CASHe Report: UPI Gains Traction as the Second Most Popular Repayment Method for Digital Loans
- ByStartupStory | April 6, 2023
CASHe, India’s leading credit-led, AI-driven financial wellness platform, has released the Financial Mood of the Millennials 2022-23 report, providing unique insights into the borrowing, spending, and investing habits of its 540,000 customers. The report sheds light on the preference of millennials for credit lines (84%) over personal loans (14%) and buy-now-pay-later (2%) options. Additionally, satchetised loans of less than Rs 10,000 are the preferred option for 49% of millennials.
The report also highlights a significant demand for digital credit products from bureau-based prime (44%) and near-prime (38%) millennials, indicating a need for unsecured and hassle-free financial services that are easily accessible to all.
The top reasons for availing short-term digital credit are unforeseen medical and monthly expenses, followed by shopping, home renovation, and education. Bangalore leads all the cities in India for credit demand, followed by Hyderabad, Pune, Ghaziabad, and Gurgaon. Interestingly, West Bengal, Punjab, Gujarat, Assam, and Kerala represent the states from where millennials with the highest bureau scores have availed credit from CASHe.
The report also highlights the preferred repayment methods of customers, with e-NACH (36%) and UPI (27%) being the top two choices. Furthermore, the report notes an uptick of 1% in women borrowers compared to previous years.
The report also provides interesting insights into millennial investment habits using the customer base of its Sqrrl investment platform. The report shows that 68% of millennials seek assistance from financial advisors for making investment decisions, while 45% trust social media as a prime source for such decisions.
Despite 37% of millennials being financially dependent on their parents, the majority of 63% are financially independent. SIP has emerged as the most popular investment option for online investors, accounting for 35% of their investing activities. There is also growing interest in digital gold (18%), tax-saving products (15%), goal-based investments (10%), real-estate (9%), and fixed deposits (5%). The report further reveals a growing consciousness among millennials to start saving early for their post-retirement life, with more than 33% of millennials believing in saving 20% of their annual income to become financially secure for retirement.
Speaking on the release of the FMOTM, 2022-23 Report, Mr. V. Raman Kumar, Founder Chairman, CASHe, said, “The report offers unrivaled access to a large sample of data covering over 540,000 millennials – the insights provided here are valuable to policymakers, financial institutions, and researchers to better understand the borrowing, spending and saving habits of over 125 million credit-starved and underbanked urban mass of millennials. The India consumption story is defined by the credit and spending habits of this cohort. CASHe is committed to building its entire financial wellness business around catering to this cohort in order to create a financially inclusive Bharat in the coming years.”
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