Millennial's Borrowing Trend

Millennial age came during the time of transition in both the economy and in the landscape of higher education. College costs have risen significantly, four-year college increasing 68% since the 1999-2000 academic year. Most of the millennial start their working lives with a lot of debt. The sad reality is that debt is a modern-day necessity. According to the YouGov-Mint Millennial Survey, levels of indebtedness for millennial are not alarmingly high. Certain reports suggests that 23% millennial in India borrows for travel and lifestyle expenses with an average frequency of repeat loans is 60 days. Reasons can only be explained by easy access to borrowing, along with low levels of financial literacy.

Still the data is not fully reliable as there are many other factors which are to be taken into consideration also there is a different side of story where millennial are much more financially savvy and starts investing in a year after working.

The research shows that 70% of the loan are repeated with an average frequency of 60 days. 57% of the millennial prefer to borrow for the period of one month or less whereas 29% for three months and 14% for six months. The major chunk of loan goes to medical expenses which is ~31%.

Metro ranked in order of credit demand:

1. Bengaluru
2. Mumbai
3. Hyderabad
4. Delhi
5. Chennai
6. Kolkata