Masses are inclined towards purchase of consumer durables through loans, with the home appliances loans rising from just 1% in 2020 to 37% in 2024, a recent survey said.

A survey by Home Credit India said borrowing for business expansion surged from 5% to 21% over the same period, indicating a robust entrepreneurial spirit fueled by government support for micro, small, and medium enterprises (MSMEs).

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The report suggested that the home renovation borrowing also saw an increase, growing from 9% in 2022 to 15% in 2024, as consumers focus on improving their living conditions and investing in long-term assets.

Borrowing for education loans remained stable at 4% from 2022 to 2024, while borrowing for weddings rose gradually from 3% to 5%.

It highlighted that the borrowing for medical emergencies decreased significantly from 7% in 2020 to just 3% in 2024, likely due to improved financial planning and access to healthcare options.

65% of consumers prefer app-based banking over browser-based services (44%), the report highlighted.

This trend is particularly pronounced among Millennials (69%) and Gen Z (65%). Metropolitan areas lead in app usage at 71%, while Tier 2 cities follow closely at 69%. Despite a drop in online shopping usage from 69% in 2021 to 48% in 2023, it rebounded slightly to 53% in 2024, driven by women (60%) and younger demographics.

27% of middle-class borrowers are familiar with the technology, and 38% find chatbots easy to use. WhatsApp has emerged as a key communication channel, with 59% of borrowers receiving loan offers via the platform, and trust in these offers growing from 24% to 26% in 2024.

The report said embedded finance is gaining traction, with 43% of consumers showing interest, particularly among Gen Z (55%).

EMI cards remain the most popular credit tool among lower-middle-class borrowers, preferred by 43% for their trustworthiness and speed of disbursal. Credit cards and digital lending apps follow as secondary options.

Interestingly, the report highlighted that 48% of borrowers still prefer visiting physical branches, 30% opt for online applications.