As we all know, millennials have entered the contemporary workforce in droves and make up one of the biggest customer bases for industries in a variety of sectors. The banking and financial services sector is no different. While millennials do have requirements for more conventional lending products like home loans, car loans, personal loans and education loans, they now resort to several new-age products in order to take care of highly specific requirements. As a result, several financial institutions and other lenders have come out with such innovative types of loans which can actually benefit millennial customers greatly.
Today’s young customers do not really wish to wait it out till they are approaching retirement for finally purchasing a high-end two-wheeler or going on a foreign vacation. They would rather fulfil these goals first with the help of specially tailored financial products. Here’s taking a look at some of the most unique types of loans on offer for younger customers in India. Of course, to find these loans, you will have to do a little search online but that’s about it!
- Rental Deposit Loans– These loans are as unique as it gets! Many young customers often have to shift to newer Indian cities due to professional transfers, new employment opportunities and the like. As a result, they naturally have to look for good rental accommodation near their places of work. This necessitates putting the security deposit for 3-6 months which can be quite a hefty sum in metro cities. This is one problem that is solved with rental deposit loans. Thus, young professionals can easily pay deposits and get flats on rent without having to deplete their own hard earned savings. The interest on the loan is not that big and professionals can actually offer even higher deposits to their landlords, guaranteeing themselves secure and high quality accommodation without any hassles. This uniquely tailored financial product enables shifting to a new city with ease.
- Loans for superbikes– These are loans offered by several financial institutions to fuel the dreams of younger customers who wish to own their own superbikes or premium bike models. With brands like Triumph, Royal Enfield, KTM, Kawasaki and others heating up the superbike space, there has been an explosion of biking communities, events and neatly organized biking events. Lenders offer superbike loans that young professionals can avail of and these often come with 40% lower expenditure on EMIs every month in comparison to conventional bike or two-wheeler loans. In some cases, there is 100% funding offered for the on-road prices of these bikes as well.
- Advance Salary Loans– These loans are really handy for millennial professionals and help in taking care of urgent financial needs and other emergencies. The Advance Salary Loans help in getting a line of credit or funding up to roughly 2.5 times of the applicant’s net salary. The tenors for these loans are short and usually range between 3-12 months.
- Loans for weddings– Akin to personal loans, there are dedicated wedding loans offered by several financial institutions. These help applicants realize their dreams of marrying at the best and most exotic locations complete with the finest arrangements. These wedding loans usually come with flexible repayment schedules where only the interest amount has to be repaid for the initial few months and this enables easy financial recovery after the wedding ceremonies and honeymoon.
- Loans for holidays– These are tailored personal loans which usually come with fast sanctioning within 24 hours or slightly more and help young applicants cover all holiday expenses. One can also avail of an interest-only repayment option for the first three months in order to keep things more manageable by all means. These loans help millennials travel to their dream locations across the world without having to wait till an advanced age.
As can be seen, these are highly innovative and handy loan options for new age younger customers in India and financial institutions are now coming up with creatively tailored and financially viable products catering to the needs of younger professionals who constitute a major section of the contemporary workforce and this number will only go up over the next few years as per several studies and reports. With the right financial solutions at hand, younger customers will not have to put off things any longer and can simply obtain funding for their aspirational desires at their own pace.