Festive borrowers choose speed over rates: 42% opt for instant loans

For India’s festive shoppers this season, convenience clearly trumped bargain-hunting. A new Paisabazaar survey of over 10,200 consumers shows a strong shift in how Indians are borrowing to fund Diwali-season expenses: 42% chose lenders offering instant loan disbursal and minimal paperwork, even over the lowest interest rates. Just 25% said the interest rate was their top priority.

 

Fast, frictionless credit wins festive season

 

• Personal loans are increasingly being used for aspirational purchases instead of only emergencies. According to the survey:
• 42% picked lenders for fast disbursal and low documentation
• 80% prefer digital platforms to compare and apply for loans
• 53% want even faster approval & disbursal

 

Santosh Agarwal, CEO, Paisabazaar, said this reflects a maturing credit market:

 

“Consumers today value convenience, transparency and digital ease in credit access. Personal loans are now an aspirational and lifestyle-driven category, especially during festive seasons.”

 

First-time festive borrowers rise

 

Festive borrowing is booming — and not just among seasoned credit users:

 

41% took a festive personal loan for the first time

 

46% are “very likely” to borrow again next festive season

 

This signals increasing comfort with personal loans as a planned financial tool rather than a distress option.

 

At least 53% cited faster approvals and disbursals as the top factor that would make borrowing even easier.

 

Growing Adoption of Festive Personal Loans

The survey showed that 41% of respondents took a personal loan for festive expenses for the first time, indicating new adoption in this category. 46% said they are very likely to take a personal loan again in festive seasons. 

Home improvement led the list, showing the post-pandemic home-upgrade trend still holds strong.

 

 

Home renovation and furnishing (18%) was the top reason for taking a personal loan during the festive season, according to the survey by Paisabazaar, followed by appliances, electronics, and festive shopping or gifting (15%).  Other key categories included gold and jewellery (12%), debt consolidation (10%), and fashion and lifestyle shopping (10%) — highlighting the diverse financial needs of consumers during this period.

 

• Borrow responsibly: Most borrowers doing it right
• The data suggests shoppers aren’t going overboard:
• Nearly 60% borrowed under ₹5 lakh
• 42% opted for loan tenure under 5 years

 

Smart borrowing tips for festive loans:

 

•  Compare rates & processing fees — not just instant approval
•  Borrow only what you can repay comfortably
• Shorter tenure = lower total interest
• Check your credit score before applying to get best rates
• Use regulated, trusted lenders and platforms

 

India’s festive credit boom is here to stay.

 

From iPhones to home makeovers to jewellery, Indians are financing festivals like never before. The key now is ensuring that the celebration doesn’t turn into debt stress later.