Festive Spending in India: India is entering the festive season and people are spending more than before. Credit cards, buy now Pay Later offers, EMIs, and personal loans are shaping the way families shop. Sales give a chance to save money, but experts warn that easy credit can also make people spend too much and carry heavy debt later.
In the last few years the spending during festivals has gone up sharply. Much of this rise comes from credit cards and BNPL offers. RBI data shows credit card spending in September 2024 jumped 25% compared to last year, reaching ₹1.76 lakh crore.
Home loan rates in September: Public and Private banks, HFCs offer 7.35%–10.75%
The number of active credit cards has also grown and crossed 106 million. BNPL has become popular in smaller cities and digital-first buyers. But recent rules and fintechs shifting to EMI models have slowed down its wild growth.
Experts Warn About Overspending
“Festive season sales present a paradox for consumers,” said Anand Agrawal, Co-Founder and CPTO of Credgenics. “Planned purchases can yield genuine savings, but impulsive buyers, swayed by flash sales and easy credit, often spend beyond their means, increasing the risk of debt.”
Credit tools like BNPL, EMIs, and credit cards make shopping look easy because payments are broken into small parts. Rohit Garg, CEO of Olyv, explained, “Instant credit options can mask the reality of repayment, especially when multiple credit lines are being used simultaneously. Even financially savvy consumers can underestimate how quickly discretionary spending adds up” reported CNBC TV18.
Data from RupeeRedee, a digital lending platform, shows a big change in why people borrow. Almost 47.8% of personal loan requests are now for lifestyle needs like shopping, travel, gifting, home makeovers, and even rent. “The borrowing trend highlights growing dependence on personal loans to manage both critical and lifestyle-driven expenses,” said Artem Andreev, Director of RupeeRedee. “Indian families use credit not just for emergencies but also to navigate planned social and cultural events.”
Consumer Confidence Remains Strong
Survey numbers also show that people remain confident about festive shopping. Aditi Singh, Chief Strategy Officer at Satin Creditcare, said, “92% of consumers plan to maintain or increase their festive budgets in 2025, with an average budget of ₹16,500. While promotions create a perception of savings, most consumers stretch their budgets further. Responsible lending, clear disclosures, and financial literacy are crucial to prevent debt accumulation.”
Manish Shara, CoFounder and CEO of ZET, said planned big buys like furniture, appliances, or electronics can really save money during festival discounts. But he warned that unplanned credit shopping is still very common.
“However, unplanned spending fuelled by credit access remains common. Track your credit utilisation, set repayment reminders, and avoid rolling over balances. Used wisely, credit cards and BNPL can make festive shopping affordable, but missing payments can quickly turn discounts into debt,” he advised.
Raj Khosla, Founder and MD of MyMoneyMantra.com, also highlighted the value of self-control. He said that tools like bank offers, EMI discounts, and meta search sites can give real savings, but only when buyers avoid impulse shopping. He also reminded that BNPL and no-cost EMIs often hide costs.
