India’s recent tax reforms are translating into tangible consumer confidence, with Bajaj Finance Ltd. reporting a sharp spike in festive-season credit activity. The country’s largest private-sector NBFC posted a 27% year-on-year rise in loan volumes and a 29% jump in loan value between September 22 and October 26, 2025, signalling strong policy-led consumption momentum. The lender disbursed nearly 63 lakh consumer loans during the period and added 23 lakh new customers. Notably, 52% were first-time borrowers — a key indicator of expanding financial inclusion and deeper penetration of formal credit into emerging consumer segments.
The surge reflects the impact of the government’s Next-Generation GST reforms, unveiled in September as part of the “GST Bachat Utsav,” alongside recent personal income tax tweaks aimed at boosting disposable income. Lower GST rates on consumer electronics, especially televisions and air-conditioners, helped reduce average loan ticket sizes by 6%, while simultaneously encouraging consumers to upgrade. Loans for televisions sized 40 inches and above climbed to 71%, up from 67% last festive season.
Commenting on the trend, Chairman Sanjiv Bajaj said the reforms had empowered middle- and lower-income households to spend confidently. With 239,000 distribution points across 4,200 locations and a strong digital platform, the company remains positioned to support India’s policy-driven consumption and inclusion agenda.
