Banks Master Personal Loans with AI and Data

Banks are increasingly adopting a customer-centric approach to personal loans, utilizing technology like data analytics and Artificial Intelligence (AI). This shift aims to provide highly personalized loan offers tailored to individual income, credit history, and repayment capacity, moving away from standardized products. As of September 2025, the personal loan segment in India demonstrated robust growth, with assets under management reaching ₹15.9 lakh crore and an impressive 13% year-on-year increase.

Technology serves as a key enabler, allowing banks to predict customer needs and assess affordability and risk with greater accuracy. Features like pre-approved loans disbursed in under a minute, flexible EMIs, and part-payment options exemplify this trend. AI further refines decision-making by analyzing real transaction behavior and digital footprints, leading to dynamic pricing and credit limits.

Transparency in terms, interest rates, and charges is prioritized, with digital agreements and app-based dashboards offering customers convenience and control. This focus on customer comfort and tailored solutions fosters trust and leads to stronger, long-term relationships and repeat business. The trend towards hyper-personalization is expected to continue, making loan journeys more seamless and invisible.