IndiaLends, an online marketplace for personal loans and credit cards, has launched its second edition of IndiaLends’ #TravelToGrow report on World Tourism Day, celebrated on September 27. The study investigates how the youth in India are investing in travel experiences using credit products.

On the other hand, loan applications for travel purposes have increased two-fold. Interestingly, last year, the company witnessed a 10x growth in loan applications for travel purposes and a 6x growth in travel credit cards. The shift in trend indicates people really like to travel. Individuals are using credit to invest in acquiring travel experiences as well as leveraging the rewards and benefits offered by credit cards to fully or partially fund their wanderlust.

Over the last year, IndiaLends has noticed a significant increase in credit card applications during March, preceding the holiday season, and from September to December, coinciding with the festive, year-end, and wedding seasons.

Gaurav Chopra, Founder & CEO of IndiaLends, said, “Travel is an integral part of life for many, one of the top aspirations fueled by our Indian cinema and social media. Given the remarkable growth we are witnessing in our travel-centric credit cards, today’s younger generation is actively focused on establishing a strong credit history while making savvy use of the reward programs linked to credit cards. With the upcoming festive and holiday season, just like last year, we expect a significant surge in applications for travel-specific credit cards by the end of CY 2023.”

“With the growing popularity of travel-focused credit cards, it is crucial to manage credit cards responsibly, ensuring on-time payments and avoiding high balances to avoid potential debt and financial challenges”, Chopra added.

Ankit Khurana, Chief Marketing Officer, IndiaLends, said, “Looking at the consumer trend, it is apparent that today’s youth are not looking at travel just as leisure but as a profound way to create cherished memories and personal growth. This trend is amplified by changing lifestyles that prioritise experiences over material possessions, growing awareness among consumers, and the availability of personalised card options tailored to the preferences of different travellers.”

Furthermore, the numbers also show how these travel-specific cards have been incorporated into everyday life to maximise the benefits. A substantial 38 percent of users used their travel-specific cards for everyday expenses for a year and accumulated reward points. Out of those, about 22 percent used these reward points and got 1 complimentary domestic flight ticket, the survey said.