{"id":525,"date":"2025-08-06T00:00:00","date_gmt":"2025-08-06T00:00:00","guid":{"rendered":"https:\/\/www.juniperoites.com\/financetonic\/2025\/08\/06\/swipe-now-cry-later\/"},"modified":"2025-08-06T00:00:00","modified_gmt":"2025-08-06T00:00:00","slug":"swipe-now-cry-later","status":"publish","type":"post","link":"https:\/\/www.juniperoites.com\/financetonic\/2025\/08\/06\/swipe-now-cry-later\/","title":{"rendered":"Swipe Now, Cry Later? Why 27% Of Indians Are Taking Loans To Travel But What\u2019s The Real Price Of That Vacation?"},"content":{"rendered":"

\"Gens<\/p>\n

You must\u2019ve heard your parents say, \u201cZamana badal gaya hai!\u201d And honestly, they\u2019re not wrong, especially when it comes to taking loans.\u00a0For an entire generation, taking on karza (debt) was almost a taboo – something to be avoided unless absolutely necessary. Fast forward to today, and borrowing has not just been normalised, it’s been glamorised. Want a new phone? Swipe. Fancy that Maldives trip? BNPL. From credit cards to Buy Now, Pay Later schemes, India\u2019s youth are funding desires –\u00a0 not just needs – through loans.<\/strong><\/p>\n

And now, this shift in behaviour is clearly visible in the numbers: India\u2019s outstanding personal loan debt is at a record high.<\/a> But what\u2019s driving this borrowing spree? Who\u2019s borrowing and why? And more importantly, at what cost?<\/p>\n

Let\u2019s dig in.<\/p>\n

The Vacation Loan Boom: Easy Travel, Easier Credit<\/strong>
\nAs the festive season rolls in and long weekends fill up your calendar, the idea of a quick getaway becomes hard to resist. But here\u2019s the catch – holidays have become expensive, and not everyone has the savings to match their aspirations. The answer\u00a0 –\u00a0 Loans.<\/p>\n

A 2025 consumer insights survey by Paisabazaar reveals a striking trend: 27% of Indians now take personal loans to fund vacations. That\u2019s more than 1 in 4 people borrowing just to travel – a clear sign of how leisure is being financed more than ever before.<\/p>\n

The surge is being fuelled by younger generations. Among Gen Z (aged 20-30), holiday loan usage jumped from 14% in H1 2023 to 29% in H1 2025. Millennials (aged 30-40) aren\u2019t far behind, leading the charge with 47% of the total holiday loan pie.<\/h5>\n

Interestingly, it\u2019s not just the number of people borrowing,\u00a0 it\u2019s also the size of the loans.<\/p>\n

In 2025:\u00a030% of holiday loans fell in the \u20b91\u20133 lakh range (up from 13% in 2023),<\/p>\n

Loans between \u20b950,000\u20131 lakh jumped from 12% to 20%,<\/p>\n

And even small loans under \u20b950,000 rose sharply from 2% to 15%.<\/p>\n

The demographic – private-sector salaried professionals, making up 65% of the borrowers. With stable paychecks and access to credit, they\u2019re the most likely to swipe now and sort later.<\/p>\n

\"Loans\"<\/p>\n

So, What\u2019s Really Going On?<\/strong>
\nIt\u2019s not just holidays. A deeper behavioural shift is underway.<\/p>\n

A Business Today report notes that 40% of retail loan demand now comes from Indians aged 18\u201330.<\/a> And this comes at a time when India\u2019s household savings are at a 50-year low, while unsecured loans, especially personal loans and credit card debt, are soaring.<\/p>\n

The RBI\u2019s Deputy Governor J. Swaminathan recently flagged the trend, warning that unsecured retail loans have grown at an alarming 33% over the last few years.<\/strong><\/h6>\n

So while vacations might be the shiny surface, what\u2019s happening underneath is a brewing storm, one that could shake the foundation of India\u2019s consumer credit ecosystem.<\/p>\n

Home Loans Plateau, But Big-Ticket Borrowing Still Has a Pulse<\/strong>
\nWhile India\u2019s appetite for credit is growing, not all loan categories are booming equally. Take home loans, for instance.<\/p>\n

The home loan portfolio did clock a steady 13.1% growth, but a closer look reveals something else: new originations have slowed to just 2.7% year-on-year, a significant drop from the 9.9% seen the year before. Add to that a 5.4% fall in volumes, and it’s clear, rising property prices and stricter lending norms are starting to bite.<\/p>\n

Simply put, people still want homes, but fewer are qualifying or taking the plunge. The focus seems to be shifting toward bigger loans for fewer borrowers, rather than a mass-market borrowing frenzy.<\/p>\n

Now for the all grinding question – why are India\u2019s youth drowning in unsecured debt?<\/strong>
\nWhile home loans are slowing, unsecured debt among young Indians is rising fast and it\u2019s not without reason.<\/p>\n

Here\u2019s what\u2019s pushing the younger crowd deeper into a debt spiral:<\/p>\n

