A customer survey conducted by the international alternative lending holding Robocash Group in India has shown that 69.4% of its Indian customers are currently saving money for different purposes. Long-term plans stay in priority for 56.1% of respondents. Particularly, 42.7% save funds for a house, 7% save money to buy a vehicle and 6.4% do it to pay for education. These are the most common answers.
At the same time, most respondents claimed that online loans help to pay for daily needs (40.8%) including food, transport fare and other necessary expenses. Regular monthly bills for housing and utility services, rent, mobile and internet services, TV etc. follow with 18.5%.
Analysts of the company find that although these tendencies might seem mutually exclusive, they complement one another. Small online loans serve as an efficient tool designed to cover a short-term gap in a family budget. Most often, it helps to decrease troubles caused by the difference in salary dates and expenses schedule. At the same time, this tool doesn’t hurdle strategic financial planning. Saving money using a bank deposit or other tools means long-term money work. Taking those funds out of savings may cause much higher expenses than the cost of a small amount of debt.
The findings on the structure of monthly expenses among Indians prove it by the close correlation of the most frequent expenditures with the common purpose of short-term online loans. For 33.5% of respondents, housing, utility services and rent make the most of monthly expenses. Food takes second place with 14.6%. These payments cause short-term gaps in a personal budget most often. Another remarkable point listed as regular expenditures among Indians is the financial support to relatives (9.5%). It distinguishes India from other Asian countries and emphasizes the strength of family ties.
Then, it is noteworthy that 30.6% of the respondents do not save at all: 22.3% of them mention having insufficient income as the main obstacle for it.