Archive · 10 Nov 2025
Indians Prioritize Instant Loans Over Low Rates for Festive Spending: Paisabazaar Survey
Imagine you need money for shopping during festivals like Diwali.
A survey in India found that most people want to get their loans very quickly and with little paperwork, even if it means paying a bit more in interest.
Many people are using apps on their phones to find and apply for these loans because it's easier and faster.
Some people are using these loans for things they planned, like buying new furniture, electronics, or gifts, not just for emergencies.
This is the first time many are taking loans for festive shopping, and they are open to doing it again.
Most people are borrowing amounts they can handle, like less than ₹5 lakh, and planning to pay them back within five years.
This shows that people are becoming more comfortable and trusting of borrowing money for their planned expenses and celebrations.
42% of Indian borrowers prioritize instant loan disbursal and minimal paperwork over lower interest rates for festive spending, according to a Paisabazaar survey.
Nearly 80% of respondents prefer using digital platforms to compare and apply for loans, citing faster approvals as a key factor.
Personal loans are increasingly used for planned purchases like home renovation, electronics, gifting, and jewelry, not just emergencies.
41% of respondents took a personal loan for festive expenses for the first time, and 46% are likely to borrow again next festive season.
Nearly 60% of borrowers took loans under ₹5 lakh, and 42% opted for tenures under five years, indicating measured borrowing patterns.
- Who
- Over 10,200 Indian consumers
- What
- A survey by Paisabazaar found that a majority of festive-season borrowers prioritize speed and simplicity over cheaper interest rates when taking personal loans, with a significant increase in first-time borrowers for festive spending.
- When
- During the festive season
- Where
- India
- Why
- Convenience, speed of disbursal, minimal documentation, and growing confidence in formal borrowing channels are driving this shift, with personal loans increasingly used for planned purchases like home renovation, electronics, gifting, and jewelry.
Consumer Preference
Expert Insight
Loan Decision Factor
Consumer Preference
42% of consumers prioritize lenders offering instant disbursal and minimal paperwork over the lowest interest rates for festive spending.
Expert Insight
The trend points to a behavioral shift toward convenience and digital accessibility in borrowing decisions, with growing confidence in formal borrowing channels.
Borrowing Purpose
Consumer Preference
Personal loans are increasingly being used for planned purchases like home renovation, electronics, gifting, and jewelry, rather than just emergencies.
Expert Insight
The growing confidence among consumers to take personal loans for aspirations, lifestyle, and festive spends reflects a maturing credit ecosystem.
Repeat Borrowing
Consumer Preference
41% of respondents took a personal loan for festive expenses for the first time, and 46% are likely to borrow again in future festive seasons.
Expert Insight
While credit usage is growing, measured borrowing patterns are observed, with around 60% availing loans below ₹5 lakh and 42% opting for tenures under five years.
- Surveyed Consumers
- Over 10,200
- Preference for Instant Disbursal/Minimal Paperwork
- 42%
- Preference for Lowest Interest Rate
- 25%
- Preference for Digital Platforms
- Nearly 80%
- First-time Personal Loan Takers for Festive Needs
- 41%
- Likely to Borrow Again Next Festive Season
- 46%
- Loans Under ₹5 Lakh
- Around 60%
- Loan Tenure Under 5 Years
- 42%
