India’s credit landscape is steadily maturing, with personal loans, EMI-led products, Loan against property, Two-Wheeler loans etc playing an increasingly important role in supporting both essential needs and personal aspirations. Insights from our How India Borrows 7.0 study show that affordability and flexibility are central to borrowing decisions today—46% of borrowers prioritise manageable EMIs, 38% value quick disbursal, and 37% seek features such as early loan closure. This clearly reflects a growing preference for transparent, customer-centric credit solutions that align with real-life financial planning.

At the same time, consumers are becoming more mindful about borrowing, underscoring the importance of continued efforts around financial awareness and responsible credit usage as unsecured lending scales further. 

As we look ahead to the 2026 Union Budget, we hope to see sustained focus on measures that strengthen responsible lending—through enhanced financial literacy initiatives, stronger transparency frameworks and continued investment in advanced credit infrastructure. Such steps can further empower consumers to access credit with confidence and clarity.

The 2025 Budget’s emphasis on boosting consumption, strengthening digital public infrastructure and advancing financial inclusion has already created a strong foundation for financial institutions focussing on consumer needs. Building on this momentum, the upcoming Budget can help credit evolve into a powerful enabler of financial independence and everyday resilience for Indian households.

Vivek Singh, CEO, Home Credit India