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House renovation top reason for taking instant personal loan: Study

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Coimbatore, May 11 (PTI) Home improvement and medical emencies are the top two reasons why majority of Indians, especially the millennials, opt for instant personal loan, shows an analysis of data involving lakhs of users of SimplyCash, the instant loan app powered by the Hero Group.

In the last 12 months, 37 per cent of all instant personal loans disbursed by the firm were taken for home improvement, which was followed by factors like medical emergencies (28 per cent) and marriage and family functions (12m per cent).

About 5 per cent of customers took a loan for education, be it for their child’s education or for upskilling their own skills and other causes included business-related expenses (2 per cent), holidays (2 per cent) and paying off debt (2 per cent).

“The percentage of applicants taking instant personal loans for home improvement has been increasing over the years. It now accounts for 37 per cent of all loans disbursed by us in the last 12 months, a sharp increase from the figure of 28 per cent in the previous year,” Digital Hero Manager (national) Prashant Chopra said in a release here.

“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,” Chopra said Buoyed by its strong growth trajectory, SimplyCash intends to double its presence to 200 locations across India in the next two years.

Hero FinCorp, the financial services arm of the USD 10 billion Hero Group, is one of India’s largest privately-owned non-banking finance companies (NBFC).

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This report is auto-generated from PTI news service. ThePrint holds no responsibility for its content.

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