Speed of Disbursal, Digital Ease Drive Festive Loan Choices: Paisabazaar Survey

42% chose lenders providing quick disbursals and easy processes, over low interest rates; home renovation, shopping, and gifting top loan purposes

Gurgaon, November 10, 2025: Consumers taking personal loans for festive expenses are increasingly prioritising instant disbursals and convenient end-to-end digital processes over traditional factors like interest rates, revealed a new survey by Paisabazaar, India’s leading marketplace for consumer credit and other financial products.

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 lowest interest rates was the most important factor while 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 makes 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. 46% said they are very likely to take a personal loan again in festive seasons, reflecting 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.