More than 50 per cent of the borrowers in India have preferred EMI cards during shopping or for any credit purpose, a survey by Home Credit India stated. The How India Borrows 2022 study was conducted across 16 cities including Delhi-NCR, Mumbai, Kolkata, Chennai, Bengaluru, Lucknow, Patna, Ranchi and Chandigarh.

The study included 1,500 borrowers between 18 and 55 years of age having an average income of 30,000 per month. The study carried out to understand the ‘rapidly evolving consumer borrowing behaviour’, stated that 75 per cent borrowers took credit to buy consumer products, home appliances, home renovation and business purposes.

Out of these, 50 per cent of the borrowers preferred EMI cards for shopping or other credit purposes. The credit cards were used by 25 per cent borrowers while the ‘Buy Now, Pay Later’ credit platform just got 10 per cent takers.

According to the Home Credit India survey, the borrowers found EMI cards trustworthy, with timely approvals & quick disbursals. On the other hand, 60 per cent of the borrowers, mainly millennials or Gen Z from the tier 1 and tier 2 cities showed interest in ‘embedded finance’ which involves e-commerce shopping to be converted into EMIs for affordable financing.

The borrowers spanned across cities like Bengaluru (82%), Patna (74%), Lucknow (69%), Ludhiana (68%) and Jaipur (68%), the company said in a statement.

The survey stated that 50 per cent of the borrowers from cities like Jaipur, Pune, Ludhiana, Lucknow and Chandigarh expressed willingness for a loan application through WhatsApp chat. Chatbots and mobile banking were also the preferred modes for filing loan application.

According to the survey, 40 per cent of the borrowers said they wanted to be financially educated in fields like personal finance from renowned organisations.


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