Union Budget 2026 Credit Outlook : Focus on Responsible and Customer-Centric Lending

India’s credit ecosystem is evolving at a steady pace. Today, loans no longer serve only emergencies. Instead, they support daily needs and personal goals.

According to Vivek Singh, CEO of Home Credit India, products such as personal loans, EMI-led financing, loan against property, and two-wheeler loans now play a key role in household planning.

Affordability and Flexibility Drive Borrowing Decisions

Recent insights from the How India Borrows 7.0 study highlight a clear shift in borrower priorities.

Nearly 46% of borrowers prefer manageable EMIs. Meanwhile, 38% value quick loan disbursal, and 37% look for features like early loan closure.

As a result, demand for transparent and flexible credit solutions continues to rise.

Consumers Seek Transparency in Lending

Borrowers today are more informed than before. They compare options. They read terms carefully. Most importantly, they want clarity.

This trend reflects a strong move toward customer-centric lending. It also aligns closely with long-term financial planning needs.

Therefore, lenders that focus on trust and simplicity gain stronger consumer confidence.

Responsible Borrowing Gains Importance

At the same time, borrowing behaviour is becoming more cautious. Consumers now think beyond instant access to funds.

As unsecured lending expands, the need for financial awareness grows. Responsible credit usage is becoming a shared responsibility between lenders and borrowers.

Consequently, education and guidance remain critical.

Expectations from the Union Budget 2026

Looking ahead, the Union Budget 2026 credit outlook raises important expectations.

Industry leaders hope for measures that strengthen responsible lending. These include wider financial literacy programs, stronger transparency rules, and deeper investment in advanced credit infrastructure.

Such steps can help consumers borrow with confidence and clarity.

Building on the 2025 Budget Momentum

The 2025 Union Budget laid a strong base. It focused on boosting consumption, expanding digital public infrastructure, and improving financial inclusion.

Building on this progress, the Union Budget 2026 credit outlook could help credit emerge as a true enabler of financial independence.

If done right, lending can support everyday resilience for millions of Indian households.

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