Copyright dailyexcelsior
NEW DELHI, Nov 10: For India’s festive shoppers this year, convenience trumped bargain-hunting. A new Paisabazaar survey of over 10,200 consumers reveals a major shift in borrowing behaviour with 42pc respondents choosing lenders offering instant loan disbursal and minimal paperwork over those with the lowest interest rates. In contrast, only 25pc said the interest rate was their top priority. The findings highlight how personal loans are increasingly being used for aspirational and planned purchases, rather than just for emergencies. Convenience and digital access appear to be driving this change. According to the survey, 42pc of respondents picked lenders based on the speed of disbursal and simplicity of the documentation process. A massive 80pc preferred digital platforms to compare and apply for loans, and 53pc said that even faster approval and disbursal would make the borrowing experience more convenient. Festive borrowing is also expanding beyond seasoned credit users. The survey found that 41pc of respondents took a personal loan for festive expenses for the first time, indicating new adoption in this category. Moreover, 46pc said they are “very likely” to borrow again next festive season, showing a growing comfort with using personal loans as a planned financial tool rather than a distress option. When it comes to how the borrowed funds were used, home renovation and furnishing emerged as the top reason, cited by 18pc of respondents. This was followed by appliances, electronics, and festive gifting at 15pc. Other popular categories included gold and jewellery (12pc), debt consolidation (10pc) and fashion and lifestyle shopping (10pc), reflecting the diverse financial needs of Indian consumers during the festive season. Despite the increase in borrowing, the survey suggests that shoppers are exercising caution and responsibility. Nearly 60pc of borrowers took loans of less than Rs 5 lakh, and 42pc opted for a loan tenure of under five years. This indicates that while credit usage is growing, most consumers are keeping their borrowing within manageable limits. Financial experts recommend a few key steps for smart festive borrowing: compare interest rates and processing fees rather than focusing solely on instant approvals, borrow only what can be comfortably repaid, and choose shorter tenures to reduce total interest costs. Checking one’s credit score before applying can also help secure better loan offers, while it is always safer to borrow from regulated and trusted lenders or platforms. From iPhones to home makeovers and jewellery, Indians are increasingly financing their festive celebrations through quick, digital loans. As convenience and technology reshape how people borrow, India’s festive credit boom looks set to continue. The challenge now is to ensure that the joy of celebration doesn’t turn into long-term debt stress.
