Unified Payments Interface (UPI) has emerged as the second-most preferred repayment method for repayment of digital loans after e-NACH, according to a recent report.
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Personal loan app CASHe on Thursday released the Financial Mood of the Millennials 2022-23 report, an exclusive and proprietary analysis based on a pool of 540,000 customers. The report reveals that 36 percent of the respondents chose e-NACH and about 27 percent picked UPI for their loan repayment. It also shows that 2022- 23 saw an uptick of one percent in women borrowers compared to previous years.
“One of the top findings of the report is that 84 percent of its customers prefer to take a credit line over personal loans (14 percent) and Buy Now, Pay Later (BNPL). Satchetised (short-term, small ticket-size) loans of less than Rs 10,000 are preferred by 49 percent of millennials. The data further indicates a significant credit demand from bureau-based prime (44 percent) and near-prime (38 percent) millennials, thereby reinforcing the need for unsecured and hassle-free digital credit products that are easily accessible by all,” CASHe said in a statement.
According to the report, unforeseen medical and monthly expenses are the top two reasons for availing short-term digital credit followed by shopping, home renovation, education, etc. Bangalore seems to lead all the cities in India for credit demand followed by Hyderabad, Pune, Ghaziabad, and Gurgaon.
The data also throws up a surprising insight — West Bengal, Punjab, Gujarat, Assam, and Kerala represent the states from where millennials with the highest bureau scores have availed credit from CASHe.
The report also stated that 68 percent of millennials seek assistance from financial advisors for making investment decisions. Another 45 percent trust social media as a prime source to make investment decisions.
As per the report, about 37 percent of millennials are still somewhat financially dependent on their parents, but a majority of 63 percent of millennials are financially independent. Systematic Investment Plan (SIP) has emerged as the most popular option for online investors, accounting for 35 percent of their investing activities, interest in digital gold (18 percent) is beginning to catch up, followed by tax-saving products (15 percent), goal-based investments (10 percent), real-estate and fixed deposits.
There is a growing consciousness among millennials to start saving early for their post-retirement life. More than 33 percent of millennials stated they believe in saving 20 percent of their annual income to become financially secure for retirement.
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