrease in ticket size of travel loans, he says “the average ticket-size of travel loans has decreased, indicating the youth’s smart financial planning."

New Delhi People Making Higher Loan Applications, Jaipur The Least.

Among the eight cities where IndiaLends conducted the survey, New Delhi saw the maximum number of loan applications at 22 per cent, closely followed by Mumbai at 20 per cent.

Among metros, Chennai was the lowest at 8 per cent, and Jaipur recorded the lowest among all the eight cities surveyed, at 5 per cent.

More Women Taking Travel Loans, Salaried Dominate Travel Loan Market

In the entire loan segment, women accounted for a miniscule 14 per cent, but of this 14 per cent, 27 per cent of all loan applications were for travel. According to the survey, salaried individuals accounted for 72 per cent of travel loans, outpacing even the self-employed individuals.

“The same trend of salaried individuals at 69 per cent, overtaking self-employed persons, was seen in the travel credit card segment too,” the IndiaLends report said.

Millennials Driving Travel Loan Growth, Zillenails Follow Suit

According to the report, zillennials, i.e., people born between 1993 and 1998, accounted for 36 per cent of all travel loan applications in these eight Indian cities, while millennials, i.e., those who are born between 1986 and 1996, accounted for 52 per cent of travel loans.

Travel For Experiences, Not Rest And Recreation

Ankit Khurana, head - brand and marketing, IndiaLends, said that most people now consider travel as essential for personal growth rather than for rest and recreation.

“Travelling comes with a purpose for people, and an increased number of individuals are seeking travel for new experiences as opposed to rest and recreation purposes. Travel is now considered a means to personal growth, with a lifelong positive impact,” Khurana adds.