Gen Z's buy-now-pay-later habit fuels unsecured loans: RBI worried

Many young people in India are borrowing money to pay for fun things like concerts, trips and shopping, instead of saving up first.

Some start taking loans around age 22, much earlier than their parents or grandparents did.

Because of this, loans used for everyday spending now make up more than half of all the money Indian families owe.

The Reserve Bank of India, the country's money guardian, is worried because some borrowers may not be able to pay the money back.

Lending apps give out many small loans to young customers, and a growing number of these loans are being paid back late.

At the same time, young people love going to concerts, like BTS shows, and traveling to new cities for fun.

One survey found that six in ten young travelers would spend 21 to 40 percent of their monthly income on music trips.

People born after 2000 get their first loan around age 22, often using buy-now-pay-later products.

Some experts say the debts are still small enough not to be a big problem, but the RBI wants to watch closely so people don't get into trouble.