There's a significant shift in borrowing habits and reasons. Previously, loans were primarily for homes, cars, weddings, or business investments. Now, the younger generation, focused on experiencing life, prioritizes travel and experiences over asset investments.

Personal loans for travel have surged in recent years. A recent report indicates that one in four individuals has taken a travel loan in the past six months. This trend is expected to continue into 2025. Young people borrowing to visit beautiful cities and famous destinations has become commonplace.

Cities like Delhi, Hyderabad, Mumbai, and Bengaluru lead in travel loan applications. For instance, 35% of Delhi's travel loan takers use it for hotel accommodations and local sightseeing. This trend isn't limited to metros; smaller cities are also witnessing a rise in travel loans.

Travel from cities like Lucknow, Agra, and Jaipur to major metros is increasing. Given the higher costs in bigger cities, borrowing for travel expenses is becoming standard. This trend is spreading to smaller towns as well.

65% of travel loan borrowers are private sector employees, while 17% are self-employed. The 30-40 age group dominates, followed by the 20-30 age group. Goa, Kashmir, and Himachal Pradesh are top domestic destinations. For international travel, 44% choose Southeast Asia.

Loan amounts vary. 30% borrow Rs 1-3 lakhs, 20% borrow Rs 50,000-Rs 1 lakh, and 19% borrow Rs 3-5 lakhs. Additionally, 31% take loans for home renovations. Experts believe banks will profit from this trend as lifestyles and priorities evolve.

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