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Bajaj Finance, India’s largest non-bank lender, on November 4 said it recorded a strong festive season performance this year with a 27% jump in the number of consumer loans disbursed and a 29% rise in their overall value compared to the same period last year. The surge in consumption loans, the company said, was driven by the government’s latest round of GST reforms and changes in personal income tax that have improved household purchasing power. “The rise in consumption credit, represented by loans for consumer goods, reflects the positive outcome of the government’s next generation GST reforms and changes in personal income tax, aimed at increasing consumers’ purchasing power,” Bajaj Finance said in a statement. Between September 22 and October 26, Bajaj Finance disbursed nearly 63 lakh loans, acquiring around 23 lakh new customers. Notably, 52% of these were first-time borrowers, individuals accessing formal credit for the first time. Sanjiv Bajaj, Chairman of Bajaj Finance, said the government’s reform measures have given a renewed push to India’s consumption-led growth story. “By making everyday products more affordable, these measures have empowered millions of middle and lower-income families to spend with confidence during the festive season,” he said. “The positive impact is not only evidenced in the 27% higher disbursement of consumption loans, but also in a clear premiumisation trend with consumers shifting to higher-quality products for better lifestyles,” he added. Bajaj highlighted that over half of the company’s new festive-season customers were new-to-credit, underscoring the firm’s role in deepening financial inclusion. Bajaj Finance currently operates through 2.39 lakh active distribution points across 4,200 locations nationwide. According to the company, lower GST rates on televisions and air-conditioners led to a 6% reduction in the average loan ticket size while allowing customers to upgrade to better products. Consumer financing for televisions reflected a strong uptrend in premium purchases, with 40-inch and above screens accounting for 71% of total TV loans, up from 67% a year ago. Bajaj Finance, a key arm of Bajaj Finserv, has positioned itself as a diversified, tech-driven lender focused on expanding credit access through innovation. The company finances a wide range of consumer products including smartphones, home appliances, furniture, and rooftop solar panels. It currently serves over 110 million customers through its digital platforms and vast physical network. The company also emphasised its efforts toward transparency and digital convenience, noting that its Bajaj Finserv App, which had 75.1 million installs as of June 30, 2025, enables users to manage credit, deposits, insurance, and investments seamlessly. The government’s ‘Next Generation GST Reforms’, announced by Prime Minister Narendra Modi in September under the banner of GST Bachat Utsav, simplified tax structures and lowered rates across categories. These reforms, along with the 2025 personal income tax cuts, were aimed at boosting household consumption and making business easier for MSMEs and traders. The measures, which have been described as the biggest overhaul of the GST framework since its introduction in 2017, are already reflecting in improved consumer sentiment and stronger festive spending, trends that companies like Bajaj Finance have begun to capture in their latest performance.
