Travel loans vs home loans: Are Indians borrowing more for vacations? CA explains

Indians are borrowing for experiences more than ever, and travel is leading the charge. From weekend getaways to bucket-list vacations, loans for holidays are now outpacing traditional borrowing for homes, credit cards, medical bills, and even weddings. CA Nitin Kaushik points out that this isn’t just a lifestyle trend — it’s a shift in spending habits that’s sending ripples across the financial and investment landscape.

According to Kaushik, for the first time, travel loans are taking the top spot over other common loans like home improvement, credit card repayment, education, medical expenses, and weddings. This signals that consumers are prioritising experiences over assets, a trend that’s reshaping how India spends and invests.

He claimed that India’s “YOLO” generation isn’t just spending money — it’s influencing market trends and creating new investment opportunities. The question for investors is clear: are you putting your money where modern India is spending?

EMI Stress and long-term debt

In India, vacations have officially become the top reason to borrow money, surpassing home renovations, medical bills, and even weddings. While a getaway may feel like a fun escape, CA Nitin Kaushik warns that personal loans for travel can quietly turn into months of EMI stress and long-term debt.

According to a Paisabazaar survey of over 5,700 borrowers across 97 cities, 27% of personal loans in the first half of 2025 were taken for holidays, up from 21% in 2023. Travel now leads borrowing for home improvements (24%), credit card repayment (11%), medical needs (9.6%), education (6.1%), and weddings (5.4%).


Kaushik highlights the hidden pitfalls of borrowing, from taking loans for vacations or school fees to missing repayments to friends, hunting the house for spare change, or skipping outings due to financial strain. Small actions can snowball into big stress, and even minor delays or oversights can turn into debt traps.

The key, he emphasises, is to start managing money early. Tracking expenses, avoiding unnecessary loans, building emergency savings, and even investing small amounts like ₹500 a month can gradually improve financial health. Fun and experiences are important, but smart borrowing ensures they don’t come at the cost of long-term stability.