More than 20% of customers who took out personal loans from January to June 2023 used the money to travel, according to a survey conducted by online loan platform Paisabazaar. The survey revealed that the desire to travel increased in the second quarter of the year compared to the first quarter. Between January and March, 16% of borrowers took out vacation loans, while by the June quarter, that number had risen to nearly 24%.
Of the participants surveyed, 21% stated that they borrowed money for a vacation, while the largest group (31%) said the funds were intended for home renovations. Borrowers looking to refinance other loans, including credit card debt, accounted for 10%, while 9% used the loans to cover medical bills. The remaining 29% of borrowers used the money for expenses related to weddings, education, or business.
In terms of individual loans, housing and loans secured against property were the most common, followed by auto and education loans. Other unsecured loans fell under the category of personal loans. Salaried individuals accounted for 74% of holiday loan borrowers, while self-employed professionals made up 14%, and businessmen accounted for 12%. Popular international destinations for the loans included Dubai, Thailand, and Europe, while Goa, Himachal, and Uttarakhand were top choices within the country. The survey also revealed that the highest demand for holiday loans in the first half of 2023 occurred between January and June, coinciding with school and college breaks in most parts of the country.
Naveen Kukreja, co-founder and CEO of Paisabazaar, stated, “Over the years, we have seen consumers getting more confident and comfortable in accessing credit for various needs and aspirations, including travel and vacation. This is positive for the overall ecosystem and will contribute to the country’s goal of inclusiveness.”
