4 Reasons Why Millennials Need Small-Ticket Personal Loans Right Now

4 Reasons Why Millennials Need Small-Ticket Personal Loans Right Now

Personal Loan
Table of Contents

When you think ‘millennial’, what comes to your mind? If you’re thinking of someone scrolling through his/her phone while simultaneously listening to music with earphones plugged in, rushing to get somewhere, you’re spot-on. Millennials refer to the generation born between born between the early 1980s and the late 1990s. They bear the distinction of being the first truly ‘digital generation’ because they have access to smartphones, 3G and 4G internet services, and also high-speed broadband internet. Unlike their parents, they are also intensive users of social media and are always online. They’re either networking on LinkedIn, tweeting or putting up stories on Instagram. Either that or they’re shopping on their favorite online store. Another characteristic that sets millennials apart from their parents is their propensity to spend rather than save. Millennials are all about having experiences and instant gratification. If they want something, they want it then and there. Spending on dining out, recreation, festivals, and travel is nothing new for them. This is why they also find themselves facing a cash shortfall more often than they care to admit.

During such a situation, they require an avenue to require short-term funds that are easy convenient, and more importantly, fast. That’s why a small-ticket size personal loan is the perfect option for millennials today. A personal loan is provided by banks and other financial institutions for working salaried professionals for their personal use. Since they don’t require any collateral or security, personal loans are used for a variety of purposes, like planning a holiday/trip, paying off various bills, to financing events like a birthday celebration. In case you have an immediate, unavoidable expense that you have to take care of, but lack the funds for it, a personal loan is your best bet.

There are several reasons why small-ticket size personal loans work:

Non-traditional Intuitions:

Firstly, such loans are mostly offered by non-traditional institutions like Fintech companies, because banks do not even offer such small-ticket loans. Therefore, that automatically means that the lengthy paperwork, queues, and procedures for which banks are famous, is automatically eliminated.

Alternative Data Points:

Even though they have the capacity to repay, most millennials may not have a credit score. Since that is the basis on which banks lend, they have no choice but to approach alternative lenders like Fintech companies, who offer them small-ticket loans based on many alternative credit data points from social, demographic, and financial data. This includes the customer’s spending habits, their lifestyle and interests, and sometimes even social media profiles.

Flexible Repayment Terms:

Personal loans come with flexible repayment terms where the EMI can be set based on repayment capacity, compared to the rigid tenures set my traditional lenders.


The icing on the cake, however, is that all of this can be done from the convenience of a smartphone. Most Fintech companies have their entire loan application process on their own app, which can be accessed from a smartphone. Therefore, there’s no need to even get out of the house!


These are the main reasons the demand for small-ticket personal loans has risen today. If you’re looking for one, KreditBee is a good option you can consider. The entire loan application process, from profile creation to disbursal does not take more than 10 minutes, and it is completely online on the KreditBee mobile app. You just need to download the app from the Google Play Store, complete your profile, and relax. If you wish to learn more about our loan products, please write to us at [email protected] or simply call +080 44 292 200.


KreditBee As a market leader in the Fintech industry, we strive to bring you the best information to help you manage finances better. These blogs aim to make complicated monetary matters a whole lot simpler.