LoanTap - Evolution of personal loan

India is bestowed with the largest millennial population in absolute terms, globally. Millennials, also known as Generation Y or 'Gen Y' in short, are a population group in the age bracket of 22-35 years.

They are tech-savvy, culturally diverse, well-travelled and high-income urban dwellers, working in new technology jobs and open to new concepts and ideas.

India is forecasted to have 410 million millennials, who will spend USD 330 billion annually, by 2020, said a Morgan Stanley 2017 report.

Growth of Loan Segment

Millennials are ambitious. Irrespective of the gender, they aspire to fulfill their wish-list without waiting for 5-10 years of extensive planning. The 22-35 years old are the pro-credit generation; they follow their instincts while making purchases, be it big or small.

There is a considerable transformation in the demands of millennials over the years. They are keener to spend on big-ticket purchases at an early age.

While it has become difficult to manage both needs and dreams within the income, Digital NBFCs have simplified and made available personal loans that meet the needs of these millennials. They are also frequently termed as lifestyle loans, as they are customised according to situation or requirement.

A recent CIBIL report highlighted the approximate annual increase in the loan seekers by 30 per cent in the period between 2016 and 2018, led by growth in the number of millennial borrowers by 58 per cent.

Credit Consciousness - Healthy and Wise Loan Seekers

Studies show that along with being the pro-credit generation, millennials have become credit conscious too over the years. They are observed to keep a close eye on their financial health to maintain a good credit record. The study denotes that maximum loan seekers/millennial population avail instant loans for aspirations, but do not default on their payments. They are successful in maintaining a healthy credit score. This multiplies their chances of availing credit to fulfill their dreams as well as meet their needs.

Gen Y knows exactly how to manage their loans and choose digital lenders to meet their credit requirements. They are observed to be prudent when it comes to maintaining financial fitness.

Millennials expenditure mostly comprises of short-term goals as well as few long-term goals. With the increase in the availability of customised personal loans, millennials can get the financial resources they need to meet both types of goals. In this fast-paced world, it may be difficult to keep track of our income and expenses. Thus, one must follow the 50-30-20 rule on a regular basis to avoid a debt trap situation, where 50 per cent of income should be spent on necessities, 30 per cent on discretionary expenses like travel and shopping, and 20 per cent as Savings.

Changing Face of Personal Loan

Consumption Patterns have seen a considerable shift over the years. The demands for food, clothing & shelter have been replaced by food, clothing & experiences.

However, ever considered how the millennial audience is managing to maintain a lifestyle as well as good financial health without compromising on their needs?

It's quite simple! With the emerging online lenders, the above is a cakewalk for the millennial population. NBFCs have designed customised products to add convenience for customers.

A three-step loan application and few hours are all it takes to get the amount transferred to your account.

Well, that's not it!

While the variety of products you can choose from is enormous, each product comes with customised features and convenience and helps manage cash flow in a better manner.

Revolution in Personal Loans

Previously, personal loans were known to be a liability as they added a burden to the outflow of an individual. However, over the decade, a personal loan has been refurbished in a manner that helps individuals manage the monthly cash flows in a better way.

For individuals looking for a loan along with a reduced outflow facility, EMI free loan is the perfect fit.

Planning a vacation with family - Travel Loan will give you the liberty of interest-only payment for the first few months to enable you to recover from the holiday expenses without burdening your pocket.

Don't want to compromise on your wedding day? - Marriage Loan will cover wedding-related expenses along with interest-only option in the initial few months.

If you wish to relocate to luxurious vicinity without the worry of the security deposit, then with Rental Deposit Loan you can pay only interest on the loan and the deposit is directly given to the landlord.

For millennials who do not like the calendar to rule their celebrations, Advance Salary Loan gives them a loan amount which is a multiplier of their net salary as a short-term loan.

If you are looking for debt consolidation of multiple cards into a single low-cost loan, then Credit Card Takeover Loan allows you to do the same.

As you can see there has been an innovation in the personal loan segment that provides the millennial loan seekers a variety of loan products to meet their life stage requirements with ease. Technology has not only added convenience to the process but also given more flexibility in the hands of the customer. What's better than a simple, convenient and fit to pocket Instant Personal Loan!

This story is provided by BusinessWire India. ANI will not be responsible in any way for the content of this article.