18 June 2019 Finance

Millennials Resorting To Personal Loan To Realise Wanderlust Dreams

There are few things in world which can match the gratification that travelling produces. Whether it’s the excitement of seeing new places, learning from new cultures or just relaxing around a beach or misty mountains; travelling has often been considered as the best way to unwind, especially in the midst of a high-paced, super busy life that urban individuals lead.

However, money could prove to be a sticking point while making a travel plan.The aim for long-term saving and a secure future often outweigh the need to spend on travelling. That trend has witnessed a massive shift in India with the sandwich generation opting for more travelling in order to attain a certain level of work-life balance.

Loans for travelling has emerged as an attractive option for millennials to fulfill their dreams. However, a lot of 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.

IndiaLends, a new-age digital lending platform, has reported 55% growth in personal loans for travel purposes. More so, 85% of these loan seekers are millennials, who are seeking loans in the range of Rs 30,000 to Rs 2,50,000.

Gaurav Chopra, founder and CEO, IndiaLends said, “The emergence of ‘leisure consciousness across India’s younger generation and the realization 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.

“There has been a shift in the younger generation in terms of financial planning. Not just those who don’t have enough savings, but also those who want better travel experiences or wish to visit finer destinations are opting for loans. This also indicates the popularity of digital lending, which is growing substantially in India. For a new generation customer, the ease of services is one of the important criteria for choosing the servicing company”, he further added.

As per IndiaLends data, borrowers usually opt for countries offering visa on arrivals, 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.

Despite the urge of undertaking interesting vacations and the lack of money not withholding the younger generation, one must definitely keep the finer points of rate of interest and repayment ability in the mind. Apart from providing work-life balance, vacations and holidays also enriches life experience, however, it is also important to make proper calculation and planning to ensure repaying the loan to escape any unwanted debt trap.

With funding and repayment not being an issue, it’s time for you to fly away to enjoy your dream holiday and escape the rut of life.

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TAGS: Personal Loan, Loan
OUTLOOK 18 June 2019