Festive cheer runs on fast-track loans this year

MUMBAI: Loans are getting festive makeovers! This season, it’s not the lowest interest rate that’s stealing shoppers’ hearts, but how fast the money hits their accounts. A new survey by Paisabazaar reveals that borrowers are now choosing lenders who can deliver funds at lightning speed, with 42 per cent prioritising instant disbursal and hassle-free digital processes over cheaper rates.

The survey, conducted among over 10,200 respondents, paints a picture of convenience-first borrowing. While 25 per cent still chase the best rate, the rest are swiping right on simplicity, opting for platforms that make the process swift, paperless, and seamless.

Digital finance clearly has its fanbase, 80 per cent of respondents said they prefer guided online marketplaces like Paisabazaar to compare and apply for loans. Over half of them (53 per cent) believe faster approvals and disbursals would make borrowing even smoother.

“The growing comfort among consumers to take personal loans, not just for essentials, but for aspirations, lifestyle, and festive spends, shows a more confident and mature credit mindset,” said Paisabazaar CEO Santosh Agarwal.

And what are people borrowing for? Home renovation and furnishing topped the charts at 18 per cent, followed by shopping, gadgets, and gifts at 15 per cent. Gold and jewellery (12 per cent), debt consolidation (10 per cent), and fashion and lifestyle (10 per cent) rounded out the festive wish list.

Interestingly, nearly 60 per cent of borrowers took loans below Rs 5 lakh, and 42 per cent opted for repayment tenures under five years, proof that India’s festive spirit is being powered by smart, manageable credit. Looks like when it comes to personal loans, speed and simplicity are the new sparkle of the season.