Youngsters in India start their credit journey in their 20s, shows study

Consumers have started their credit journeys at a significantly younger age with each passing generation, revealed an internal analysis by Paisabazaar. This analysis was based on the data of consumers who have checked their credit score from Paisabazaar over the years, along with a consumer survey.

While consumers born in the 1970s typically availed their first credit product in their late 30s or early 40s, those born in the 1990s began their credit journey in their mid-20s – an over 15-year drop in credit adoption age, clearly indicating easing of access and shift in consumer mindset in availing credit.

The analysis highlights a generational shift not just in the age, but also in the types of products availed to begin the credit journey. While older generations took secured loans like home or auto loans as their first credit product, those born in the 1990s – entered the credit ecosystem typically via unsecured products like credit cards, personal loans, along with consumer durable loans, often by age 25-28.

Home loans

Home loans, traditionally accessed later in life, are also being availed earlier, with the average age falling from 41 (for 70s-born) to 28 (for 90s-born). Similarly, the average age for business loans has dropped from 42 to 27, reflecting India’s growing entrepreneurial spirit and better access to MSME lending products.

The findings also show that consumers born after 2000 are continuing this trend, with early signs of even earlier credit adoption – often starting around the age of 22, primarily via small-ticket loans and Buy Now Pay Later (BNPL) products.

Radhika Binani, Chief Product Officer, Paisabazaar, said, “Today’s young consumers are more aware, aspirational, and digitally savvy. They are not only accessing credit earlier but also using it more confidently and diversely – whether to meet life goals or lifestyle and aspirational needs. Our analysis also indicates the evolution of the ecosystem, easing access over time. We remain committed to empowering consumers with the right tools and guidance to build healthy credit behaviours from the start.”

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