Personal loans in India are undergoing a significant shift, moving away from their traditional image as tools meant only for emergencies. Increasingly, borrowers with stable jobs, steady incomes and disciplined investment habits are opting for personal loans to fund a wide range of planned needs from education, healthcare and home upgrades to travel, wellness and lifestyle aspirations. Industry trends indicate that post-Covid, many salaried professionals have reassessed what “investment” truly means. While they have continued systematic investments and long-term savings, there is a growing recognition that health, well-being and quality of life also require timely financial commitment. Rather than redeeming long-term investments and interrupting compounding, borrowers are choosing predictable EMIs to meet immediate needs while keeping their portfolios intact.
Personal loans are now being used for experience-led travel, wellness retreats, self-care procedures, education and upskilling, weddings and home renovations. At the same time, they are serving practical purposes such as debt consolidation, vehicle-related expenses and even credit-profile building through disciplined repayments.
The appeal lies in transparency and convenience—clear loan terms, faster disbursals, simple EMI structures and fully digital journeys have boosted borrower confidence. “We’re seeing customers with strong incomes using personal loans to fund meaningful goals without liquidating long-term portfolios,” said Amit Pathak, Business Head – Personal Loans at Kotak Mahindra Bank. In Kolkata, bankers note a similar trend among urban professionals and business families. Borrowers in the city are increasingly using personal loans for home comfort upgrades, education and wellness-related spending, reflecting a broader shift toward balancing present needs with long-term financial discipline.