Consumers taking personal loans for festive expenses are increasingly prioritising instant disbursals and convenient end-to-end digital processes over traditional factors such as interest rates, revealed a new survey by Paisabazaar.
According to the survey, conducted among over 10,200 respondents, 42% of consumers said they chose their lender for quick disbursal with minimal documentation, while 25% said the lowest interest rate was the most important factor in choosing an offer – underscoring a shift toward speed and simplicity in borrowing behaviour.
A large majority — 80% of respondents — said they prefer guided digital platforms like Paisabazaar for loan comparison and application, with 53% citing faster approvals and disbursals as the top factor that would make borrowing even easier.
Santosh Agarwal, CEO, Paisabazaar, said, “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. Conversations with consumers, as reflected in the survey, clearly indicate a preference for seamless and digital processes that make access to credit convenient, transparent and easy.”
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. Up to 46% said they are very likely to take a personal loan again during the festive season, reflecting a rising confidence in personal loans as a convenient and reliable financing option.
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.
Nearly 60% of borrowers availed festive personal loans below ₹5 lakh, while 42% preferred tenures under 5 years, signalling prudent and manageable borrowing behaviour among consumers.
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