As 2025 draws to a close, the lending landscape in India has achieved a new benchmark of speed and standardisation. Credit decisions that once took days or weeks now conclude in minutes, even for large loans such as LAP (Loan Against Property). This pace now mirrors consumer buying behaviour and the economic cycle.

The How India Borrows 7.0 study by Home Credit India highlights this shift, with 49% of borrowers using loans to upgrade daily needs such as smartphones and home appliances. As credit becomes deeply embedded in everyday spending, the conversation heading into 2026 is no longer about speed alone but about how well lenders understand and respond to changing customer expectations. The new frontier is personalisation.

1. Speed Has Become the New Standard

Lending in 2025 has reached a point where speed is expected, not celebrated. Processes that once required a day or a week are now completed within minutes. This has allowed credit to move in step with consumer intent and spending behaviour. As borrowing increasingly supports lifestyle upgrades, lenders that can integrate credit into everyday purchases and deliver near real-time decisions are setting the benchmark.

2. Automation Is No Longer Enough

In the past, lending decisions were driven largely by traditional credit profiles and fixed scorecards. In 2026, automation alone will not suffice. Leading lenders are moving toward a sophisticated mix of internal and external data—integrating GST filings, employment patterns, geospatial information, and social signals. The goal is to move beyond “Yes/No” decisions toward offering relevant, flexible financial solutions.

3. Personalisation Is Entering Its Next Phase

Earlier lending and risk models were static and rule-based. Over time, banks and NBFCs have moved through stages of personalised lending, card-linked journeys, and co-branded products. The next phase will see lending integrate seamlessly with everyday spending, with omnichannel experiences becoming the default. Lenders are now using multiple data sources such as employment data, social platforms, and other alternate signals to build a deeper understanding of borrowers. This approach allows lenders to align products with individual needs, whether it is a personal top-up loan alongside a LAP, an accessory loan covering more than just consumer durable, or a personal loan paired with a credit insurance.

4. Products Are Being Built Around Life Stages

Indian lenders have responded to technological shifts, digital disruption, and economic headwinds by designing products around life stages rather than generic borrower profiles. Examples include flexible moratoriums for students aligned with academic cycles, dynamic credit limits for first-time salaried borrowers that evolve with income visibility, and cash-flow-based assessments for self-employed customers instead of rigid documentation. These changes have delivered encouraging outcomes and reflect a more practical approach to lending.

5. Omnichannel Lending Has Become a Basic Expectation

Borrower behaviour shows a clear move towards omnichannel and online-first lending. The How India Borrows 7.0 report reveals that 65% of borrowers prefer EMI cards, even as 57% shop online. Preference for online borrowing channels has risen from 32% to 51 % in one year, while reliance on physical branches and point-of-sale locations has dropped from 49% to 30%. This confirms that omnichannel lending is no longer an innovation but a baseline requirement. Building this experience requires lenders to retrain credit processes, upskill channel partners, and reorient relationship managers into advisory roles as lending aligns more closely with personal life goals.

6. Borrower Confidence Remains Steady

Despite ongoing macroeconomic uncertainty, borrower confidence remains intact. According to the How India Borrows 7.0 report, 46% of borrowers continue to assess EMI affordability before taking a loan. At the same time, 28% of borrowers feel confident about using credit to purchase a home. This reflects a measured yet optimistic approach towards borrowing.

7. AI Will Shape Lending in 2026

The biggest disruption in 2026 will come from operationalising AI at scale. AI can expand financial access in areas where traditional advisory models are difficult to deploy and enable consumers to explore financial options independently. Operationally, AI can assist in managing eligibility checks, stress prediction, and early warning signals. However, moments that require reassurance and trust will still depend on human interaction.

In short, the real opportunity in 2026 lies in balancing AI-driven efficiency with human understanding. While automation will continue to scale operations, lending will remain a deeply personal decision. Lenders that embed empathy, context, and guidance into their systems will stand out. Finance in 2026 will favour institutions that listen closely, design thoughtfully, and deliver efficiency that feels genuinely human.