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“The survey revealed that 77 per cent of Indians are optimistic of an economic recovery and business revival (in less than 12 months); 27 per cent believe the turnaround could happen in the next three months. These were two of several findings that captured the current mood of the nation during the festive season,” IndiaLends said in a release.
Also, 22 per cent of those surveyed said they expect a revival in the next three to six months, while 28 per cent felt it could take anywhere between six months to a year, an indication that people were still weighing in on the pandemic.
Further, as many as 71 per cent of the respondents said they were planning to take a personal loan in the next three to six months. They cited two-and four-wheelers, business startups, household durables, electronic gadgets and home renovation as the mains reasons for personal loans.
At least 7 per cent of the respondents said they would opt for a loan to pay for upskilling courses, which points to the impact of COVID-19 on jobs and the need to utilise free time to acquire new skills; while 31 per cent of those surveyed said they would use the loan to start their own business, IndiaLends added.
“The economy is slowly but steadily recovering from the coronavirus pandemic and is getting back on the growth trajectory. There are clear signs of a business revival and consumer confidence. This is evident in the uptick in loan applications from enterprises such as MSMEs as well as individuals, including millennials, and the many reasons they are taking those loans.
“Our latest survey reveals that businesses and individuals are keen to return to a new normal life and start 2021 on a positive note,” IndiaLends Founder and CEO Gaurav Chopra said.
Survey’s other findings include an expected increase in household expenses towards consumer durables, such as washing machine and dishwasher, by 46 per cent of the respondents. About 11 per cent said they would opt for a personal loan to buy these appliances.
With people spending more time at home, almost 38 per cent of the respondents said they would consider getting their home renovated in the coming months, and 15 per cent said they would take a loan for the same.
Following the closure of schools, colleges and many offices since March 2020 and the consequent increase in home-based online education and work from home, some 70 per cent of the respondents said they were now spending more on electronic gadgets for their children, namely smartphones, tablets and laptops.
Further, with the dip in wedding and travel expenses, there is a further impetus to the idea of millennials considering low-key weddings and budget-friendly travel options in the near future.
The IndiaLends survey covered both salaried and self-employed Indians in the 18-55 plus age group, residing across top tier-I and II cities.
The respondents comprised 41 per cent of millennials in the 25-35 age group, thus making it highly youth-centric, it added.