A significant shift is underway in how Indians borrow money for their celebrations. A new survey reveals that consumers seeking personal loans for festive expenses are now prioritizing instant disbursals and seamless digital processes over traditional factors like the lowest interest rates.
The New Priority: Speed and Digital Convenience
According to a comprehensive survey conducted by Paisabazaar among over 10,200 respondents, the modern borrower's preferences are clear. A substantial 42% of consumers stated that they selected their lender based on the promise of quick disbursal with minimal paperwork. In a telling contrast, only 25% cited the lowest interest rate as their most important deciding factor. This data underscores a fundamental move towards speed and simplicity in borrowing behaviour.
The digital preference is dominant, with a vast majority—80% of respondents—expressing a liking for guided digital platforms like Paisabazaar for comparing and applying for loans. Furthermore, 53% of people identified faster approvals and disbursals as the top factor that would make borrowing even more effortless.
Confidence in Credit and Diverse Spending
Santosh Agarwal, CEO of Paisabazaar, commented on this trend, stating, “The growing confidence among consumers across segments to take personal loans — not just for essential needs, but also for aspirations, lifestyle, and festive spends — reflects a maturing credit ecosystem.” He added that conversations with consumers clearly indicate a preference for seamless digital processes that make credit access convenient and transparent.
The survey also highlighted a growing adoption of festive personal loans. It showed that 41% of respondents took a personal loan for festive expenses for the very first time, indicating fresh growth in this category. An encouraging 46% said they are very likely to take a personal loan again during the next festive season, reflecting rising confidence in this financing option.
Where is the Festive Loan Money Going?
The survey by Paisabazaar provided a clear breakdown of how consumers are utilizing these loans. The top reason for borrowing was home renovation and furnishing, cited by 18% of respondents. This was closely followed by spending on appliances, electronics, and festive shopping or gifting (15%).
Other key categories fueling loan demand included:
- Gold and jewellery (12%)
- Debt consolidation (10%)
- Fashion and lifestyle shopping (10%)
This diverse spending highlights the varied financial needs of consumers during the festive period. The survey also pointed towards prudent borrowing habits, with nearly 60% of borrowers availing loans below ₹5 lakh, and 42% preferring tenures under 5 years.
