September 11, 2025

Ashish Singhal, co-founder of CoinSwitch, has raised a red flag on a surprising new travel trend among young Indians. According to Singhal, many Gen Z travelers are taking big loans to fund their vacations — a shift that is changing how people budget for trips, especially in smaller cities. In a striking LinkedIn post, Singhal shared some eye-popping numbers: "1 in 4 Indians took a loan to go on vacation last year." He added some vivid examples like "₹2 lakh loan for a Bali trip," "₹1.5 lakh for Thailand," and "₹3 lakh for that 'once in a lifetime' Europe tour." What's even more interesting? "71% of these borrowers are from Tier-2 and Tier-3 cities," he revealed. These are places where folks used to save patiently for months just to visit Mumbai. Singhal pointed fingers at the younger generation for driving this shift. He said, "Gen Z's share of vacation loan takers has nearly doubled in just two years—from 14% to 29%." He explained how many are going for personal loans and EMI plans, which means they're paying way more than the trip's original price. Imagine this: a ₹2 lakh loan with 18% interest can lead to a five-year EMI of ₹5,079. By the time it's all paid off, you shell out over ₹3 lakh — that’s ₹40,000 extra! And all this for a short 7-day trip, mostly shared as "Instagram stories," Singhal pointed out humorously. He compared this trend to the popular Buy Now, Pay Later (BNPL) scheme that helped people buy fancy gadgets they couldn't afford. Now, the same idea has exploded into travel loans. But don’t worry! Singhal also suggested some smart alternatives. He said, "Create a travel fund by setting aside ₹5,000 monthly to cover costs within a year—without interest." He advised booking flights early to catch discounts, often equal to loan EMIs. Plus, he stressed: "Use travel credit cards wisely, ensuring bills are paid in full to avoid interest." Ending on a cheeky note, Singhal said, "Your parents called buying train tickets splurging. You call borrowing ₹2 lakh living your best life." Social media reacted swiftly. One LinkedIn user wrote, "Debt-fueled lifestyles always look glamorous in the moment, but compounding interest is undefeated. What looks like freedom on Instagram often becomes financial handcuffs offline." Another added, "It's basic math: if you need a loan for 7 days in Europe, you can't afford Europe. Credit makes things look cheap, but compound interest always turns them into regret." A third commenter hit the nail on the head with, "It’s not even about the trip anymore. It’s about the post. We’ve turned experiences into debt-driven content." So next time you dream of that dream vacation, remember: sometimes, the biggest price is the loan you pay back long after the trip ends!

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Tags: Gen z travel habits, Vacation loans, Tier-2 and tier-3 cities, Personal loans, Travel debt, Coinswitch,