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    Millennials account for 84% of total wedding loan applications: IndiaLends report

    Published on February 6, 2020

    Mumbai: The Millennials or the Generation-Y are independent from very early in their careers and responsible for their financial wellbeing. This generation, aged 22 to 35 years, are not dependent on their parents and fund their own expenses. Millennials account for 84% of total wedding loan applications, a growing trend among young Indians. These were some of the findings of a report by IndiaLends, ahead of World Marriage Day (9th February 2020). The data has been culled out from the company’s current base of 7.5 million customers.

    As per IndiaLends data, borrowers apply for loans three to four months in advance to pay for wedding expenses such as jewellery, wedding arrangements such as venue, catering, and stay arrangements for guests, etc – with loans ranging between Rs 2 lakh to Rs 30 lakh. Comparing 2019-20 data with the previous year, IndiaLends reported a 30% growth in personal loans for wedding purposes.

    Metros saw an increase of 46% in wedding loan applications in 2019 as compared to 2018 with top cities like NCR, Mumbai and Bangalore recording the highest number of applications. While tier 2 cities saw a growth of 18% with cities like Lucknow, Vizag, and Indore witnessing the highest rise.

    Percentage change in loan applications from 2018-19 Wedding season to 2019-20 Wedding season
    Metro Cities
    Mumbai NCR Bangalore Hyderabad Chennai Kolkata Total
    51% 98% 44% -12% 17% 67% 46%
    Tier-2 Cities
    Ahmedabad Jaipur Lucknow Indore Chandigarh Vizag Total
    14% 18% 39% 28% -2% 39% 18%

    The report also highlights that 42% of all wedding loan applications came from women. This clearly reflects that women in today’s time are more financially independent, thereby liberating their parents from bearing wedding expenses.

    IndiaLends Founder and CEO Gaurav Chopra said, “Traditionally, in a common Indian household, it was parents who would save for children’s education, weddings and even their vacations. But off-late millennials who account for roughly half of India’s adult population are bringing a change in this trend. This self-made and self-aware generation believes in managing their own finances and don’t want to burden their family or friends to fulfil their dreams and desires. Even when it comes to weddings, considered to be a big-ticket expenditure, millennials don’t want to compromise and are willing to shoulder all the wedding related expenditure on their own, prompting them to approach lenders — particularly digital lenders — for necessary funds to meet their goals”

    For a new generation of young salaried and tech-savvy professionals, the idea of approaching traditional banks is often unappealing. Obtaining loans from banks can be long-drawn-out. On the other hand, digital lending offers quick and easy access to loans, even to individuals with zero credit history.

    Digital lending platforms offer specialised wedding loans based on easy EMIs that are within the reach of salaried Millennials. This proactive generation — known as the Leisure Conscious Millennials — plan and design their entire wedding ceremony from the word go as per their choice, preference and financial capacity; so much so that even their priorities are different from those of their parents.