Brand Experience

Growing Search Trends Personal Loans India Opportunities Financial Institutions

23 March, 2024

As India’s financial landscape evolves at an unprecedented pace, the surge in online searches relating to personal loans is drawing increased attention. In fact, the robust spike in these queries showcases the shifting consumer trends. From emergency funds to major life expenses like home and vehicle acquisition, weddings, and vacations, it’s clear that personal financing is on the minds of many. But what does this mean for the financial sector, and how can institutions like NBFCs, banks, and fintech companies leverage this trend to attract More Gym Members, figuratively speaking, to their services?

The personal loan sector in India has seen a remarkable climb in interest, as evidenced by a significant 25.73% increase in search volume from 51.64L (Lakh) searches in FY’22 to 64.92L searches in FY’23. Such growth in online engagement points to an untapped market and an opportunity that savvy marketers cannot ignore. This trend reflects deeper economic currents, with the Reserve Bank of India reporting a 30.8% growth in personal loans as of August 2023, compared to the same period last year. This surge has propelled the total credit volume to borrowers to INR 47.7 trillion, marking a substantial increase from INR 36.7 trillion.

In the league of personal loan providers, heavyweights such as HDFC Bank, SBI, Bank of Baroda, ICICI Bank, and Axis Bank rule the search volume charts. Each bank navigates the financial terrain with varying degrees of success, but together they hold a massive share of the market’s attention. For instance, HDFC Bank boasts a growth of 7.12% in search volumes from FY’22 to FY’23, claiming a market share of 23.46%. Bank of Baroda, with a 158.61% uptick in search interest, demonstrates the explosive demand for loan options.

The search behavior analysis suggests a valuable proposition; the hunger for personal financing solutions is expanding, especially among the instant loan segment and in Tier 2 & Tier 3 cities—an area contributing over 55% of total online searches.

In bridging the digital sphere to this demand, the potential for success is manifest in a three-pronged approach. For instance, a rise in searches for “personal loan with low credit score” by 55.57% indicates a demographic actively seeking financial solutions despite credit hurdles. It is here that lending institutions can step forward as the go-to option, offering tailored solutions to this group—a Gym Marketing boost by tapping into a special niche that improves financial well-being while being inclusive.

Local “near me” searches for personal loans offer an intriguing window of opportunity. Despite an inclination to trust established brands, a majority of online queries—with a remarkable 99.62% market share—feature non-brand searches. This insight suggests that local presence and visibility are crucial in influencing potential customers’ decisions when it comes to personal loans. The temptation might be to invest heavily in Advertising For Gyms, so to speak, for their own brand recognition but understanding and capitalizing on the potency of local search trends can yield immense benefits.

Lastly, vernacular searches command an important place within this trend. With non-brand vernacular keyword searches holding a staggering 95.32% market share, it’s evident that lending institutions must develop strategies to engage with potential customers in their preferred languages. Just as a targeted Gym Lead Generation campaign reaches potential customers most effectively when it speaks their language, so too should financial services market their offers in the diverse linguistic tapestry of India.

The implications of these search trends extend far beyond the financial sector. They offer insights and parallels to businesses across industries, including those in marketing, such as the fitness industry. For instance, a gym looking to increase membership can learn from these trends by recognizing the importance of targeted local searches, addressing niche client needs, and harnessing the potential of non-brand search queries. Using techniques like targeted Facebook Ads or personalized offerings can mirror the success seen in the evolving personal loan search trends.

In conclusion, financial institutions, NBFCs, and fintech companies have a wealth of opportunities within these evolving search trends. By adopting strategies that speak directly to the wants and needs of India’s emerging borrower profile, they can secure a more substantial footprint in the ever-competitive world of personal finance—much like gyms can grow their memberships by aligning their offerings with local market demands. The development of comprehensive digital marketing strategies that address these insights and adapt to consumer behavior will ensure a competitive edge and a pathway to success.