Demand for instant loan!
The pace of shopping in India remained fast during the festive season, but this time the priorities of the customers have changed a bit. Now people are giving more importance to convenience and speed than bargaining or interest rates. Paisabazaar's recent survey revealed that 42% consumers chose lenders offering instant loans and less paperwork over low interest rates. Whereas only 25% people said that interest rate was the most important factor for them. It is clear from this that for shopping during festivals, people are now avoiding the long process of banks and looking for such options which can provide money immediately.
Now personal loans are being taken not only for emergency needs but also for aspirational expenses. Like home decor, electronics, fashion or festive shopping. According to the survey, 42% people preferred loans with faster approval and less documentation. Nearly 80% of consumers said they prefer to compare and apply for loans through digital platforms. 53% of the respondents said that they expect even faster approval and disbursal in the future.
According to the survey, 41% people took festive personal loan for the first time. This shows that now common people have also started adopting this option. Whereas 46% respondents said that they are likely to take a loan again during festivals next year. This change indicates that people have now started viewing loans as a smart financial tool rather than a difficult decision.
During festivals, maximum loans were taken for home repair and decoration. According to the survey, 18% people took loans for home renovation and furnishing, 15% spent on electronics, appliances and gifting and 12% took loans for gold, silver or jewellery. While 10% used the loan to repay debt (debt consolidation) and 10% used the loan for fashion and lifestyle shopping. These figures show that now festivals have become the season not only for shopping but also for financial planning.
Another important thing came out from the survey. People are spending responsibly even after taking loans. About 60% people took loans of less than ₹5 lakh, while 42% chose loans with a tenure of less than 5 years. This means that customers are now taking loans as per their capacity so that the debt burden does not increase.
