Personal loans and digital borrowing are now indispensable parts of the daily lives of individuals in the country. These are credit lines that offer borrowers the means to meet urgent and planned expenses such as medical, education, wedding, etc.
In such a scenario, borrowers must also inculcate timely and ethical repayment practices to ensure that borrowing remains a pleasant experience and that the possibility of defaults is also kept in check.
Vibhore Goyal, founder of OneBanc, says, “India’s personal loan book now exceeds ₹14.9 lakh crore, growing 14.2% year-on-year, with non-performing assets having climbed past ₹11,000 crore. Defaults aren’t rising from ethics but weak financial discipline. Repaying loans is like eating well; intent means little without systems that enforce boundaries.
“In today’s world, those systems must be connected and intelligent: AI that personalises cash flows, auto-allocates savings, and reinforces repayment behaviour. Without such guardrails, EMIs clash with volatile incomes, and defaults spiral. Financial resilience demands not moralising debt, but embedding discipline into daily money flows through technology,” he added.
In conclusion, ethical repayment simply projects a borrower as a responsible person. It saves their credit score and protects them from debt traps. Utilising smart technology and combining sensible borrowing can ensure a robust and inclusive personal loan ecosystem in the country. Such an approach can also help reduce defaults and psychological issues related to unhealthy borrowing practices.
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