1. Mini-Loans, Major Impact<\/strong>
\nFintech apps have made it ridiculously easy to borrow small sums,\u00a0<\/a> as little as \u20b925,000, in just a few clicks. These \u201cbite-sized\u201d loans might seem harmless, but when stacked up, they lead to serious financial strain. The EMI system, with its shiny monthly installment promise, only adds to the illusion of affordability.<\/p>\n

2. Swipe First, Think Later<\/strong>
\nEasy access to credit cards and small-ticket personal loans means even those with thin credit files can borrow instantly. Minimal paperwork, zero collaterals, and \u201cinstant approval\u201d offers are pulling young users in, often before they fully understand the terms.<\/p>\n

3. Lifestyle Creep<\/strong>
\nFrom the latest iPhones to destination weddings, the aspirational lifestyle game is strong. But for many, income levels haven\u2019t caught up. So, they bridge the gap with credit, often to look successful rather than be financially sound.<\/p>\n

4. Rising Defaults<\/strong>
\nThere\u2019s trouble brewing on the repayment front too. According to Business Today, credit card delinquency rates jumped 2.9% as of June 2023, suggesting that many young users are falling behind on dues, a slippery slope toward compounding interest and mounting debt.<\/p>\n

Rise of a New Industry: The \u201cDebt Saviour\u201d Companies<\/strong>
\nWith unsecured loans surging, a new business opportunity has emerged in the form of –\u00a0 Retail Debt Resolution.<\/strong><\/p>\n

These companies step in when things go south, offering:\u00a0Debt consolidation,\u00a0Negotiation with creditors,\u00a0Financial counselling<\/p>\n

Their goal is to help stressed borrowers take back control of their finances. Think of them as the \u201cfirefighters\u201d in a credit-fuelled blaze –\u00a0 though, of course, they come with fees and their own fine print.<\/p>\n

The Last Bit, Tread Carefully<\/strong>
\nAs India dives deeper into a digital, credit-driven economy, both lenders and borrowers need to pause and rethink their roles.<\/p>\n

Lenders must focus on responsible lending – strong KYC, robust credit checks, and not just chasing volume. Borrowers, especially young ones, need to borrow smart, not impulsively. Not every swipe or EMI is worth the long-term cost.<\/p>\n\n

\n\n\t\t\n
    \n\t\t\t <\/ul>\n <\/div> \n","protected":false},"excerpt":{"rendered":"

