Young and tech-savvy Indians are much ahead of the previous generations when it comes to borrowing or even availing the platform for a new asset class as an investor
Millennials are dominating as the most influential cohort as both borrowers and lenders on peer-to-peer (P2P) lending platforms according to study done by P2P lender LenDenClub.
According to the report by LenDenClub, young and tech-savvy Indians are much ahead of the previous generations when it comes to borrowing or even availing the platform for a new asset class as an investor. Millennials belonging to the age group of 21-30 years were the most active as both borrowers (56%) and lenders (54%) on its platform. This was followed by the cohort belonging to the age group of 31-40 years accounting for 37% in case of borrowers and 33% in case of lenders. India’s silicon city, Bengaluru, topped the chart in terms of people having the highest credit demand. Interestingly, the highest number of lenders too hailed from the tech city of Bengaluru. Other major lending and borrowing markets were Mumbai, Hyderabad, Pune and Chennai, showing a clear dominance of west and south.
Salaried professionals ranging from CXOs to mid-managerial level, topped the chart as investors on the platform. The report further stated INR 1.81 lakhs was the average investment amount on the platform while INR 50,000 to 1 lakh was the most preferred amount among lenders, accounting to approximately 50% of the pie in terms of value. Owing to the festival season, November (2020) and December (2020) and February (2021) were the top three months when demand for credit was the highest. Whereas, during Apr-Jun 2020, the demand for credit was the least.
Bhavin Patel, Co-founder & CEO, LenDenClub said “Covid-19 has accelerated digital penetration and uptake across every industry, and the lending sector too, has seen transformation beyond imagination. During the global health crisis, medical emergencies continued to be the top reason for borrowing. Interestingly, millennials also actively participated as investors availing P2P lending as an aspirational asset class offering lucrative returns. Thanks to e-commerce and penetration of new-age technology which has built an all-new tech empowered segment of Indians across tier-II and tier-III cities from where we witnessed fresh bouts of demand.”