Personal Loans in India: Why is There an Increase in Demand?

A personal loan is a boon to humankind that assures people do not have to depend on anyone for their financial needs. People have realised that it is the best way to finance their various needs without the hassles of complex paperwork or delayed procedures. It has been available for a very long time but has only been used extensively in the past ten years.  Let’s delve deep to find out why is there an increase in demand for personal loans in India. 

What Are The Most Common Types of Personal Loans Available in India?

Personal loans in India are versatile financial tools that cater to a wide range of individual needs. 

Types of personal loans you can avail of in India:

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1. Medical Emergency Loans: These are specifically designed to cover medical expenses like hospital bills, surgeries, or any medical treatment. These loans provide quick financial assistance during times of unexpected health crises.

2. Education Loans: Aimed at supporting education-related expenses, they help individuals fund their or their children's education.

3. Wedding Loans: Tailored for couples planning their big day, wedding loans assist in covering the various expenses associated with weddings, including venue costs, catering, decorations, and other related expenditures.

4. Travel Loans: travel loans offer a convenient way to finance vacations. Borrowers can use the funds for flights, accommodation, sightseeing, and other travel-related expenses.

5. Home Renovation Loans: Meant for individuals looking to upgrade or renovate their homes, these loans provide the necessary funds for repairs, remodelling, or any other home improvement projects.

6. Consumer Durable Loans: Specifically designed for purchasing consumer durables like electronic appliances and gadgets, these loans enable individuals to make high-value purchases with convenient repayment options.

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Understanding the variety of personal loans available allows people to choose the one that aligns best with their financial goals and needs. It's essential to carefully assess the terms, interest rates, and repayment options before picking a particular type of personal loan.

Why is There a Growing Demand for Personal Loans in India?

There has been a surge in personal loans in the Indian market. So here are the top reasons why is there a growing demand for personal loans in India:

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• Hassle-Free Process: With the help of the internet and online banking, credit is now more accessible. All you are required to do is visit the lender's official website or download their mobile app and then apply for the amount of loan needed.

• Flexible Loan Tenure: At your convenience, you can choose the tenure which led to the popularity of personal loans in India. Generally, they range from 6 months to a maximum of 60 months. However, it would help if you remembered that the longer you wait, the higher the interest rate will go.

• Fantastic Interest Rates: Before availing of personal loans, people compare the interest rates offered by various lenders and then pick the most affordable one. Lenders currently provide personal loans at a much lower interest rate. 

• Debt Consolidation: Personal loans can be a game-changer if you deal with many different debts. Instead of juggling all these separate debts, you roll them into one loan. It's way more straightforward than tackling each debt – like tidying up your financial mess in one go!

• Collateral-Free: Personal loans stand out because they're unsecured, meaning you don't have to offer any assets, like property or guarantors, to secure approval. Your financial capacity becomes the sole factor considered, making the process straightforward.

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How Do Changing Lifestyles Drive the Demand for Personal Loans in India?

When we understand how changing lifestyles drive the demand for personal loans in India, we need to dive into the world of millennials. They bring a fresh perspective, breaking away from the traditional approach of postponing needs due to financial constraints. Unlike its predecessors, Gen-Y has shifted the way it funds its aspirations. The recognition of the importance of a balanced lifestyle, coupled with a growing sense of "luxury-consciousness," has fueled their inclination towards taking personal loans. This generation, known for its self-expression and liberal mindset, embraces instant cash loans without hesitation. Whether it's a loan for shopping, handling emergencies or indulging in leisure activities, millennials have embraced a proactive approach to fulfilling their varied needs.

Conclusion

The surge in demand for personal loans in India is driven by factors that cater to individuals' evolving needs and preferences. The convenience offered by online platforms and the hassle-free application process have made personal loans more accessible than ever. Moreover, the changing lifestyles, particularly among millennials, play a pivotal role in propelling the demand for personal loans. This generation's pursuit of a balanced lifestyle and heightened awareness of luxury has led them to embrace personal loans to fulfil various aspirations, from education and weddings to travel and home renovations.

In this dynamic financial landscape, where personal loans have become integral to meeting diverse needs, platforms like mPokket stand out. mPokket offers a user-friendly interface, quick approvals, instant short-term loans, and instant disbursals, aligning perfectly with the demands of the modern generation. As individuals seek financial solutions that resonate with their lifestyle, mPokket provides a seamless and reliable option for those looking to navigate their financial journey confidently and conveniently.