Published: 09th October 2021
Over 80% of millennials want personal loans to finance their higher education, finds IIM Kozhikode study
IIM Kozhikode's Entrepreneurship and Innovation Cell (E-Cell) conducted this nationwide survey with digital lending platform IndiaLends
At least 81 per cent of millennials (age 25-35) want to take out a personal loan in the near future for education, found a nationwide survey by IIM Kozhikode's Entrepreneurship and Innovation Cell (E-Cell) in collaboration with digital lending platform IndiaLends. The report, called ‘Indian Borrowers’ Sentiment Report’, sampled 1,400 respondents from Tier 1 and Tier 2 cities, focused on the spending habits of millennials and Gen Z (age 21-25) and their propensity to take out a personal loan.
The survey comprised both salaried and self-employed participants and showcased several interesting data points. As per the report, finances of about 66 per cent of Gen Z have been impacted by the second wave of COVID, while finances of about 75 per cent of baby boomers (age 60 years and above) had no impact. The second wave of the pandemic was more challenging for 53 per cent of the self-employed class as compared to 46 per cent of the salaried class.
Over 27 per cent of millennial respondents plan to apply for a personal loan to meet their medical expenses, while about 18 per cent plan to apply for a personal loan for their wedding. IndiaLends Founder and CEO Gaurav Chopra said, “With about 65 per cent of Indians planning to opt for a personal loan in the immediate future, there is a clear indication of pent-up demand for credit products and overall optimism among customers."