Consumer borrowing behaviour of Indian youngsters

 | Updated: Feb 21, 2020, 05:51 PM IST

There is a paradigm psychological shift in consumer borrowing behaviour resulting in a significant rise in demand for credit.

Let's take a look at the credit industry's current scenario. 

(Research by Saurabh Goenka)

Credit Active Indian Youth

609 million Indians actively borrow credit. Out of this, 147 million many youngsters borrow 24 per cent through the means of credits. Whereas, 9 million people borrow 6 per cent through the same medium.



6 per cent youngsters in India borrow money in the form of credit. This percentage is much higher in USA, Canada, Hong Kong and South Africa where credit borrowings are 66 per cent, 63 per cent, 49 per cent and 28 per cent respectively.



The most popular credit category for the generation Z are two-wheelers for 21 per cent, educational and personal growth for 14 per cent, mobile phones for 13 per cent and credit card for 11 per cent.


Indian credit system

The segments with highest growth credit cards at 150 per cent, consumer durables 113 per cent and personal loans 95 per cent.


Generation Z

The credit score of Generation Z has been classified into awesome, very good, good, okay and poor. The percentage of the youngsters that fall into this category are as follows: 2 per cent, 9 per cent, 40 per cent, 27 per cent and 22 per cent respectively.