The study covered 1,500 borrowers between the ages of 18 and 55, with an average income of Rs 30,000 per month. The study, conducted to understand the ‘fast-evolving consumer lending behaviour’, said 75 per cent of borrowers took loans to buy consumer products, home appliances, home renovation and business purposes.
Of these, 50 per cent borrowers preferred EMI cards for purchases or other credit purposes. Credit cards were used by 25 per cent borrowers, while ‘buy now, pay later’ credit platforms found only 10 per cent takers.
As per the Home Credit India survey, borrowers found the EMI cards reliable with timely approval and quick disbursements. On the other hand, 60 per cent borrowers, mainly Millennials or Gen Z from Tier 1 and Tier 2 cities, showed interest in ’embedded finance’, which involves converting e-commerce purchases into EMIs, for affordable financing.
The borrowers are spread across cities such as Bengaluru (82%), Patna (74%), Lucknow (69%), Ludhiana (68%) and Jaipur (68%), the company said in a statement.
It has been said in the survey that 50 percent of the borrowers from cities like Jaipur, Pune, Ludhiana, Lucknow and Chandigarh have expressed their desire to take loans through WhatsApp chat. Chatbots and mobile banking were also the preferred modes of filing loan applications.
According to the survey, 40 percent of borrowers said they would like to be financially educated in areas such as personal finance from well-known organizations.