Skift Take
The surge in airfares and tour packages, coupled with millennials’ shift in spending patterns, is quite possibly driving the demand for travel loans.
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More Indians are taking personal loans to meet vacation-related expenses, according to the findings of a survey titled ‘How India travels using holiday loans’, conducted by online loan platform Paisabazaar.
As many as 21% of consumers took a personal loan for vacation in the past six months. Among those who did in the first quarter of financial year 2023, 81% were for domestic travel while 19% were for foreign travel. Popular foreign destinations for these loans included Dubai, Thailand and Europe, while Goa, Himachal Pradesh and Uttarakhand were top choices within the country.
Paisabazaar surveyed and spoke to more than 4,000 respondents from 105 cities and towns.
While personal loans are traditionally taken for need-based expenses such as medical emergencies, higher education of children and home renovation, now, taking a personal loan for travel has emerged as a rising trend among the youth, the survey showed.
21% respondents, who availed a personal loan through the Paisabazaar platform, used it for holiday expenses“Over the years, we have seen consumers getting more confident and comfortable in accessing credit for varied needs and aspirations, including travel and vacation. This augurs well for the overall ecosyst