Indians Are Borrowing To Purchase Smartphones In 2024: report

As remote work and online education make technology an essential aspect, consumers are borrowing at a much rapid pace to purchase consumer durables in 2024. A report has revealed that borrowing for smartphones and home appliances has skyrocketed to 37 per cent in 2024, a sharp rise from just 1 per cent in 2020.

The study titled ‘How India Borrows 2024’ by Home Credit India stated that while most of the loans were taken for buying consumer durables, the areas of business and housing renovations also attracted the borrowings.

“Purchasing smartphones and home appliances became the leading reason for borrowing, rising sharply from just 1 per cent in 2020 to 26 per cent in 2021 and peaking at 53 per cent in 2022… The surge highlights a strong demand for digital and home technologies, driven by the growing need for connectivity and convenience in an increasingly digital world,” as mentioned in the report.

The borrowing to expand or start a business saw a marked increase, rising from 5 per cent in 2020 to 28 per cent in 2021. The report mentioned that the government’s support for micro, small and medium enterprises (MSMEs) through credit schemes and subsidies likely encouraged entrepreneurial activity during the period.

As per the report, borrowing for home renovation and construction showed consistent growth, rising from 9 per cent in 2022 to 15 per cent in 2024. This shows a desire for improved living conditions. Education loans remained stable at 4 per cent from 2022 to 2024, indicating a sustained focus on personal development and investment in children’s education.

Similarly, borrowing for weddings saw a gradual increase from 3 per cent in 2021 to 5 per cent by 2024. The report stated that medical emergencies, which were once considered a significant reason for borrowing (7 per cent in 2020), have seen a steep drop at 3 per cent in 2023 and 2024.