Our Bureau
Mumbai
In a recent study it was noted that Indians are taking credit funds moreover to enjoy their travels than for their house renovations or medical needs. It was revealed in a report by Paisabazaar that Holidays have taken over medical needs and home renovations as the biggest reasons for taking personal loans.
The report by Paisabazar was based on a survey conducted of over 5,700 respondents in 97 cities. The findings through the survey revealed that in the first half of this year (2025) around 27% borrowers took out a loan to fund a vacation. This was 6% higher from the survey 2 years ago in 2023 when 21% borrowers took loans for their holidays.
At this rate, loans taken for travels lie way ahead of loans for home improvements which were taken by 24% of borrowers, for credit card repayments by 11% borrowers, for medical expenses by 9.6% borrowers, for education by 6.1% borrowers and for weddings by 5.4% borrowers. This growth in loan rates showcases a wider rise in travels by Indians all across the country.
It was reported that as per the data provided by the government, in the financial year 2024, more than 3 crore Indians travelled abroad and the number has only surged upwards in FY25. The data provided by the Reserve Bank India indicate that Indians spent about $17 billion on foreign travels in FY25 as of now which accounts to somewhere around 57-60% of the total outward remittances during the year.
The Chief Executive of Paisabazar, Santosh Agarwal has stated that the numbers show clearly that the citizens of India have shown a growth in willingness to use credit cards to support their lifestyle and needs.
