Increasing pressure on personal loan: People forced to pay for treatment and necessary expenses, revelations in the report

in india The trend of taking personal loan is increasing rapidlyespecially Medical emergencies and necessary expenses For. Rising health costs, limited health insurance and fast loan processes are pushing people into debt. Paisabazaar report states that Dependence on personal loan is more in urban areas than in rural areas Is.

Personal Loan for Medical Emergency

‘The Personal Loan Story‘ according to the report, Medical emergency is the biggest reason Is. About 11% people took loan for health expenses. This dependence is more in cities. in this report Survey of 2,889 borrowers in 23 cities to be done.

• In tier-1 cities 14%in Tier-2 10%and in Tier-3 8% People take loans for medical needs.
• Despite being insured, due to conditions like co-payment and sub-limit, people turn to fast loans।
• Loans without guarantee and available immediately First choice of borrowers Have become.

Loan for essential expenses and lifestyle expenses

• 48% people Loans are taken for essential needs like daily expenses, home repair or marriage.
• 36% people take loan for lifestyle upgrade, and 16% people For business investment.
• Trend of taking loans for daily needs in Tier-3 cities 2.4 times more Is.
• Close to middle-income class (7.5–10 lakh annual income) 40% people take loans for lifestyle expenses।

For weddings and big life events in tier-3 cities 11% And in tier-1 cities 14% People take loans.

Changing habits according to city and income group

• Impulse Borrowing Increasing: 25% people take loan without planning; This in Gen Z 31% Is.
• 32% people online channel take loan from, while 68% people bank branch go in.
• NBFC and Fintech Apps through 15% loan Are being taken.
• salaried class mainly aspirational expenses Takes loan for Rs., whereas loan disbursement in non-salaried category Needs, Lifestyle and Business Objectives is approximately equal.

increasing Medical costs and limited insurance People are dependent on personal loans. this loan gives quick reliefBut Correct financial planning and awareness If not, it can also prove to be a trap for debt.