Bajaj Finance Ltd. (BFL) recorded a strong festive season performance this year, reflecting both rising consumer demand and the impact of recent tax and GST reforms. Between 22 September and 26 October 2025, the company disbursed around 6.3 million consumer loans, marking a 27% year-on-year (YoY) increase in loan volume. In terms of value, loan disbursements grew even faster, up 29% YoY during the same festive period, showing that the spending appetite of Indian households remains robust.
BFL also added 2.3 million new customers in this period, and interestingly, about 52% were “new-to-credit”, meaning these individuals were taking their first-ever loan. This is an important data point because it shows how Bajaj Finance is deepening financial inclusion and expanding its customer base into segments previously outside the formal lending system. For a lender, tapping new borrowers early creates potential for long-term customer relationships and repeat business.
A particularly striking trend this season was premiumisation, the move by consumers towards higher-end products. For example, within TV financing, large-screen models (>40 inches) accounted for 71% of all TV loans, up from 67% last year. This shift indicates that customers are not just buying more, but buying better. It also signals confidence among middle-class households and urban buyers who are choosing premium upgrades despite broader economic uncertainties.
However, there’s an interesting countertrend: the average ticket size of loans actually fell by about 6%. At first glance, that might look like a slowdown, but the reason lies in lower GST rates on key consumer goods such as TVs and air-conditioners. The price drop from GST cuts made these products more affordable, allowing a larger number of consumers to upgrade, effectively boosting both loan volumes and product sales, even if individual loan amounts were smaller.
According to Chairman Sanjiv Bajaj, this performance is directly linked to the government’s recent tax reforms that have increased disposable income and enhanced household purchasing power. For BFL, this alignment between fiscal policy and consumption finance is ideal: when policy supports spending, lenders like Bajaj Finance benefit from a surge in borrowing and product demand.
From an investor’s perspective, this is a classic “consumption wave” story. Bajaj Finance is not only capturing higher transaction volumes but also penetrating new credit segments and benefiting from consumers trading up to better products. This makes its festive performance a structural positive, not just a seasonal spike.
That said, there are important caveats. The rapid expansion among first-time borrowers brings asset-quality risk, how these new customers behave over the credit cycle will matter. Similarly, while disbursements have grown fast, margin pressure could emerge if the cost of funds rises or if competition forces lenders to price aggressively. The NBFC and fintech lending space is crowded, and sustaining market share without compromising on credit quality will be crucial.
For now, BFL’s festive data shows strong momentum and a favourable demand backdrop. Whether this strength holds in coming quarters will depend on macro stability, consumer sentiment, and how effectively Bajaj Finance manages its risk-return balance in a rapidly expanding market.