Health emergencies fueling urban borrowing: Paisabazaar

Medical emergencies are among the biggest reasons for taking a personal loan in urban India, revealed a consumer research report by Paisabazaar.

According to ‘The Personal Loan Story’ report released by Paisabazaar, 11 per cent borrowers in India took a personal loan to meet emergency healthcare and medical expenses, with the share rising to 14 per cent in Tier 1. The same stood at 10 per cent in Tier 2 and 8 per cent in Tier 3 cities. The insight clearly points to low health insurance penetration and rising medical costs leading to dependence on personal loans during medical emergencies.

The report is based on in-depth interviews with 2,889 personal loan borrowers across 23 cities and towns, offering insights into key borrowing triggers, preferences, decision drivers, and awareness levels across regions, city tiers, and age groups in India.

Along with medical needs, borrowers cited essential day-to-day essential expenses, urgent home repairs, and wedding or celebratory events as the most common reasons for availing personal loans.