Slowdown or hiring freeze, Indians still want loans. Read what they need it for

The demand for individual loans remains strong despite fears of a slowdown. According to a survey done by Moneyview, a Bengaluru-based financial services platform, 71% of respondents plan to take a loan between Rs 30,000 to Rs 2,00,000, underlining the continued need for financial assistance.

Among those planning to take a loan, 24% aim to invest in business, 15% require funds for medical emergencies, and another 15% intend to use the loan for home renovation or construction. 

Occupation and designation statistics reveal that among the 5,000 survey participants, 61.52% of loans were taken by salaried individuals and 38.48% by self-employed in 2023. Across cities, 19.98% of the loans went to Tier 1, 12.69% to Tier 2, and a substantial 66.93% to Tier 3 areas. Additionally, 13.98% of females took loans, contrasting with a higher percentage of 86.01% among males this year. 

The 2023 Consumer Credit Survey captured responses from a diverse group of individuals, providing valuable insights into credit habits, loan aspirations, and key factors influencing financial decisions.

Speaking on the survey, Prasanth Naidu, Chief Marketing Officer, Moneyview, emphasized the significance of credit awareness and sound financial planning. The survey revealed increased credit score monitoring and the fluid nature of individual financial objectives. 

Moneyview’s survey showed that 40% of respondents checked their credit scores monthly, and 50% received suggestions to boost their credit scores free of charge. The survey also highlighted the preference of participants when choosing a lender, the purpose and awareness mediums for availing loans, and the regularity of credit score checks. 

Key findings

• 40% of respondents diligently check their credit scores every month, highlighting a growing awareness of the importance of credit health. 
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• Half of the participants (50%) reported receiving suggestions from various platforms to enhance their credit scores at no cost, reflecting a proactive approach towards credit management
   
• 26% prioritize positive ratings when choosing a lender, while 29% focus on low processing fees, 48% consider a low rate of interest, 31% seek high loan 
   
•  25% value instant approvals, 21% prioritize quick disbursements, and 16% favor a completely online process.
   
• 24% aim to invest in business, 15% require funds for medical emergencies, and another 15% intend to use the loan for home renovation or construction
   
• 88% of respondents affirmed their regular practice of checking their credit scores without fail
   
• Report also signifies concerns of frauds/loans availed on customers’ name without their consent, hence checking credit report frequently becomes an important reason.
   
• Communication channels, such as WhatsApp/Text messages and emails from various platforms, emerged as the primary source of credit score awareness for 34% of respondents. Google/Online Search accounted for 18%, and recommendations from friends and family contributed to 12%