Personal Loan Search Trends in India: Harnessing Digital Marketing to Unleash

The number of searches for personal loans in India is growing rapidly, indicating an evolution in customer behavior we have not seen before. Searches for personal loans extend to emergencies, home & vehicle purchases, marriages, vacations, and more. What opportunities do these search trends present for financial institutions and loan providers? Techmagnate, a leading digital marketing agency in India, has the answer.

In the dynamic landscape of India's financial sector, non-banking financial companies (NBFCs), traditional banks, and lending institutions are presented with an unparalleled opportunity to harness the surging search trends in the personal loan market.

A report by Techmagnate,a leading digital marketing agency in India, analyzed search trends for the personal loan industry based on their volumes, types of queries, and even their market shares.

By delving into the data and insights from recent search trends, financial institutions can strategically amplify their digital marketing efforts to capture a growing audience whose needs have not been fully catered to yet.

Understanding the Personal Loans Search Trends in India

Techmagnate’s comprehensive analysis of over 18,000 keywords reveals that the overall Personal Loans industry in India witnessed significant growth in search volume, with a substantial 25.73% increase from 51.64L searches in FY’22 to 64.92L searches in FY’23.

India’s Personal Loan Industry: The State of the Market

Data from the Reserve Bank of India (RBI) shows that personal loans have grown by 30.8% in August 2023 as compared to the previous year. While the RBI is cautioning banks and lending institutions to put stringent checks in place for loan disbursals, the data on hand corroborates with what people are searching for.

Additionally, the total credit to borrowers was INR 47.7 trillion in Aug’23, which is up from INR 36.7 trillion just a little over a year ago.

Leading the Way: The Top 5 Indian Brands for Personal Loans by Search Volumes

While the data from Techmagnate’s search trends report takes a look at the Top 20 brands by search volumes (SV) in India, we’re taking a closer look at the Top 5 in this article.

There’s no surprise that the heavy hitters of the Indian market - i.e. HDFC Bank, SBI, Bank of Baroda (BoB), ICICI Bank, and Axis Bank are leading the way with search volumes.

HDFC Bank has experienced a substantial 7.12% growth in search volumes from FY‘22 to FY‘23, solidifying its position as a leading brand.

For HDFC, the market share of 23.46% indicates a significant share of consumer interest in personal loans.

On the other hand, while coming in at the 2nd position, SBI witnessed a slight decrease of -2.52% in search volume, reflecting a marginal dip in interest from FY‘22 to FY‘23.

Despite the decrease, SBI retains a substantial market share of 17.62%, underscoring its enduring prominence.

Bank of Baroda exhibited remarkable growth with a staggering 158.61% increase in search volume, signaling a significant rise in consumer interest.

According to Sarvesh Bagla, CEO and founder of Techmagnate, these search trends reveal a valuable opportunity for brands. “Our Personal Loans Search Trends Report clearly shows that more and more Indians are looking for them every year. According to the data, searches across the entire industry have grown by 19% in the last year.

Meanwhile, searches for Instant Personal Loans have grown by 31% and searches from Tier 2 & Tier 3 cities contribute to over 55% of the total search volumes. All of these numbers clearly show that there’s an opportunity for banks, NBFCs, and Fintechs to connect with people searching for their products.”

Download the report to see the full list of brands.

Personal Loans in the Digital Sphere: 3 Niche Opportunities for Success

While taking heed of the RBI’s warning, NBFCs, banks, and lending institutions should recognize the momentum of searches for loan trends in India and align their digital strategies to capitalize on the growing interest.

How can these institutions step forward to cater to their consumers’ needs and evolving behavior? A strong digital marketing strategy must lead the way by tapping into the niche opportunities available.

Techmagnate’s report reveals 3 clear opportunities within the search trends for financial institutions and Fintechs to explore.

a) Searches for low credit scores

b) “Near me” or local searches for personal loans

c) Vernacular searches

1.Personal Loans with Low Credit Scores

As the Search Trends Report from Techmagnate indicates, searches for “personal loan with low credit score” have grown by a healthy 55.57% in the span of a single financial year.

Ostensibly, people are looking for avenues to help bolster their income while understanding how cumbersome it could be to get loan approvals due to their low scores.

Moreover, while people are conducting this particular search, many financial institutions exist that offer loans to people with low credit scores as well.

Yet, the remarkable 55.57% growth in searches for "Personal Loan with Low Credit Score" remains an untapped niche. NBFCs and lending institutions can position themselves as inclusive financial partners catering to the unique needs of individuals with credit challenges.

2.Tap into Local Searches for Personal Loans

The data for “near me” or local searches offers the most interesting window of opportunity for lending institutions.

While one would expect brand keywords to lead the way, the non-brand searches are the ones drawing in the most volumes across the country.

The non-brand category, representing general local searches without specifying a particular brand, has demonstrated a steady 16.65% growth in search volume.

With an overwhelming market share of 99.62%, non-brand local searches continue to be the predominant drivers of local interest in the personal loan industry.

3. Harness the Potential of Vernacular Searches

With vernacular searches as well, the contribution of non-brand keywords commands a staggering 95.32% market share.

While the overall branded search volumes have grown, the non-branded search volumes continue to create the strongest opportunity for lending institutions to connect with their consumers.

With all of these instances, a comprehensive local marketing strategy that addresses both brand and non-brand categories can effectively tap into the diverse local landscape of personal loan searches.

Innovative Strategies for Brands to Consider

Develop tailored financial products that consider risk factors associated with low credit scores.

Implement educational content to empower consumers and dispel myths about obtaining loans with less-than-perfect credit.

Collaborate with credit bureaus to assess and manage risk effectively.

Address people's needs through interactive vernacular content.

Implement a robust local search strategy to address the needs of people looking for personal loans near them.

Within auto-finance search trends, we see similar preferences for local services.

The Digital Frontier of Financial Marketing

As the Search Trends Report from Techmagnate shows, in the evolving search landscape of personal loans in India, the synergy between data-driven insights and innovative digital marketing strategies can propel NBFCs, banks, and lending institutions to unprecedented heights.

By adapting to the shifting preferences of consumers and leveraging niche opportunities, these financial entities can not only stay ahead of the competition but also contribute to the financial empowerment of a diverse and growing market.

Get ahead in the digital marketing game. Download the Personal Loans Search Trends Report today.

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