Luxury on Credit: How Influencers & Celebrities use unsecured finance

Ever wondered how influencers afford luxury cars, designer outfits, and dream vacations? 

According to RBI’s sectoral data on bank credit, personal loans increased by 14.4%, reaching nearly Rs 55.3 lakh crore. They held the largest share of non-food credit at 32.9%, followed by services at 27.4%, industry at 22.2%, and agriculture and allied activities at 12.8%.

The truth is many influencers and celebrities take personal loans to maintain their image and grow their brand. 

In this WeCredit blog, let’s find out if borrowing like influencers and celebrities makes sense for everyone.

What Can You Learn from Influencers Who Use Loans to Build Their Brand?

Influencers requires strong personal brand to make money. This leads to investing in high-quality content, fashion, travel, and sometimes even expensive gadgets and tech. Apart from a personal high income, they opt for personal loans, and these enable them to meet this expenditure without waiting for their income to increase.

For instance, a would-be fashion influencer may borrow money to purchase designer clothes, pay for a photographer, or go to fashion-forward destinations. This investment can result in brand partnerships and sponsorships, generating additional revenue. 

However, not all influencers are successful. If their income fails to increase as anticipated, loan payments become onerous. But not every influencer succeeds. If their earnings do not grow as expected, loan repayments become a burden. 

What can you learn?

If you plan to take a loan, ensure that the money helps you grow financially. Borrowing for unnecessary luxury can be a risky decision. But borrowing to invest in personal growth that increases income can be a smart move.

Do Banks Treat Influencers Differently for Loans?

Indeed, banks and financial institutions look at influencer’s different treatment. Unlike common salaried employees have fixed monthly incomes, making it easier for banks to assess their repayment ability. Influencers often have fluctuating earnings, which makes loan approval tricky. 

Some banks want influencers to show a steady income history, while others offer personal loans based on social media presence and brand collaborations. A strong credit score, stable earnings, and proof of past income improve their chances of approval. 

If you are self-employed or have irregular income, a personal loan may require extra paperwork. Proper financial planning and maintaining a good credit score help in securing a loan on better terms.

Why Do the Rich and Famous Borrow Money?

It might surprise you, but even celebrities and influencers take out loans. The reason is simple—smart money management. Instead of tying up their cash, they keep it available for investments, business opportunities, or emergencies. Borrowing helps them stay financially flexible while growing their wealth.

Picture a famous person purchasing a fine automobile—not with money, but with a loan. Why? Because rather than tying up a huge sum of their money in a single investment, they have it available for larger opportunities. That cash could go into high-growth investments, a new business venture, or even real estate that builds long-term wealth.

It’s a smart strategy when done right. But there’s a flip side—reckless borrowing. Taking on too much debt without a solid plan can lead to financial trouble, no matter how wealthy someone is. The key is knowing when to borrow and when to spend wisely.

Also Read: Get an Urgent ₹10,000 Loan Without a CIBIL Score

How to Avoid the Pitfalls of Influencer-Style Borrowing?

Borrowing like an influencer without proper financial planning is risky. Many influencers face financial trouble due to overspending and poor loan management. Here’s how to stay safe:

1. Borrow Only When Needed – If a loan does not bring financial growth, reconsider taking it. Avoid borrowing just to impress others.
2. Check Loan Terms – Understand interest rates, EMI structure, and repayment period before signing any loan agreement.
3. Stick to a Budget – Plan your monthly expenses and loan repayments to avoid financial stress.
4. Compare Lenders – Different banks and NBFCs offer different loan terms. Choose one that suits your needs.
5. Build a Good Credit Score – A higher score helps in getting better loan offers with lower interest rates.
6. Avoid Multiple Loans – Managing too many loans at once leads to financial strain. Borrow only what you can repay comfortably.

Conclusion

Personal loans help influencers and celebrities maintain their lifestyle and grow their brand. But borrowing without a planning lead to financial trouble. Whether you are an aspiring influencer or someone looking for a personal loan, the key is responsible borrowing.

If you need a loan for the right reasons, WeCredit offers personal loan solutions with flexible terms. Choose wisely, borrow smartly, and ensure that every financial decision supports your future growth.