Southern India embraces speed and digital ease over interest rates while availing Festive Loans: Paisabazaar Survey

Gurgaon: Credit consumers across Andhra Pradesh, Tamil Nadu, Karnataka and Kerala, are increasingly opting for faster disbursals and a digital-first experience over interest rates while availing festive loans, according to a recent survey by Paisabazaar.

The survey conducted during this festive season, comprising 1700 responses from 18 South Indian cities, found that 41% of respondents preferred pre-approved and instant loan offers, while 24% prioritised fully digital loan processes. Around 20% of borrowers said they chose lenders based primarily on lower interest rates. Additionally, 80% of respondents preferred digital platforms that offer step-by-step guidance throughout the loan journey.

The survey also highlighted that 39% of respondents borrowed for home renovation and furnishing, followed by 27% who borrowed for debt consolidation. Other key usages included festive shopping and gifting (14%), purchase of appliances and electronics (12%), and purchase of gold and jewellery (10%).

In terms of ticket size, 35% of borrowers opted for personal loans in the range of ₹3 lakh to ₹5 lakh, while 22% borrowed amounts between ₹1 lakh and ₹3 lakh. Notably, 14% of respondents borrowed amounts exceeding ₹10 lakh.On the tenure front, 49% of borrowers preferred repayment periods of 1 to 3 years, while 33% opted for tenures between 3 and 5 years.

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.”

Among respondents 39% said this was their first time availing a festive personal loan, while 29% had taken festive loans earlier but not every year. Looking at future demand, 41% of respondents said they are very likely to take a personal loan in the next festive season, while 14% said they are somewhat likely to do so.

Regarding urgency, 41% of borrowers said they required funds within three to five days, while 27% needed funds within two days. Meanwhile, 31% of respondents said they were comfortable waiting for a week or more to receive funds.