Finance in 2026 : How Personalisation Is Redefining India’s Lending Landscape

As 2025 comes to an end, India’s lending ecosystem has reached a landmark moment. Loan approvals that once took days or even weeks are now completed in minutes. This includes complex products such as Loan Against Property (LAP). Speed, once a competitive edge, has now become a basic expectation.

However, as the industry looks ahead, Finance in 2026 will not be defined by speed alone. Instead, personalisation is emerging as the true differentiator. Lenders that understand customer intent, context, and life goals are set to lead the next phase of growth.

Speed Is Now the Industry Baseline

In 2025, lending processes were redesigned to match real-time consumer behaviour. Credit decisions now move at the same pace as online shopping and instant payments. As a result, borrowing has become tightly woven into everyday spending.

According to the How India Borrows 7.0 study by Home Credit India, 49% of borrowers are using loans to upgrade daily essentials such as smartphones and home appliances. Clearly, credit is no longer reserved for emergencies or big-ticket purchases. Instead, it supports lifestyle choices, making speed a hygiene factor rather than a headline feature.

Automation Alone No Longer Wins Trust

Earlier, lending decisions depended mainly on traditional credit scores and static rulebooks. That approach is quickly losing relevance. In Finance in 2026, automation must be intelligent, not mechanical.

Leading banks and NBFCs are now blending internal data with external sources. These include GST filings, employment trends, geospatial inputs, and alternate digital signals. As a result, lending decisions are shifting from binary approvals to tailored financial solutions. This allows lenders to offer flexibility rather than one-size-fits-all products.

Personalised Lending Enters a New Phase

Personalisation in Indian finance is not new. Over the years, the industry has moved from generic loans to card-linked journeys and co-branded offerings. Now, the next phase is unfolding.

Lending is being embedded directly into daily life through seamless, omnichannel experiences. Multiple data points help lenders understand borrower needs more deeply. Consequently, products are being aligned with individual requirements. Examples include a personal top-up loan bundled with a LAP, accessory loans that go beyond consumer durables, or personal loans paired with credit insurance. This evolution marks a critical shift in Finance in 2026.

Products Are Being Designed Around Life Stages

Rather than classifying customers only by income or credit score, lenders are now designing products around life stages. This shift reflects a more realistic view of Indian borrowers.

For instance, students are being offered moratoriums that match academic timelines. First-time salaried borrowers are receiving dynamic credit limits that grow with income visibility. Similarly, self-employed customers are being assessed on cash flows instead of rigid documentation. These changes have delivered strong outcomes and highlight a more practical lending philosophy.

Omnichannel Lending Is the New Normal

Borrower behaviour has clearly shifted toward digital and omnichannel journeys. The How India Borrows 7.0 report shows that 65% of borrowers prefer EMI cards, while 57% shop online. Meanwhile, online borrowing preference has jumped from 32% to 51% in just one year.

At the same time, dependence on physical branches and point-of-sale locations has dropped sharply, from 49% to 30%. This confirms that omnichannel lending is no longer an innovation. It is now a baseline requirement. To meet this demand, lenders are retraining teams, upgrading systems, and repositioning relationship managers as financial advisors.

Borrower Confidence Remains Resilient

Despite global and domestic economic uncertainty, borrower confidence in India remains steady. Nearly 46% of borrowers still assess EMI affordability before taking a loan. In addition, 28% feel confident about using credit to buy a home.

This behaviour reflects a cautious yet optimistic mindset. Borrowers are willing to use credit, but they expect clarity, transparency, and relevance. These expectations will shape lending strategies in the coming year.

AI Will Be the Biggest Enabler in 2026

Artificial Intelligence is set to play a defining role in Finance in 2026. When deployed at scale, AI can expand financial access in regions where traditional advisory models struggle. It can also help borrowers explore options independently and confidently.

Operationally, AI will support eligibility checks, stress testing, and early warning systems. However, human interaction will remain crucial during moments that demand trust and reassurance. Therefore, the real advantage will lie in balancing AI-led efficiency with human judgment.

The Road Ahead for Finance in 2026

In summary, the future of lending lies in thoughtful design rather than raw speed. Automation will continue to scale operations, yet lending will always remain a deeply personal decision. Institutions that combine empathy, context, and technology will stand out.

Ultimately, Finance in 2026 will favour lenders that listen carefully, personalise intelligently, and deliver efficiency that feels genuinely human.

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