Study done by Home Credit commissioned reveals encouraging shift in borrowing behaviour.
According to a recent survey conducted by Home Credit India, highlighting the borrowing patterns and behaviour of consumers, 47% of the people in Chennai are willing to take a loan to fulfil the needs of their family. 85% of Chennai has never taken a loan before and their willingness to take one, highlights a big shift in behavioural patterns.
This study conducted by research agency Absolutdata has been commissioned across 12 cities and 2,571 respondents have been evaluated to provide a near to accurate pattern of savings, spending and borrowing behavior in the country. The desire to fulfil the needs and the wishes of the family tops the reasons for taking a loan in the future (47%). Family orientation and needs is highest among people in Patna (61%) followed by Lucknow (58%), Nagpur (56%) and Jaipur (54%).
Coming in next, why most people from Chennai are willing to take a loan is to Upgrade their Lifestyle (44%). Next big reason is to avoid paying huge amount in one go (41%) and in case of unplanned expenses (39%). 35% of the respondents showed willingness to take a loan if they don’t have enough money to buy things that they want. Amongst other reasons, 32% of the respondents also said that they would not hesitate to take a loan to have enough money in hand, 31% people would take loan to buy things immediately without waiting for money to come from some other source and 22% would take a loan if they ever mismanage their income.
On the other end of the spectrum, a section of the respondents is still not inclined to the idea of it. The study identifies Key Behavioral Challenges that this section faces. 42% of the respondents feel taking a loan is a stressful feeling. The second reason for loan aversion is that 41% of respondents fear of not being able to repay. 36% prefer to borrow money from family or friends while 35% believe in saving and spending.
Speaking about the findings, Mr. Marko Carevic, Chief Marketing & Customer Experience Officer, Home Credit India said; “There is a strong pattern evolving across India where people are increasingly becoming receptive towards loans. We have conducted this research across 12 cities and this a very interesting behavior pattern that has appeared. We are mapping different cities with the aim to offer better products and services to our 10 million customers. The study in Chennai highlights that 47% people take loans to fulfil the needs of their family and 44% take loans to upgrade their Lifestyle which is a major shift in behavior.”