A report from the digital lending platform BharatLoan revealed that short-term personal loan applications surged by 30% leading up to Holi. The average loan amount ranged from ₹40,000 to ₹50,000, with borrowers aged 30–35 representing the largest demographic.
Travel was reported as the primary reason for borrowing, followed by gifting and home festivities.
The data indicates that many professionals are utilizing short-term credit to finance planned trips and manage festive expenditures without affecting their monthly budgets. Tier 2 cities contributed to 55.2% of the festive credit demand, while Tier 3 cities saw an impressive participation rate of 60.28%, showcasing a broader adoption of digital credit outside major metropolitan areas.
This borrowing spike aligns with a notable rise in travel. The travel platform ixigo recorded a year-on-year (YoY) increase of 70–75% in flight bookings for Holi 2026. Its bus service, AbhiBus, experienced over 70% YoY growth in advance bookings, indicating a strong demand for intercity travel.
Tier 2 and 3 cities drive travel growth
Flight bookings from smaller cities saw significant increases. Gorakhpur topped the list with a 94% YoY growth, followed by Bhopal (89%), Kanpur (86%), Darbhanga (76%), Varanasi (72%), Lucknow (68%), Ranchi (67%), and Patna (54%).
In terms of leisure destinations, Udaipur experienced a 94% YoY rise in bookings, with Dehradun at 90% and Srinagar at 85%. Goa reported an 81% increase, followed by Jaipur at 73% and Darjeeling at 65%, highlighting a strong interest in cultural and vacation hotspots.
Metro cities also experienced double-digit growth. Ahmedabad noted a striking 118% YoY increase in flight bookings for Holi week, with Hyderabad at 108% and Chennai at 101%. Kolkata experienced an 89% rise, while New Delhi and Pune each logged 80% growth. Bengaluru saw a 77% increase and Mumbai reported a 54% rise compared to last year.
Advance bus bookings echoed this trend, especially on routes impacted by train waitlists.
Data from AbhiBus revealed that routes like Delhi–Lucknow and Delhi–Varanasi grew over 60% YoY, while Mumbai–Pune and Mumbai–Nagpur registered a 75% increase. Hyderabad–Vijayawada and Hyderabad–Bengaluru experienced a 70% rise, while the Bengaluru–Chennai corridor saw a 65% growth. Notably, women travelers made up nearly 40% of the total bus seats booked, with advance bookings by women rising close to 80% YoY.
Aloke Bajpai, Co-founder and Group CEO of ixigo, mentioned that the mid-week occurrence of Holi has prompted travelers to create extended holiday periods. He pointed out two parallel trends: a surge of people returning to their hometowns in Tier 2 and 3 cities and a rise in leisure travel to destinations such as Udaipur, Srinagar, and Goa.
Industry experts suggest that this behavioral change is transforming Holi into a significant travel event in the annual calendar.
Karan Agarwal, Director at Cox and Kings (part of the Wilson & Hughes portfolio), stated that Holi has developed into a multi-day cultural and leisure travel timeframe.
He highlighted that heritage sites like Jaipur, Udaipur, Vrindavan, and Pushkar are thriving, while metro cities such as Bengaluru and Mumbai are facilitating short-haul international travel to locations like Dubai and Thailand. According to him, this trend reflects a broader shift in travel behavior, with Holi becoming a catalyst for both domestic cultural tourism and outbound leisure trips.
Festive credit aligns with planned travel
Overall, the data indicates a convergence between festive spending and structured financial planning. With travel emerging as the primary factor for borrowing, short-term digital loans are being utilized to fund planned experiences rather than urgent needs.
