Why personalised loans are becoming the go-to option in 2026

The journey of hyper-personalisation in personal loans is going to get more exciting for customers with the increasing adoption of technology refining customer offerings, based on minute details of the customers.

“Technology should do the hard work, so people can do the things that make them the happiest in life.” Globally, banks have taken the words of the Co-founder of Google, Larry Page’s enlightenment in the right spirit. Many are moving towards re-imagining high-demand products like personal loans through the lenses of optimum customer centricity.

They are mastering their ability of collection and intelligent application of data within their banking systems to maintain a competitive edge as well as to cultivate enduring trust and loyalty. From anticipating customer needs to provide them with pertinent solutions even before many scenarios arise, banks are travelling with the customers in their ‘moment of need’ to their ‘moment of panic,’ deepening customer understanding and customising the solutions.

Perhaps, that’s why personal loans continue to be one of the fastest growing credit segments in India, with assets under management (AUM) reaching Rs 15.9 lakh crore as of September 2025, growing at 13% year-on-year. Thanks to faster disbursals, user-friendly interfaces and deepening credit inclusion in semi-urban and rural areas, personal loans continue to grow at a healthy pace with more customers gaining confidence to chase their lifestyle aspirations.

Personalised to perfection: In fact, banks are perfecting the art of personalisation or providing each customer with a distinct loan offer that takes into account the respective income, credit history, lifestyle, and ability to repay, rather than offering a generic product.

From the world go – when they get in touch with the bank till the completion of their final EMI payment, the experience is well-designed to feel customised and comfortable. Also, modern customers anticipate a certain degree of finesse, relevance, safety and clarity in their dealings.

Technology has become the true enabler: Here, technology, especially data and analytics, has played a big role. Constant data collection and analytics aid banks to predict the likely need – be it travel, a new phone or a home upgrade, the affordability, risk tolerance and the disbursable amount for every customer.