Journal Press India^®

Author Details ( * ) denotes Corresponding author

Objectives: As digitalisation and urbanisation transform consumer behaviour, there has been a notable increase in dependence on loans for electronic goods, highlighting evolving financial habits. Considering this background, this study focuses on the borrowing trends for consumer loans associated with buying smartphones and household appliances in urban Mumbai.

Research Methodology: A survey was conducted with 1,000 respondents using a random sampling method. The survey employed a carefully structured questionnaire containing closed-ended questions for quantitative analysis and open-ended questions to capture qualitative insights distributed via email, social media, and community platforms. A hypothesis was developed to check the significant relationship between financial literacy levels and borrowing with the help of correlation, regression, and ANOVA methods.

Findings: The study reveals that 40% of respondents borrowed for smartphones, while 35% borrowed for home appliances. Middle-income households are the largest borrowers, preferring EMIs. However, only 40% understand loan term borrowings, indicating a financial literacy gap. The research highlights the need for responsible borrowing in urban Mumbai.

Keywords

Borrowing, Financial literacy, EMIs, Sustainable, Loan, Electronic goods

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