The way Indians borrow money is changing faster than ever. With rising interest rates, digital lending apps, and the comeback of secured loans, 2025 looks set to reshape personal and business borrowing in India.
For borrowers, staying informed isn’t just about finding money — it’s about borrowing smartly. Let’s explore the 5 key loan trends every Indian should know this year.
1. Gold Loans Are Back in Fashion
Rising interest rates on unsecured loans have made gold loans a preferred choice. With lower interest rates and flexible repayment options, Indians are unlocking the value of their jewelry once again.
Why it matters: Affordable and accessible for middle-class families.
Trend Insight: Gold loans are expected to grow at double-digit rates in 2025.
2. Digital Lending Goes Mainstream
Fintech apps and digital-first banks are offering instant loans with just a few clicks. Borrowers love the speed, while lenders benefit from AI-powered risk assessments.
Why it matters: Convenience + speed of approval.
Trend Insight: Over 70% of personal loan applications in urban areas are now digital.
3. Rise of Secured Lending Over Personal Loans
Personal loans, once the go-to option, are losing appeal due to higher EMIs. Indians are shifting towards secured borrowing — gold, property, and FD-backed loans.
Why it matters: Borrowers get lower rates and higher loan amounts.
Trend Insight: Collateral-backed loans are set to dominate both urban and semi-urban markets.
4. Green & Sustainable Financing
India’s renewable push is driving demand for green loans — funding solar rooftops, EVs, and eco-friendly projects. Borrowers benefit from lower rates and government incentives.
Why it matters: Aligns with India’s 2070 net-zero goals.
Trend Insight: Green financing is projected to grow rapidly, especially in metros.
5. Credit Scores Are More Important Than Ever
In 2025, CIBIL scores and digital footprints play a bigger role than collateral. Lenders use AI tools to assess not just credit history but also digital payment patterns.
Why it matters: A higher credit score = better loan terms.
Trend Insight: Borrowers with 750+ scores enjoy the lowest rates.
How Borrowers Can Stay Ahead in 2025
Compare loan options before applying.
Prefer secured loans for big-ticket needs.
Maintain a strong credit score by paying EMIs on time.
Explore green loans for sustainable investments.
Use digital platforms but choose trusted lenders.
Conclusion: Borrowing Smart = Financial Confidence
2025 isn’t just about borrowing money — it’s about borrowing smartly. By understanding these trends, Indians can choose the right loan products, save on interest, and build long-term financial security.
Whether it’s a gold-backed loan for urgent needs or a green loan for the future, the smart borrower of 2025 is informed, cautious, and forward-looking.
FAQ
Q1. What types of loans are most popular in India in 2025?
Gold loans, digital loans, and collateral-backed loans are gaining traction in 2025.
Q2. Are personal loans still a good option in 2025?
Yes, but high interest rates make secured loans more attractive for many borrowers.
Q3. What are green loans in India?
Loans designed to fund eco-friendly projects like EVs, solar rooftops, and renewable energy.
Q4. How important is a credit score in 2025?
Extremely important. A good CIBIL score ensures lower interest rates and higher approval chances.
Q5. How can Indians borrow smartly in 2025?
By comparing lenders, maintaining credit scores, and choosing secured loans for big needs.
Published on : 30th August
Published by : SMITA
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