    You must\u2019ve heard your parents say, \u201cZamana badal gaya hai!\u201d And honestly, they\u2019re not wrong, especially when it comes to taking loans.\u00a0For an entire generation, taking on karza (debt) was almost a taboo – something to be avoided unless absolutely necessary. Fast forward to today, and borrowing has not just been normalised, it’s been glamorised. Want a new phone? Swipe. Fancy that Maldives trip? BNPL. From credit cards to Buy Now, Pay Later schemes, India\u2019s youth are funding desires –\u00a0 not just needs – through loans. And now, this shift in behaviour is clearly visible in the numbers: India\u2019s outstanding personal loan debt is at a record high. But what\u2019s driving this borrowing spree? Who\u2019s borrowing and why? And more importantly, at what cost? Let\u2019s dig in. The Vacation Loan Boom: Easy Travel, Easier Credit As the festive season rolls in and long weekends fill up your calendar, the idea of a quick getaway becomes hard to resist. But here\u2019s the catch – holidays have become expensive, and not everyone has the savings to match their aspirations. The answer\u00a0 –\u00a0 Loans. A 2025 consumer insights survey by Paisabazaar reveals a striking trend: 27% of Indians now take personal loans to fund vacations. That\u2019s more than 1 in 4 people borrowing just to travel – a clear sign of how leisure is being financed more than ever before. The surge is being fuelled by younger generations. Among Gen Z (aged 20-30), holiday loan usage jumped from 14% in H1 2023 to 29% in H1 2025. Millennials (aged 30-40) aren\u2019t far behind, leading the charge with 47% of the total holiday loan pie. Interestingly, it\u2019s not just the number of people borrowing,\u00a0 it\u2019s also the size of the loans. In 2025:\u00a030% of holiday loans fell in the \u20b91\u20133 lakh range (up from 13% in 2023), Loans between \u20b950,000\u20131 lakh jumped from 12% to 20%, And even small loans under \u20b950,000 rose sharply from 2% to 15%. The demographic – private-sector salaried professionals, making up 65% of the borrowers. With stable paychecks and access to credit, they\u2019re the most likely to swipe now and sort later. So, What\u2019s Really Going On? It\u2019s not just holidays. A deeper behavioural shift is underway. A Business Today report notes that 40% of retail loan demand now comes from Indians aged 18\u201330. And this comes at a time when India\u2019s household savings are at a 50-year low, while unsecured loans, especially personal loans and credit card debt, are soaring. The RBI\u2019s Deputy Governor J. Swaminathan recently flagged the trend, warning that unsecured retail loans have grown at an alarming 33% over the last few years. So while vacations might be the shiny surface, what\u2019s happening underneath is a brewing storm, one that could shake the foundation of India\u2019s consumer credit ecosystem. Home Loans Plateau, But Big-Ticket Borrowing Still Has a Pulse While India\u2019s appetite for credit is growing, not all loan categories are booming equally. Take home loans, for instance. The home loan portfolio did clock a steady 13.1% growth, but a closer look reveals something else: new originations have slowed to just 2.7% year-on-year, a significant drop from the 9.9% seen the year before. Add to that a 5.4% fall in volumes, and it’s clear, rising property prices and stricter lending norms are starting to bite. Simply put, people still want homes, but fewer are qualifying or taking the plunge. The focus seems to be shifting toward bigger loans for fewer borrowers, rather than a mass-market borrowing frenzy. Now for the all grinding question – why are India\u2019s youth drowning in unsecured debt? While home loans are slowing, unsecured debt among young Indians is rising fast and it\u2019s not without reason. Here\u2019s what\u2019s pushing the younger crowd deeper into a debt spiral: 1. Mini-Loans, Major Impact Fintech apps have made it ridiculously easy to borrow small sums,\u00a0 as little as \u20b925,000, in just a few clicks. These \u201cbite-sized\u201d loans might seem harmless, but when stacked up, they lead to serious financial strain. The EMI system, with its shiny monthly installment promise, only adds to the illusion of affordability. 2. Swipe First, Think Later Easy access to credit cards and small-ticket personal loans means even those with thin credit files can borrow instantly. Minimal paperwork, zero collaterals, and \u201cinstant approval\u201d offers are pulling young users in, often before they fully understand the terms. 3. Lifestyle Creep From the latest iPhones to destination weddings, the aspirational lifestyle game is strong. But for many, income levels haven\u2019t caught up. So, they bridge the gap with credit, often to look successful rather than be financially sound. 4. Rising Defaults There\u2019s trouble brewing on the repayment front too. According to Business Today, credit card delinquency rates jumped 2.9% as of June 2023, suggesting that many young users are falling behind on dues, a slippery slope toward compounding interest and mounting debt. Rise of a New Industry: The \u201cDebt Saviour\u201d Companies With unsecured loans surging, a new business opportunity has emerged in the form of –\u00a0 Retail Debt Resolution. These companies step in when things go south, offering:\u00a0Debt consolidation,\u00a0Negotiation with creditors,\u00a0Financial counselling Their goal is to help stressed borrowers take back control of their finances. Think of them as the \u201cfirefighters\u201d in a credit-fuelled blaze –\u00a0 though, of course, they come with fees and their own fine print. The Last Bit, Tread Carefully As India dives deeper into a digital, credit-driven economy, both lenders and borrowers need to pause and rethink their roles. Lenders must focus on responsible lending – strong KYC, robust credit checks, and not just chasing volume. Borrowers, especially young ones, need to borrow smart, not impulsively. Not every swipe or EMI is worth the long-term cost.<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"postBodyCss":"","postBodyMargin":[],"postBodyPadding":[],"postBodyBackground":{"backgroundType":"classic","gradient":""},"site-sidebar-layout":"default","site-content-layout":"","ast-site-content-layout":"default","site-content-style":"default","site-sidebar-style":"default","ast-global-header-display":"","ast-banner-title-visibility":"","ast-main-header-display":"","ast-hfb-above-header-display":"","ast-hfb-below-header-display":"","ast-hfb-mobile-header-display":"","site-post-title":"","ast-breadcrumbs-content":"","ast-featured-img":"","footer-sml-layout":"","theme-transparent-header-meta":"","adv-header-id-meta":"","stick-header-meta":"","header-above-stick-meta":"","header-main-stick-meta":"","header-below-stick-meta":"","astra-migrate-meta-layouts":"default","ast-page-background-enabled":"default","ast-page-background-meta":{"desktop":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"ast-content-background-meta":{"desktop":{"background-color":"var(--ast-global-color-4)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"var(--ast-global-color-4)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"var(--ast-global-color-4)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"footnotes":""},"categories":[22],"tags":[141,142,143,125,144,145],"class_list":["post-525","post","type-post","status-publish","format-standard","hentry","category-blogs","tag-credit-cards","tag-gen-z-and-loan-culture","tag-holiday-loans","tag-loans","tag-personal-loans","tag-unsecured-loans"],"_links":{"self":[{"href":"https:\/\/www.juniperoites.com\/financetonic\/wp-json\/wp\/v2\/posts\/525","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.juniperoites.com\/financetonic\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.juniperoites.com\/financetonic\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.juniperoites.com\/financetonic\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.juniperoites.com\/financetonic\/wp-json\/wp\/v2\/comments?post=525"}],"version-history":[{"count":0,"href":"https:\/\/www.juniperoites.com\/financetonic\/wp-json\/wp\/v2\/posts\/525\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.juniperoites.com\/financetonic\/wp-json\/wp\/v2\/media?parent=525"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.juniperoites.com\/financetonic\/wp-json\/wp\/v2\/categories?post=525"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.juniperoites.com\/financetonic\/wp-json\/wp\/v2\/tags?post=525"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}