The latest Samsung Galaxy S series smartphone is out and it has got heads turning. Great looks and good features aside, the phone is priced at Rs.58,000.
Raman, a tech savvy prospective Samsung Galaxy S8 customer finds the price way beyond reach. But that does not deter him. He approaches his bank for a personal loan so he can gift himself a phone for his birthday.
Armed with all the documents, he applies for a loan. With 3 days to D-day, Raman cannot wait any more for news of his loan approval. On calling the bank he is told that his application is still under process. Shocked and disappointed on the bank’s lack of momentum slow movement, he decides to look at other options.
An online search takes him to an alternate lending platform website. He fills in all his personal details and submits his last 6 months bank statement. Within a day his loan is approved, and within 2 days Raman has the personal gadget loan amount credited to his designated bank account.
He gifts himself the Samsung Galaxy S8 and is busy telling everyone at his birthday party to go get a loan online for that next gadget they’re craving.
Gadget funding just like Home Improvement, Medical emergency, wedding and travel are emerging borrower trends among millennials in India. Borrowers who apply for gadget loans do not want the complexities involved with traditional banking services such as time delay, fixed repayment schedule, hidden charges etc.
Note: 2 weeks after that Raman receives a call from the bank saying his loan is rejected since he does not have a credit score as he had never availed of a loan before.