New Delhi, Oct. 17 -- India's festive season shopping spree this year is being driven not just by demand for luxury items like smartwatches and jewellery, but also by a surge in microloans powering purchases of less-expensive products such as protein powders and hair dryers.

Fintech startups such as Snapmint and Kiwi are seeing a rush of young shoppers avail low-interest consumer loans for their festive season purchases.

Snapmint, a Mumbai-based non-banking financial company, facilitates sales of multiple brands on its platform via interest-free loans that can be repaid in equated monthly installments (EMIs). In September, Snapmint saw its total volume of interest-free EMI transactions surge to more than 1 million from about 350,000 a y...