Home improvement top reason why Indians take instant personal loan, shows data from SimplyCash
Chennai / May 10, 2022: Home improvement and medical emergencies are the top two reasons why majority of Indians, especially the millennials, opt for instant personal loan, shows analysis of data involving lakhs of users of SimplyCash, the instant loan app powered by the Hero Group.
In the last 12 months, 37% of all instant personal loans disbursed by the firm were taken for home improvement. This was followed by factors like medical emergencies (28%) and marriage and family functions (12%). About 5% of customers took a loan for education, be it for their child’s education or for upskilling their own skills. Other causes included business-related expenses (2%), holidays (2%) and paying off debt (2%).
“The percentage of applicants taking instant personal loans for home improvement has been increasing over the years. It now accounts for 37% of all loans disbursed by us in the last 12 months, a sharp increase from the figure of 28% in the previous year. Most of our customers belong to the millennial generation (those currently below 40 years of age). Our data shows that this segment is now focusing on more serious priorities like home improvement and health, rather than funding lifestyle or recreational needs. This may be the lingering effect of the pandemic, due to which discretionary expenses are still being delayed. The amount of instant personal loans taken by our customers ranges from Rs 50,000 to Rs 1,50,000.” said Prashant Chopra, National Manager, Digital, Hero FinCorp:
The company is seeing a robust demand for digital lending platforms for taking personal loans due to the ease with which funds are disbursed, compared to traditional banking. However, it has cautioned people to go for only trusted apps.
Buoyed by its strong growth trajectory, SimplyCash intends to double its presence to 200 locations across India in the next two years.
About Hero FinCorp
Hero FinCorp, the financial services arm of the USD 10 Billion Hero Group, is one of India’s largest privately-owned Non-banking Finance Companies (NBFC). Originally founded in 1991, as Hero FinLease Limited to serve the financing needs of the Hero Group Ecosystem, the company expanded outwards in 2012, and has since grown its loan book from INR 300 Cr. to approximately INR 30,000 Cr. over the past 10 years. Hero FinCorp today offers a wide range of products and services across Retail, SME, and Corporate Lending segments. Overall, the company serves over seven million customers through its 4,000 plus touchpoints, spread across more than 2,000 locations. Hero FinCorp also has a dedicated home finance arm called Hero Housing Finance which is a 100% subsidiary with an Asset Book of over INR 2,500Cr. and presence across major domestic markets.
Driven by technology, fueled by innovation, and equipped with a vibrant spirit of meritocracy, Hero FinCorp is a passionate team of almost 10,000 individuals working towards one mission: Empowering Every Indian’s Dreams of Upward Mobility. For more information, please visit www.HeroFinCorp.com
Powered by Hero FinCorp, SimplyCash is an instant personal loan app that provides cash loans of up to ₹1,50,000 for both salaried and self-employed individuals. Driven by technology and fuelled by innovation, SimplyCash mobile app is available on Android play stores such as Google Play Store, Samsung store, Xiaomi store, etc. With a widespread presence, SimplyCash currently offers its services in over 90 major locations in India. It is a duly registered trademark and is a loan product offered, managed and operated by Hero FinCorp.