Why festive shoppers are choosing loans over savings. Expert explains the changing borrowing pattern
Consumers are turning to personal loans for festive shopping, travel and other planned expenses, raising questions about how much borrowing is too much.
- Nov 8, 2026,
- Updated Nov 8, 2026 2:12 PM IST
The festive season has always been a time when people spend more. This year, for some consumers, the question is not only what to buy but how to pay for it.
A new phone, a television, furniture for the house or a family holiday can mean a large payment at a time when several other expenses are competing for attention. Instead of using up their savings, some consumers are turning to credit and spreading the cost over several months.
Vinay Singh, Co-Founder and Chief Product Officer at Olyv, said festive borrowing is reflecting changes in what consumers want and how they manage their money.
“Festive borrowing in India is increasingly reflecting the changing aspirations and consumption patterns of consumers,” Singh told Business Today.
Electronics, smartphones, home appliances and furniture continue to account for a significant share of festive purchases. But credit demand is also being seen for travel, home improvement, family celebrations and other planned lifestyle expenses, he said.
The change is subtle but important. Borrowing is no longer being considered only when money is needed urgently. For some consumers, it has become another way of managing a planned purchase.
Don't Miss: Gen Z wants to buy homes, Gen X prioritises retirement: What Indians are saving for in 2026
When a loan becomes part of the shopping plan
Personal loans have traditionally been associated with emergencies or a sudden need for cash. That is not the only role they play now.
“Personal loans are increasingly being considered for a wider range of consumption-led requirements, including festive shopping, travel, electronics and lifestyle purchases,” Singh said.
Digital lending has helped make that shift easier. Applications can be completed through digital platforms, assessments can happen faster and borrowers can access formal credit without some of the friction associated with traditional borrowing.
But convenience is only one part of the decision.
A consumer deciding whether to spend savings on a festive purchase has another option now. The purchase can be financed and the savings can be kept aside for other needs.
“Rather than relying entirely on their existing savings, many are exploring formal credit options to spread expenses over a period of time while maintaining adequate liquidity for other financial commitments,” Singh said.
That can make sense for someone who wants to keep a financial cushion intact. But it also means committing part of future income to something being bought today.
Younger borrowers are more comfortable with digital credit
For younger consumers, borrowing through a digital platform may not feel particularly different from any other online transaction.
They are already accustomed to using their phones to shop, make payments and access financial services. That familiarity is extending to credit as well.
“Younger consumers are generally more accustomed to accessing financial services through digital platforms,” Singh said.
The attraction is often speed and convenience. Consumers can explore credit for planned or immediate expenses without leaving the digital environment they already use for much of their everyday spending.
But Singh cautioned that being comfortable with digital technology does not necessarily mean being financially aware.
“As access to credit becomes more seamless, it is equally important to encourage informed borrowing decisions,” he said.
For younger borrowers, that means understanding the interest rate, repayment schedule and what the loan could mean for their finances over the longer term.
Must Read: Insurance or investment? IRDAI’s proposed mis-selling rules put bank-sold policies under the scanner
The shopping may end, but the repayment continues
The biggest risk with festive borrowing is easy to overlook. The purchase happens once. The repayment does not.
A festive shopping bill can feel manageable when divided into monthly instalments. But that EMI still has to be paid after the celebrations are over, alongside rent, bills, existing loans and everyday expenses.
Singh said borrowing becomes a financial burden when repayments begin to interfere with essential monthly expenses and existing financial commitments.
“Consumers should avoid borrowing beyond their means or taking multiple loans to finance discretionary purchases,” he said.
Before taking another loan, borrowers should look at their monthly income, existing EMIs, essential expenses and emergency savings.
“A useful approach is to assess existing EMIs, monthly income, essential expenses and emergency savings before committing to additional credit,” Singh said.
The distinction is important because not every loan taken during the festive season is necessarily unaffordable. The problem begins when the repayment starts squeezing the rest of the household budget.
“Ultimately, festive spending should not come at the cost of long-term financial stability,” Singh said.
The interest rate is not the whole cost
For consumers considering a personal loan, the first number they often notice is the interest rate. Singh said there are several other details that deserve attention.
Borrowers should look at the total cost of the loan, including processing fees and other applicable charges. They should also consider the tenure and EMI and whether the repayment comfortably fits their monthly income.
“Look beyond the advertised interest rate and account for processing fees and other applicable charges,” Singh said.
The lender also matters. Consumers should verify that the loan is being offered by a regulated bank or NBFC and understand the role of any lending platform or service provider involved.
The loan agreement should be read carefully as well, including details on late payment charges, foreclosure provisions and other fees.
The point is not to make borrowing difficult. It is to make sure that the convenience of getting credit does not overshadow the cost of carrying it.
The danger of making borrowing feel too easy
Digital lending has changed the speed at which consumers can access credit. That convenience can also make it easier to make a decision before considering the full financial commitment.
“One of the biggest mistakes consumers make is focusing only on how quickly they can access credit, rather than understanding the financial commitment they are taking on,” Singh said.
Consumers should look beyond instant disbursal and consider the interest rate, processing fees, repayment tenure and overall cost of the loan.
“It is equally important to borrow from a regulated lender and ensure that the EMI fits comfortably within their monthly budget,” Singh said.
That may be the most important calculation of all during a season built around spending. A discount can end when the festive sale does. A purchase can be forgotten after the celebrations. The EMI remains.
As digital lending becomes a more familiar part of festive spending, the shift is not simply about consumers having easier access to loans. It is about credit becoming part of the way they decide what they can afford.
