A Study on Student Borrowing Behaviour Through Credit Apps in Chennai

Dheerthahiri S; Lavanya Veeran

Abstract

This research aims at studying the borrowing proportion of students through credit apps in Chennai with a focus on Slice and mPokket. While these apps do provide rapid financial support, doubts are raised regarding their implications towards an individual's financial stability and mental well-being. Factors influencing the dependency of the student have been highlighted in this research while the effect of borrowing on stress, anxiety, and decision-making about finances has also been touched on. It analyses whether these students go towards being financially responsible or fall in the vicious cycle of debt. This also studies the effect of credit apps on the credit rating and financial opportunities that exist thereafter. Also, using responses from surveys, it gathers insight into how the students view the borrowing among themselves. The results from the study are targeted towards developing programs on financial literacy to promote responsible credit usage. It will finally raise awareness of the financial risks and the adherence to sustainable borrowing practices. In addition, the study explores whether students develop responsible financial habits following their borrowing experiences or if they become ensnared in a recurring cycle of debt. It also evaluates how the use of credit apps impacts their credit ratings and the financial prospects available to them in the future. Through the analysis of responses gathered from well-structured surveys, the research captures insights into students' perceptions and their attitudes toward borrowing among peers. The broader aim of this research is to support the creation of financial literacy programs that encourage mindful credit usage and promote long-term, sustainable borrowing practices, while also highlighting potential financial risks involved.