Archive · 15 Jan 2026
Younger Borrowers Drive India's Credit Growth
Younger people in India are taking more loans, especially for things like credit cards and personal loans.
This is helping the country's overall loan growth.
However, these younger borrowers sometimes have trouble paying back their loans, especially in the beginning.
People in their 30s and 40s still make up the biggest part of all loans.
Different types of banks focus on different age groups for lending.
Overall, young people are playing a big role in India's growing loan market.
Younger borrowers (30 and below) are leading new credit entry and unsecured lending growth.
Borrowers aged 31-40 account for the largest share of outstanding loan value and balances.
Overall asset quality improved, but younger borrowers show higher early-stage delinquencies, especially in unsecured loans.
Unsecured lending dominates retail credit, with younger borrowers leading in consumer durable loans, credit cards, and personal loans.
Private sector banks and non-banking financial companies target younger borrowers for unsecured products, while public sector banks focus on more mature borrowers for secured lending.
- Who
- Younger borrowers (30 and below) and mid-age borrowers (31-40)
- What
- Growth in retail credit and loan portfolios
- When
- Between November 2024 and November 2025
- Where
- India, with notable activity in Uttar Pradesh and Maharashtra
- Why
- Due to rising aspirations, improved access to finance, and different lending strategies by financial institutions
- Youngest Borrowers
- 25 and below
- Fastest Growing Borrowers
- 26-30
- Largest Share of Outstanding Loans
- 31-40
- Highest Early-Stage Delinquencies
- 30 and below
- Leading States for Young Borrowers
- Uttar Pradesh, Maharashtra
- Unsecured Lending Share
- Large
- Secured Lending Focus
- 31-50
