Chennai / May 10, 2022: Home improvement and medical emergencies are the top two reasons why majority of Indians, especially the millennials, opt for instant personal loan, shows analysis of data involving lakhs of users of SimplyCash, the instant loan app powered by the Hero Group.
In the last 12 months, 37% of all instant personal loans disbursed by the firm were taken for home improvement. This was followed by factors like medical emergencies (28%) and marriage and family functions (12%). About 5% of customers took a loan for education, be it for their child’s education or for upskilling their own skills. Other causes included business-related expenses (2%), holidays (2%) and paying off debt (2%).
“The percentage of applicants taking instant personal loans for home improvement has been increasing over the years. It now accounts for 37% of all loans disbursed by us in the last 12 months, a sharp increase from the figure of 28% in the previous year. Most of our customers belong to the millennial generation (those currently below 40 years of age). Our data shows that this segment is now focusing on more serious priorities like home improvement and health, rather than funding lifestyle or recreational needs. This may be the lingering effect of the pandemic, due to which discretionary expenses are still being delayed. The amount of instant personal loans taken by our customers ranges from Rs 50,000 to Rs 1,50,000.” said Prashant Chopra, National Manager, Digital, Hero FinCorp:
The company is seeing a robust demand for digital lending platforms for taking personal loans due to the ease with which funds are disbursed, compared to traditional banking. However, it has cautioned people to go for only trusted apps.
Buoyed by its strong growth trajectory, SimplyCash intends to double its presence to 200 locations across India in the next two years.