Data from AI-led recovery firm shows a rise in both digital credit and larger-ticket secured loans during India’s peak spending months
India’s festive season has triggered a sharp increase in borrowing activity, with digital lending volumes rising 16.55 per cent from 2.9 million loans in non-festive months to 3.4 million during the festive period, according to data from DPDzero, an AI-based debt recovery platform.
The data shows a clear divergence in consumer borrowing patterns. Secured loans, such as vehicle and home loans, made up 16.06 per cent of resolved cases in 2025, more than doubling from 6.86 per cent a year earlier. In contrast, unsecured loans remained dominant at 83.94 per cent, led by credit card and short-term digital credit.
Buy-now-pay-later (BNPL) and short-term digital loans remained key drivers of overall festive credit growth, reflecting the continued popularity of instant credit options for lifestyle and discretionary purchases.
Borrowers also appeared to take slightly longer to repay. The average Days Past Due (DPD) rose by three to four days during the festive season compared with normal months, indicating minor repayment delays amid elevated consumer spending.
Among loan segments, two-wheeler loans recorded the steepest growth, rising from 5.2 per cent in 2024 to 15.4 per cent in 2025, followed by credit card loans, which increased from 6.1 per cent to 9.6 per cent.
DPDzero said the data points to a maturing credit ecosystem, where consumers are increasingly taking larger, secured loans while continuing to rely heavily on flexible digital credit options.
