5 days ago
Gen Z Credit Use Grows as Repayment Struggles Continue
More young people are getting access to loans and credit.
In 2024, about one in seven people aged 18 to 25 had credit.
Three years earlier, the figure was about one in eleven.
Young borrowers often use credit to buy appliances, motorcycles, and items with credit cards.
The government wants banks to build relationships with young customers from school or college through their careers.
A campaign called “Banking for Youth” will begin on October 2 and last for a month.
However, Gen Z has the highest rate of late payments among age groups.
This raises questions about whether the campaign will also help young people repay what they borrow.
Finance Minister Nirmala Sitharaman asked public sector banks to build long-term relationships with young customers.
A month-long “Banking for Youth” campaign for people aged 16 and above is set to launch on October 2.
Credit access among 18- to 25-year-olds rose to one in seven in 2024, from about one in eleven three years earlier.
Young consumers increasingly use credit for consumer durables, credit cards, and two-wheeler loans.
Gen Z borrowers had the highest delinquency rate, with 30-plus-day overdue payments at 2.9% in 2024 and 2.7% in 2025.
- Who
- Finance Minister Nirmala Sitharaman, public sector banks, and young borrowers, including Gen Z.
- What
- The government is promoting a youth-focused banking campaign as young people’s use of credit increases while repayment problems remain comparatively high.
- Where
- When
- The campaign is scheduled to launch on October 2; the cited credit and delinquency figures cover 2024 and 2025.
- Why
- To build long-term banking relationships with young people across life stages, while addressing concerns about repayment.
Youth Banking Expansion
Repayment Concerns
Purpose of the campaign
Youth Banking Expansion
Supporters say stronger relationships between public sector banks and young customers can serve them across stages from campus to career.
Repayment Concerns
Critics may question whether expanding youth credit access is sufficient if borrowers struggle to keep up with repayments.
Growing credit access
Youth Banking Expansion
The rise in credit access among 18- to 25-year-olds indicates that young people are increasingly participating in formal borrowing.
Repayment Concerns
Gen Z’s highest age-group delinquency rate highlights the risk that increased borrowing may lead to more repayment problems.
Key facts
- Campaign
- “Banking for Youth”
- Target age
- Individuals aged 16 and above
- Launch
- October 2
- Credit access
- One in seven 18- to 25-year-olds had access to credit in 2024
- Previous level
- About one in eleven young adults had access to credit three years earlier
- Preferred credit uses
- Consumer durables, credit cards, and two-wheeler loans
- Gen Z delinquency
- 30-plus-day delinquency was 2.9% in 2024 and 2.7% in 2025
Sources
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