PaySense, an online lending app, enables financially underserved users to fulfil their dreams and responsibilities through short-term personal loans. Over the past 2 years, over a million customers have downloaded the PaySense app to buy electronics, fund education and cover medical expenses.

With Diwali just around the corner, PaySense, a top lending app, recently conducted a survey to gauge the readiness of Indians for Diwali. With Diwali spends at an all time high, this survey sheds light on how prepared India is for a festival that sees the highest traction in terms of gifting. The festive season in 2017 garnered a total of 3.2 billion USD in sales from e-commerce segment itself in the country, in comparison to 2.2 billion USD of sales for the industry during 2016 festive season. The uptick trend of sales figures is expected grow along the similar lines this year as well.

Not ready for Diwali, but personal loan presents an option

Alarmingly, over 38% of respondents felt that they don’t have enough money to buy gifts for their friends and family. Although out of these 38% who don’t have enough money to get perfect Diwali gifts for their family, 21% are willing to take a personal loan to make their family happy. Surprisingly, out of the 62% respondents who feel that they are have enough money to buy a gift, 49% would still be willing to take a loan.

Among the survey respondents, Millenials are 21% more likely than GenZ, to take a personal loan to make their family happy this Diwali.



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Millennials willing to forego supporting parents expenses and home loan EMI

From family to personal expenses, 59% of Millennials are willing to let go of crucial things like supporting their parents and paying their home loan EMI to get that perfect gift. Shockingly, 19% of the respondents would not send money home to their parents, while 15% are fine skipping their home loan EMI as long as they can buy that perfect gift.  

PaySense Survey: What are Indians willing to sacrifice to get the perfect Diwali gift?

Other trends and insights

While the major survey results reflect the prevalence of financially irresponsible decision, PaySense survey uncovered some other interesting insights and trends as well –

  • 9% people are willing to skip regular medical check-ups to buy Diwali gifts
  • 8% people will give up their daily habit of chai-sutta for a year to buy Diwali gifts
  • 49% of respondents who believe that they have enough money to make their family happy this Diwali are still willing to take a personal loan to buy their family the perfect gift.
  • 23% of respondents who don’t have enough money will consider taking a personal loan to get Diwali gifts for their family.
  • 77% of respondents who don’t have enough money are also reluctant to take a personal loan to buy the perfect Diwali gift for their family.
  • Out of the 77% respondents who don’t have enough money for Diwali gifts and are opposed to taking personal loans, 25% are also not willing to give up anything to get the perfect Diwali gifts for their family.
  • For those who will consider taking a loan to buy Diwali gifts for family, Karnataka (22% of respondents), while Northern cluster of states (including Delhi, Haryana and Punjab) combinedly show an inclination of mere 15%, where grand Diwali celebrations are more popular.
  • 25% respondents of Gen Z will forego sending money to their parents in favour of buying Diwali gifts for their family, while 22% respondents in the same age group will defer a home loan EMI.

From their users and business insights, PaySense has also seen a two times increase in number of loans taken to buy electronics during Diwali Season. Home renovation and home appliances loans also become quite prominent during the festive months.

About the survey sample

PaySense survey was conducted on a randomised sample belonging to the key metros of namely Delhi NCR, Mumbai, Bangalore, Hyderabad, Chennai and Kolkata, and as many as 15 states across the country. The study comprises of nearly 400 responses from all age groups between 21 – 60 years across both genders to understand their gifting habits and spending patterns around Diwali.

As per Prashanth Rangnathan, CEO and Co-founder – PaySense, “While consumer spending last Diwali was low due to multiple economic factors such as GST and Demonetisation, it is expected to scale up again this Diwali. We have seen an 85% growth in availing personal loans for small and large ticket purchases from the metros so far this year. Technology has enabled users to avail low-interest credit without any credit history. Hence, Indian consumers are welcoming the idea of taking a personal loan even for buying gifts.”

With affordable EMI options, quick personal loans have made it easy for consumers to go shopping without breaking the bank. A Business Standard report states, “As per RBI Data, 96% of new bank loans during FY18 are personal loans.” No wonder then, the Indian consumer is leveraging the power of technology in upgrading their lifestyles and finances, without having to compromise on either. The business stats around Diwali, combined with this survey opens up a great opportunity for lending companies, apps and aggregators in India to engage with the consumers.

Named as one of the top 100 fintech innovators of 2018 across the world by KPMG and H2 Ventures, PaySense provides short-term loans ranging from  Rs 5,000 all the way to Rs 2,00,000 and aims to be a risk assessment provider for 16 Mn Indian households currently underserved by the lenders. The company provides offers for aspirational e-commerce purchases, family vacations, home renovations, and a medical emergency. Currently, Paysense is present across 30+ cities in India including Tier 1 and 2 cities. PaySense currently has over 1 million downloads and 4.1 star rating on Android Play Store.