A report from digital lending platform BharatLoan revealed a 30% rise in applications for short-term personal loans leading up to Holi. The average loan amount varied between ₹40,000 and ₹50,000, with the majority of borrowers being aged 30–35.
Travel topped the list of reasons for borrowing, followed by gifting and home celebrations.
The data indicates that many working professionals are leveraging short-duration credit to finance planned trips and manage festive costs without impacting their monthly budgets. Tier 2 cities represented 55.2% of the festive credit demand, while Tier 3 cities contributed 60.28%, highlighting a growing digital credit adoption beyond metropolitan areas.
This uptick in borrowing aligns with a notable surge in travel. Travel platform ixigo reported a 70–75% year-on-year (YoY) increase in flight bookings for the Holi 2026 week. Its bus service, AbhiBus, saw over 70% YoY growth in advance bookings, reflecting a strong demand for intercity travel.
Tier 2 and 3 cities drive travel growth
Flight bookings from smaller cities surged significantly. Gorakhpur experienced a remarkable 94% YoY increase, followed closely by Bhopal (89%), Kanpur (86%), Darbhanga (76%), Varanasi (72%), Lucknow (68%), Ranchi (67%), and Patna (54%).
In terms of leisure hotspots, Udaipur enjoyed a 94% YoY rise in bookings, Dehradun 90%, and Srinagar 85%. Goa saw an 81% increase, Jaipur 73%, and Darjeeling 65%, showcasing strong interest in cultural and holiday destinations.
Metro cities also recorded double-digit growth rates. Ahmedabad witnessed a 118% YoY spike in flight bookings for the Holi week, followed by Hyderabad (108%) and Chennai (101%). Kolkata recorded an 89% rise, while New Delhi and Pune posted 80% growth each. Bengaluru had a 77% increase, and Mumbai saw a 54% uptick compared to last year.
Advance bus bookings reflected similar trends, particularly on routes impacted by train waitlists.
According to AbhiBus data, the Delhi–Lucknow and Delhi–Varanasi routes grew over 60% YoY, while Mumbai–Pune and Mumbai–Nagpur routes increased by 75%. The Hyderabad–Vijayawada and Hyderabad–Bengaluru routes recorded a 70% rise, with the Bengaluru–Chennai corridor achieving 65% growth. Women travelers represented nearly 40% of the total bus seats booked so far, with advance bookings by women increasing by close to 80% YoY.
Aloke Bajpai, Co-founder and Group CEO of ixigo, noted that the mid-week timing of Holi has prompted travelers to extend their holiday plans. He highlighted two concurrent trends: a rush back to hometowns in Tier 2 and 3 cities and a surge in leisure travel to locations such as Udaipur, Srinagar, and Goa.
Industry experts indicate that this shift in behavior is transforming Holi into a key travel event on the annual calendar.
Karan Agarwal, Director at Cox and Kings (a Wilson & Hughes portfolio company), mentioned that Holi has morphed into a multi-day celebration of culture and leisure travel.
He stated that heritage destinations like Jaipur, Udaipur, Vrindavan, and Pushkar are experiencing robust growth, while metro cities such as Bengaluru and Mumbai are promoting short-haul international travel to places like Dubai and Thailand. This trend signals a broader change in traveler behavior, with Holi emerging as a catalyst for both domestic cultural tourism and outbound leisure travel.
Festive credit meets planned travel
Overall, the data suggests a convergence between festive expenditures and structured financial planning. With travel emerging as the key motivator for borrowing, short-term digital loans are being utilized to fund deliberate experiences rather than emergency needs.
