Next year, India will have the youngest population, with a median age of 29. Over 40 crore millennials already account for a third of India's population and by next year, millennials will make up for approximately 50% of the working population.
Businesses, too, are increasingly shifting their focus towards the millennials. Innovative products and immersive experiences are becoming the new normal. Millennials are no longer content with regular work-home routine. There's a growing desire to connect with the larger world by acquiring experiences, pursuing hobbies and indulging in adventures. These go a long way in shaping an individual's personality. There is a lot of social research that has been done to prove that such experiences have a direct and positive impact on the personal and professional lives of an individual.
However, early on in the careers, with an average salary of around Rs 30,000, it becomes extremely difficult for the millennials to meet household expenses as well as explore and pursue passions. But with the advent of new-age fintech players, there's no reason why millennials should curb their interests. Informed decisions and smart financial planning ensure that they make their dreams a reality.
Here are six such loans that every millennial can opt for which are designed to meet different financial needs in the millennial life-stage. And in order to avail these loans, all that is needed is a salaried job of Rs 30,000 a month.
Rental deposit loan: In the first few years of career, millennials are bound to undertake a few internships, shift a few jobs. All this requires moving from one city to another, which sounds exciting to anyone. However, as millennials shift frequently, the burden of rental deposit loan increases, particularly in metropolitan cities. For this, it's best to take a rental deposit loan that does not hamper one's choice of apartment or dent their savings because all one has to do is to pay the monthly interest to the lender, the principal amount is deposited to the landlord, and is paid back to the lender at the end of the tenure.
Premium bike loan: With new cities comes the opportunity to travel to places yet to be discovered. What better way to do that than on a bike? Be your own boss, charting the uncharted route. While there are a lot of bike rental companies available today, it's best to own a bike, as over time as you use it, you become accustomed to it and are able to navigate in difficult terrains, making bike riding an all-new skill as well as a new experience for you. Simple premium bike loans are available today where the monthly instalment repayment is as less as Rs 1,500 per lakh of the principal loan amount.
Holiday loan: Not all holidays can be achieved on a bike. Some need extensive travel and planning. Whether it's a trek into the Himalayan terrain or going for your first international holiday, it is important to make your travel experience wholesome and fulfilling. Food, adventure, culture and learning a new language are all beautiful aspects of travel, which can be life-changing. Since all of these come at a cost, a holiday loan can be a preferred mode of choice that ensures you're not running out of money or over-spending your credit card limit.
Wedding loan: There's never an end to how many elements you desire for your wedding. After all, it's the most important day of your life. A bachelor party, the best photographer of the town, an array of food choices for your guests, a gorgeous getaway for your honeymoon; the list is endless. Wedding loans can help you achieve all of this and are preferable over bank loans, as you have to pay only interest for first few months, allowing you to soak in the marital bliss and settle down in your new life. The fixed EMI loan repayment can wait for a while, and you can carry on daily expenses without adding any additional burden on your new life.
EMI-free loan and advance salary loan: There are also loans which are flexible and can be availed for any need. So, whether it's to pursue a new hobby or a course, clear a debt or help with household expenses, EMI-free loan and advance salary loan are great options. The advance salary loan gives a credit facility of up to 2.5 times your net salary, available for a tenure of three to twelve months. With an EMI-free loan, only the interest amount is payable every month whereas the repayment of the principal amount can be done once every six months.
There's a loan for every millennial need today. All you need to do is dare to dream, and make that a reality.
The writer is co-founder and chief technology officer, LoanTap