The real measure of that affordability may come after the festive season, when the shopping is over and the next month's salary arrives.
The festive season has always been a time when people spend more. This year, for some consumers, the question is not only what to buy but how to pay for it.
A new phone, a television, furniture for the house or a family holiday can mean a large payment at a time when several other expenses are competing for attention. Instead of using up their savings, some consumers are turning to credit and spreading the cost over several months.
Vinay Singh, Co-Founder and Chief Product Officer at Olyv, said festive borrowing is reflecting changes in what consumers want and how they manage their money.
“Festive borrowing in India is increasingly reflecting the changing aspirations and consumption patterns of consumers,” Singh told Business Today.
Electronics, smartphones, home appliances and furniture continue to account for a significant share of festive purchases. But credit demand is also being seen for travel, home improvement, family celebrations and other planned lifestyle expenses, he said.
The change is subtle but important. Borrowing is no longer being considered only when money is needed urgently. For some consumers, it has become another way of managing a planned purchase.
Don't Miss: Gen Z wants to buy homes, Gen X prioritises retirement: What Indians are saving for in 2026
When a loan becomes part of the shopping plan
Personal loans have traditionally been associated with emergencies or a sudden need for cash. That is not the only role they play now.
“Personal loans are increasingly being considered for a wider range of consumption-led requirements, including festive shopping, travel, electronics and lifestyle purchases,” Singh said.
Digital lending has helped make that shift easier. Applications can be completed through digital platforms, assessments can happen faster and borrowers can access formal credit without some of the friction associated with traditional borrowing.
But convenience is only one part of the decision.
A consumer deciding whether to spend savings on a festive purchase has another option now. The purchase can be financed and the savings can be kept aside for other needs.
“Rather than relying entirely on their existing savings, many are exploring formal credit options to spread expenses over a period of time while maintaining adequate liquidity for other financial commitments,” Singh said.
That can make sense for someone who wants to keep a financial cushion intact. But it also means committing part of future income to something being bought today.
Younger borrowers are more comfortable with digital credit
For younger consumers, borrowing through a digital platform may not feel particularly different from any other online transaction.
They are already accustomed to using their phones to shop, make payments and access financial services. That familiarity is extending to credit as well.
“Younger consumers are generally more accustomed to accessing financial services through digital platforms,” Singh said.
The attraction is often speed and convenience. Consumers can explore credit for planned or immediate expenses without leaving the digital environment they already use for much of their everyday spending.
But Singh cautioned that being comfortable with digital technology does not necessarily mean being financially aware.
“As access to credit becomes more seamless, it is equally important to encourage informed borrowing decisions,” he said.
For younger borrowers, that means understanding the interest rate, repayment schedule and what the loan could mean for their finances over the longer term.
Must Read: Insurance or investment? IRDAI’s proposed mis-selling rules put bank-sold policies under the scanner
The shopping may end, but the repayment continues
The biggest risk with festive borrowing is easy to overlook. The purchase happens once. The repayment does not.
A festive shopping bill can feel manageable when divided into monthly instalments. But that EMI still has to be paid after the celebrations are over, alongside rent, bills, existing loans and everyday expenses.
Singh said borrowing becomes a financial burden when repayments begin to interfere with essential monthly expenses and existing financial commitments.
“Consumers should avoid borrowing beyond their means or taking multiple loans to finance discretionary purchases,” he said.
Before taking another loan, borrowers should look at their monthly income, existing EMIs, essential expenses and emergency savings.
“A useful approach is to assess existing EMIs, monthly income, essential expenses and emergency savings before committing to additional credit,” Singh said.
The distinction is important because not every loan taken during the festive season is necessarily unaffordable. The problem begins when the repayment starts squeezing the rest of the household budget.
“Ultimately, festive spending should not come at the cost of long-term financial stability,” Singh said.
The interest rate is not the whole cost
For consumers considering a personal loan, the first number they often notice is the interest rate. Singh said there are several other details that deserve attention.
Borrowers should look at the total cost of the loan, including processing fees and other applicable charges. They should also consider the tenure and EMI and whether the repayment comfortably fits their monthly income.
“Look beyond the advertised interest rate and account for processing fees and other applicable charges,” Singh said.
The lender also matters. Consumers should verify that the loan is being offered by a regulated bank or NBFC and understand the role of any lending platform or service provider involved.
The loan agreement should be read carefully as well, including details on late payment charges, foreclosure provisions and other fees.
The point is not to make borrowing difficult. It is to make sure that the convenience of getting credit does not overshadow the cost of carrying it.
The danger of making borrowing feel too easy
Digital lending has changed the speed at which consumers can access credit. That convenience can also make it easier to make a decision before considering the full financial commitment.
“One of the biggest mistakes consumers make is focusing only on how quickly they can access credit, rather than understanding the financial commitment they are taking on,” Singh said.
Consumers should look beyond instant disbursal and consider the interest rate, processing fees, repayment tenure and overall cost of the loan.
“It is equally important to borrow from a regulated lender and ensure that the EMI fits comfortably within their monthly budget,” Singh said.
That may be the most important calculation of all during a season built around spending. A discount can end when the festive sale does. A purchase can be forgotten after the celebrations. The EMI remains.
As digital lending becomes a more familiar part of festive spending, the shift is not simply about consumers having easier access to loans. It is about credit becoming part of the way they decide what they can afford.
The real measure of that affordability may come after the festive season, when the shopping is over and the next month's salary arrives.