Two in every three Indians are willing to take a loan for financing their personal needs and upgrading their lifestyle, reveals a study by Home Credit India. Interestingly, more and more people are coming forward to take a loan to fulfil their family needs and their wishes. Most of the loans are taken for small-ticket purchases such as television, refrigerator or mobile phones. Loan for two-wheelers, personal expenses, house, car and gold are the other popular categories.

The survey which commissioned nearly 2,600 people across 12 cities revealed that over half of the public is willing to take a loan for the betterment of their lifestyle.

In most of the cities, taking a loan for personal family needs was at the top with Patna (61%), followed by Lucknow (58%) and Nagpur (56%).

Majority of the public (34%) turned to their family or friends on a decision involving taking a loan rather than seeking advice from a financial advisor.

The data provided an insight into how the country’s borrowing habits have changed from the past. Another data by RBI revealed that Indians were borrowing far more than what the growth in their income can warrant, causing the sharpest growth in indebtedness. From a time where people were reluctant to take a loan to a time where the majority of the public is ready to finance their personal needs through a loan, we have come a long way. There is a still a part of the population which keeps away from taking a loan, says the study.

The study also looked into a common man’s habits of taking a loan which showed that majority of the public (34%) turned to their family or friends on a decision involving taking a loan rather than seeking advice from a financial advisor.