Pune: Festive purchases through equated monthly instalments (EMIs) and pay-later schemes have seen a significant uptick this year, with consumers increasingly relying on credit to fund electronics, appliances and holidays amid rising expenses and modest bonuses.“Diwali bonuses these days are not significant. There are many other expenses during the festive season like new electronics purchases, travel etc. We are making a few purchases on EMI and buy-now-pay-later,” said Avinash Thakker, a Hadapsar resident. Aundh resident Pankaj Sharma said rising costs had made instalment-based payments more appealing. “We are more open to using credit card EMIs and paying in instalments,” he said.Banks and non-banking financial companies are offering festive loans and instant-credit options across product categories. ICICI Bank said in a press release that customers could access discounts and cashback through cards, internet banking, cardless EMIs and no-cost EMIs, with offers spanning electronics, travel, fashion and home decor.A consumer durables retailer in Baner said the balance had shifted towards credit. “Till last year, there was a good split between EMI and debit card/cash purchases, but this year there are good offers on EMI or instant credit products so more people are moving towards EMI,” the retailer said.Satyam Kumar, co-founder and CEO of LoanTap, said consumer electronics and holidays were driving borrowing — domestic and East Asian trips were gaining traction, while smaller loans and buy-now-pay-later schemes were increasingly being used to fund purchases. “Most of the borrowers are opting for small loans (6-12 months) or buy-now-pay-later to fund these purchases,” Kumar said.Digital lending platform Kissht reported that loan applications in August were nearly 50% higher than in August 2025. Neha Shivran, its chief data and analytics officer, said average loan sizes had almost doubled — from Rs 21,400 a year earlier to Rs 42,700 in Aug — partly due to increased business lending and customers planning bigger festive purchases.However, financial experts warn that easy credit can strain household budgets when multiple EMIs accumulate or consumers pay only the minimum due on credit cards.“Consumers must look at their overall financial commitments rather than just the monthly instalment,” said a Mumbai-based financial planner, advising borrowers to check total repayment amounts, fees and penalties while keeping enough money aside for essentials, savings and emergencies.
