New Delhi, February 2026.

Personal loans in India are steadily moving away from the old “distress‑only” perception. This shift is especially visible among customers with stable jobs and steady salaries — people who have been financially disciplined for years, building long‑term savings and investments with consistency.

What changed, especially after Covid, was not their ability to invest — but their definition of what “investing” truly means. Many realised that while they were doing the right things for their financial future, they had unintentionally set aside investing in their health, mind and body. That realisation has only grown stronger in the years since, as demanding work lives and fast‑paced routines have made wellness, self‑care and quality‑of‑life upgrades feel less like indulgences and more like necessities.

As a result, today’s borrowers are spending with more clarity and purpose — prioritising long‑neglected goals such as wellness, education, meaningful experiences, home comfort and personal aspirations. Importantly, they don’t want to fund these goals by breaking the very investments they have worked hard to build. They have the capacity to pay EMIs, and they want their SIPs, long‑term portfolios and retirement plans to keep compounding uninterrupted.

This is where personal loans are becoming a practical choice. A predictable EMI helps manage today’s expenses while allowing long‑term investment discipline to continue. In effect, the traditional notion of taking a loan “to fulfil dreams” is being rewritten: many of today’s borrowers are already investors — they simply choose credit to pursue their goals without pausing their wealth‑building journey.

At the heart of this trend is a more grounded borrower mindset. Many customers prefer not to redeem long-term investments for short-term requirements — because doing so can interrupt compounding, dilute future gains, and in some cases trigger capital-gains implications. Instead, a predictable EMI allows them to meet immediate needs while keeping SIPs, equity holdings and retirement plan on track.

Across cities, this mindset is showing up in a range of real-life needs — some focused-on well-being, some on life milestones, and increasingly, some on building assets they long desired. Customers are using personal loans to move quickly when the moment matters, while still keeping their long-term financial plan intact.

How customers are using personal loans today

Borrowing patterns indicate a wide set of planned use cases, including:

Customers are increasingly using personal loans to fund a broader set of “life investments” that blend aspiration with well-being: experience-led travel that goes beyond sightseeing into curated, activity-driven itineraries; wellness retreats designed around nature, silence, meditation and digital detox; and confidence-led self-care such as dermatology, hair restoration and other elective aesthetic procedures that many had postponed for years. Alongside these, there is a visible rise in purpose-led spending on education and upskilling, home comfort upgrades and renovations, and milestone moments where timing matters—weddings, family commitments, and important celebrations.

Personal loans are also being used for practical, day‑to‑day financial management. Many customers choose them for debt consolidation, bringing multiple payments under one predictable EMI for better control and peace of mind. Others use them to address vehicle‑related funding gaps and essential upgrades that cannot be delayed. A growing segment also uses personal loans deliberately to build and strengthen their credit profile through disciplined, timely repayments—treating good financial hygiene as an investment in future eligibility and better terms.

Equally, borrowers are recognising the cost of postponing important decisions — whether it’s delaying a home upgrade that improves daily living or putting self-care on hold in an increasingly high-stress routine. For many, taking a personal loan is about balancing today’s needs with tomorrow’s goals — responsibly.

Why confidence is rising

A personal loan is easier to understand and plan for:

• Loan terms and costs are clearer and more transparent

• Disbursals are faster and easier to access

• EMI structures are simple to budget around

• Digital journeys allow customers to complete the process on their own terms

“We’re seeing a confident shift: customers with strong incomes and disciplined investment habits are using personal loans to fund meaningful goals—wellness, life experiences, and long‑pending aspirations—without liquidating long‑term portfolios. Post‑Covid, many customers have started treating self‑care and long‑held dreams as priorities, not indulgences. Kotak Personal Loans are becoming a natural choice for them. They’re not borrowing to avoid pausing or breaking the long‑term investments they’ve built with discipline. A personal loan helps them live life more fully today while keeping their future plan intact,” said Amit Pathak, Business Head – Personal Loans, Kotak Mahindra Bank.