Bengaluru tops the list of cities with the highest credit demand from millennials

NT Correspondent

Bengaluru: CASHe, India’s leading credit-led, AI-driven financial wellness platform, today 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 unique and valuable insights into the millennials borrowing, spending, and investing habits. One of the top findings of the report is that 84% of its customers prefer to take a credit line over personal loans (14%) and BNPL (2%).

Satchetised loans of less than Rs 10,000 are preferred by 49% of millennials. The data further indicates a significant credit demand from bureau-based prime (44%) and near-prime (38%) millennials, thereby reinforcing the need for unsecured and hassle-free digital credit products that are easily accessible by all.

Unforeseen medical and monthly expenses are the top two reasons for availing short-term digital credit followed by shopping, home renovation, education, etc. Bangalore leads 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. Incidentally, the customers chose UPI (27%) as the second most preferred repayment method after eNACH (36%). 2022- 23 also saw an uptick of 1% in women borrowers compared to previous years.

The report also sheds interesting light on millennial investment habits using the customer base of its Sqrrl investment platform. It is observed in the report that 68% of millennials seek assistance from financial advisors for making investment decisions. Another 45% trust social media as a prime source to make investment decisions.