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Individual Loans for Lifestyle News: Loan only There is a big shift in thinking about emergency evacuation; Consumers are taking personal loans for various reasons ranging from property, education, travel, healthcare to even lifestyle needs. The notion that taking personal loans is only in ’emergency situations’ is gradually changing in India. This shift is particularly visible among consumers with stable jobs and well-paid jobs. This change has been seen among the class who have been following financial discipline for many years, building long-term savings and investing consistently.

Especially after the covid pandemic investment Although the ability to do so has not been affected, the definition of ‘investing money’ has actually changed. While proper care is taken for the financial future, many have noticed that the necessary investments for health, mind and body are unknowingly neglected. Since then, this perception has become stronger, as in the midst of hectic work lives and fast-paced routines, people no longer see things like maintaining health, self-care or improving quality of life as indulgences, but as necessities.

As a result, today’s borrowers are spending with more clarity and purpose. Long neglected goals such as health, education, meaningful experiences, home comforts and personal aspirations are now being prioritized by them. But they don’t want to use their hard-earned investments to fulfill these goals. They are able to pay installments and spend for other purposes without affecting their SIPs, long-term portfolios and retirement provisions.

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In this situation, a personal loan becomes a viable option. Knowing the installment (EMI) figure can be deducted and daily expenses can be planned and continued without touching the long term investments. In short, the traditional idea of ​​’dream-fulfillment’ borrowing has been reinvented: many borrowers today are already invested – they easily opt for a personal loan to meet their goals without stopping their wealth accumulation journey.

A more viable borrower mindset is at the core of this new trend. Most people are reluctant to withdraw money from long-term investments to meet temporary needs, as it can lead to a break in wealth, reduced future benefits, and sometimes even incurring capital-gains taxes. Instead, after deducting fixed installments, enough money remains in hand to meet essential needs and SIPs, equity investments and retirement provisions are not affected.

All cities are showing a mindset to focus on real-life needs—some focus on health, while others emphasize milestones in life. There is also a rise in property acquisitions to fulfill long-standing desires. Consumers are using personal loans to meet the needs of the moment and move ahead in life without making any changes in long-term financial planning.

What are consumers using personal loans for today?

Borrowing patterns reflect a wide variety of intended uses. They are as follows:

There is a growing trend among consumers to use personal loans for a wider range of ‘life investments’, combining aspiration and health: personal loans are being taken out for adventure-oriented experiential travel beyond mere sightseeing; Personal loans are being taken to experience ‘wellness retreats’ developed in such a way as to be close to nature, quiet, meditative and away from digital devices; Personal loans are being taken out for self-care practices that boost confidence but have been put off for years, such as skin treatments, hair transplants and elective cosmetic procedures. Apart from this, there is a clear increase in the purposeful expenditure on education and skill development as well as increasing the comfort of the home and home repairs. Personal loans are on the rise to spend on important moments in life where time is of the essence, be it weddings, family functions or important celebrations.

Personal loans are also being used for viable, day-to-day financial planning. Many consumers are also using these loans to bring all their dues into one place (debt consolidation), so that all fixed expenses are covered in one installment, giving them greater control over their finances and peace of mind. Some people use personal loans to cover the money gap to the vehicle as well as for urgent repairs that cannot be postponed. There is also an increase in the number of people taking out personal loans to improve their credit profile. By taking personal loans and repaying them through disciplined, punctual installments, the borrower’s credit profile becomes better and stronger. A good credit profile increases eligibility for future loans and borrowers can avail loans at favorable terms in the future.

Borrowers have also realized the cost of delaying important decisions. Whether that decision is to do home renovations that improve the quality of daily living or to take care of yourself in a stressful routine. According to many, taking a personal loan means balancing today’s needs with tomorrow’s goals responsibly.

Reasons behind increasing confidence

A personal loan is easier to understand and plan for:
• Loan terms and charges are more clear and transparent.
• Faster the disbursement, the easier it is to access the loan.
• Since the installment structure is simple, financial planning becomes easier accordingly.
• Digital journey allows customers to complete the process at their own convenience.

“We are seeing a confident transition: customers with good income and disciplined investment habits are using personal loans to pursue meaningful goals like health, life experiences and long-unfulfilled aspirations, without compromising long-term investments. Post-Covid pandemic, many are prioritizing self-care and fulfilling long-cherished dreams, which are no longer seen as luxuries. For such customers, Kotak Personal Loans are an easy choice. Discipline stands. “They are taking loans to avoid stalling or breaking long-term investments. Personal loans are helping them live in the present and at the same time secure the future,” said Amit Pathak, Business Head, Personal Loans, Kotak Mahindra Bank.

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