India's Growing Appetite for Credit-Fuelled Leisure

Mumbai: A recent survey reveals a significant shift in personal borrowing trends in India, with holidays now topping the list of reasons for taking out loans. According to Paisabazaar's report, 27% of borrowers in the first half of 2025 took loans to fund vacations, surpassing home renovations and medical needs.

The Rise of Travel and Lifestyle Loans

The surge in travel loans is part of a broader increase in travel among Indians. Government data shows over 3 crore Indians traveled abroad in FY24, with spending on foreign travel accounting for 57-60% of all outward remittances in FY25.

Generational Shifts in Borrowing

Millennials dominate the holiday-loan market, but Generation Z is catching up fast, with their share more than doubling since 2023. This shift reflects a new-age consumer base that's digitally savvy and willing to finance leisure.

Changing Geographic Trends

Demand for holiday loans is growing fastest in Tier-2 and Tier-3 cities, which accounted for 71% of applications in early 2025. Meanwhile, destinations like South-East Asia and domestic spots like Goa are leading borrowers' travel choices.