Gurgaon, 12th November, 2025: Consumers seeking personal loans for festive spending are increasingly prioritizing instant disbursals and fully digital processes over traditional factors like interest rates, according to a new survey by Paisabazaar, India’s leading marketplace for consumer credit and financial products.
The survey, conducted among over 10,200 respondents, revealed that 42% of consumers chose their lender for quick disbursal with minimal documentation, while only 25% cited the lowest interest rate as the top deciding factor—underscoring a growing preference for speed, convenience, and simplicity in borrowing.
A significant 80% of respondents said they prefer guided digital platforms like Paisabazaar for comparing and applying for loans, with 53% noting that faster approvals and disbursals would further enhance the borrowing experience.
“The growing confidence among consumers to take personal loans not only for essential needs but also for aspirations, lifestyle, and festive spending reflects a maturing credit ecosystem,” said Santosh Agarwal, CEO, Paisabazaar. “As consumers increasingly seek seamless digital experiences, convenience, transparency, and speed are becoming the new benchmarks for lending.”
Growing Adoption of Festive Personal Loans
The survey highlighted that 41% of respondents availed a personal loan for festive expenses for the first time, indicating strong new adoption in this segment. Additionally, 46% expressed they are very likely to take personal loans again in upcoming festive seasons, pointing to growing trust in personal loans as a convenient and reliable financing option.
Home renovation and furnishing (18%) emerged as the top reason for festive borrowing, followed by appliances, electronics, and gifting (15%). Other key categories included gold and jewellery (12%), debt consolidation (10%), and fashion and lifestyle shopping (10%)—illustrating the wide range of financial needs during the festive period.
Nearly 60% of borrowers availed loans below ₹5 lakh, while 42% opted for tenures under 5 years, reflecting prudent and manageable borrowing behaviour among consumers.
The findings highlight a clear trend: Indian consumers are embracing digital-first, fast, and flexible lending experiences, redefining how personal credit is accessed and utilized during the festive season.