More and more young Indians are jumping onto the credit bandwagon earlier than ever before. A recent internal analysis by Paisabazaar suggests a major generational shift in how—and when—Indians begin their credit journey.
While earlier generations typically waited until their late 30s or even 40s to borrow for the first time, millennials and Gen Z appear to be getting started well before their 30th birthday.
According to Paisabazaar’s analysis, based on years of user credit score data and a supporting consumer survey, those born in the 1970s usually began their credit journey in their late 30s to early 40s—often with a home loan or an auto loan. Fast forward a couple of decades, and it’s a different story.
Consumers born in the 1990s are typically taking their first credit product—often an unsecured one like a personal loan or a credit card—in their mid-20s. That’s a sharp drop of over 15 years in the average credit adoption age. And the shift isn’t just about age—it’s about the type of credit as well.
Where earlier generations leaned on secured loans backed by assets, today's borrowers seem more comfortable starting with unsecured products, including consumer durable loans and Buy Now Pay Later (BNPL) options.
The idea that home loans are something you consider once you’ve “settled down” is gradually losing ground. According to the analysis, the average age for taking a home loan has dropped from 41 among those born in the 1970s to just 28 among those born in the 1990s. That’s a 13-year shift, suggesting that younger consumers are either getting on the property ladder earlier—or at least starting to think about it sooner.
Business loans are following a similar trend. The average age for taking a business loan has fallen from 42 to 27, reflecting what many interpret as a rise in India’s entrepreneurial ambitions, and possibly, easier access to MSME-focused lending products.
The youngest cohort in the data—those born after 2000—seem to be continuing this trend and possibly taking it even further. Early indicators suggest many are entering the credit ecosystem around the age of 22, often through small-ticket loans or BNPL schemes tied to online shopping platforms.
It’s still early days for this group, but if the trend holds, India could see a generation that is not just digitally native but also credit native, using financial tools with a confidence that might have been rare a few decades ago.
Paisabazaar’s CPO Radhika Binani was quoted as saying that younger consumers today are more aware, aspirational and digitally comfortable. She noted that this cohort is accessing credit earlier and using it more confidently for both life goals and lifestyle choices.
While the analysis doesn’t claim to answer every “why,” the numbers do appear to reflect a combination of easier access to credit products, changing attitudes toward borrowing, and a broader evolution in India’s financial ecosystem.
This rising comfort with early borrowing raises an interesting question—are younger consumers better equipped to handle credit, or are they more exposed to risk?
It’s too early to say. Much will depend on how financial institutions, fintech platforms, and consumers themselves approach credit education, repayment discipline, and long-term planning. For now, though, the data points to a clear trend: the average Indian is getting a credit score, a loan, or a card significantly earlier than their parents did.
And if BNPL and other instant credit models continue to gain ground, this gap may only grow in the coming years.
(This article is based on an internal analysis by Paisabazaar, which used consumer credit score data and survey responses)