Are Borrowers Choosing Speed Over Savings This Festive Season? Paisabazaar Report Reveals Surprising Trends

A new Paisabazaar report shows borrowers are picking quick approval over cheap rates. Not a surprise, but still a shift worth noting.

You’re in a store during a festive sale. Washing machine is ₹5,000 off. You check your bank app, apply for a loan, and the money comes in ten minutes. Feels smooth, right? That’s the kind of mindset Paisabazaar’s Festive Loan Report 2025, released in October, is capturing.

Out of 10,200 people surveyed, 42% said they wanted fast approval and less paperwork. Only 25% picked lowest interest as their top need.

It tells us something. Borrowers’ changing festive loan priorities aren’t just about money anymore. It’s about timing, effort, and access.

Why Are Borrowers Choosing Speed Over Paperwork?

Turns out, many of them are borrowing for the first time. The report says 41% of these festive loan applicants in 2025 were new. Most were spending on things like mobiles, electronics, or a quick trip.

There’s also a rise in consumer trends in holiday loan choices. People don’t mind paying a little extra if it means fewer forms, faster disbursal, and no calls from bank staff asking for documents.

The preference for ease is stronger in smaller towns too. Paperless loans and app-based disbursals are picking up fast. These are not city-only choices anymore. This has changed festive season personal loan preferences quite a bit.

People Want Things Instant. UPI Taught Them That.

One big reason behind this change? UPI and digital habits. People are used to doing things quickly now. They don’t want delays, not even for loans.

Here’s what recent data says:
 

When transactions move this fast every day, expectations from credit also change. Shifting borrower behavior for festival financing isn’t just random. It’s built on daily habits.

Also, a Loansjagat article pointed out rising short-term loans in smaller cities. Quick approval, fewer checks. But that also means higher risks if the borrower fails to repay.

Personal Loans Are Back in Demand, But With a Twist

The broader trend is visible in RBI’s official numbers too:
 

The demand is growing. But with more first-timers borrowing, repayment behaviour might get shaky. That’s why some lenders, like Paisabazaar, are trying to balance things.

They’ve also opened walk-in centres in 2025, for people who want support with the digital process. It helps borrowers avoid mistakes, while keeping things quick.

Conclusion 

Something similar had happened in 2023. Quick loans were trending under “Buy Now, Pay Later”. No checks. But defaults went up, and banks had to tighten rules again.

This time, lenders are going a bit slower. Some are adding soft checks, even for instant loans. The government is also pushing digital KYC and API-based verification. All these are trying to avoid the same mistake.