Personal Loan in Ahmedabad

Ahmedabad is often mistaken as the capital of Gujarat and does not let people regret moving in. It is one of India's largest and fastest-growing cities and has been a trading hub since the old times, with visible growth in the businesses like textile, cotton, and diamond, among others. Ahmedabad, or Amdavad as it is known in the local language, is estimated to soon receive its title of being the Metro city.

Being a trading hub, Ahmedabad has no end to the business and management institutions in the city. One of India's most prestigious business schools, IIM, is in Ahmedabad. After moving there, people find multiple employment opportunities within the city limit. Ahmedabad is also considered one of the safest cities to live and work in, with the lowest crime rate compared to the other tier-two cities. It promotes a healthy lifestyle, with an alcohol ban and mainly a vegetarian diet.

Ahmedabadi people and, by extension, Gujaratis are known for their colorful lifestyle, not in metaphorical terms but in literal terms. From people's homes and in their day-to-day life to the market, places in Ahmedabad are filled with colors. There is no end to the recreational activities that make up for the absence of nightlife that is common in Mumbai or other tier-one cities.

And lastly, the healthcare facilities in Ahmedabad are also one of the bests in the country. It has a plethora of government and private medical institutions that will take care of the people in their medical emergencies.

Consumerism Trend in Ahmedabad

Ahmedabad has recently seen growth in the business and other fronts. With many governmental schemes starting in Ahmedabad, people from across the country are migrating there. The influx of employment opportunities results in people having more income, and more income results in an increased standard of living and an increase in the cost of living. In order to maintain their lifestyle, people often indulge in buying services. This can be analyzed by the consumer trends prevalent in the city.

• Being a trader's paradise, Ahmedabad saw 32% active investment and an increase in the engineering and manufacturing sector. This also increased the flexible working sector by 23.2% active share investment.
• Office and other inventory supply also witnessed an increase with a record of 22.65%, and the lending of the vacant spaces was increased up to 30.34%.
• Ahmedabad's real estate market was earlier very cheap when compared with the other states in Gujarat, but even that changed with an economic boom. This was even more significant, especially after the Covid-19 pandemic subsided. The residential real estate market increased by 0.9% in just a matter of a few months.
• Mid-income families and economically weaker section families saw an investment of 43% and 40%, respectively.
• The retail market witnessed a particular boom compared to all the other sectors, especially high-end fashion brands. Malls and shopping complexes also increased their leasing and their products. As a result, the overall increase in the retail sector was recorded at 65%.

This data is indicative of the increase in the expenditure of the sectors in which it is most prevalent.

Personal Loan Boom in Ahmedabad

Although the cost and the standard of living in Ahmedabad are not that high, it still is higher than the tier three and tier four cities. CRIF data indicates the skyrocketing increase in personal loans from Gujarat from both banks and non-banking financial institutions. It is all steamed from the after-effects of the pandemic. People prefer personal loans to other types of loans as there are almost no restrictions from the lender on how you wish to spend your money. Most Banks and NBFCs also do not ask for the heavy documentation and guarantee to avail the personal loans. Let's look at the contributing factors to the personal loan boom in Ahmedabad.

• With the businesses shut down as a result of the lockdown, the manufacturing units in the state also shut down. This was bad news for the state, whose maximum GDP and the income for most of the population depended on trading and businesses. People not only suffered because their earnings stopped but also because they incurred losses on the investment they made prior to the pandemic. People had no option but to resort to loans or financial helps from banks or authorities to make up for the losses they had incurred.
• The manufacturing industry also suffered a loss. They lost labor as well as suffered due to the shortage of raw materials. Purchasing materials at a higher cost increased the cost of production. They ultimately had to either increase the value of the product, which meant a decrease in the consumer base, or sell products at a low cost and incur losses.
• People, especially from mid and lower-income families, struggled to maintain their routines due to losing jobs and businesses. For them, availing of personal loans seems like a viable option to which they can resort.
• Businesses needed cash flow to maintain their business to keep it floating their business started thriving. For them also, a personal loan is a feasible option as it comes with the lesser restrictions and lesser paperwork than other types of loans.

There are various reasons behind people's choice of personal loans; most often, it is to maintain their small financial crunches or achieve small financial goals such as purchasing household items or investing in a child's education.