Comfort with credit, now at a younger age
personal loan, and 24% took a credit card before turning 25. In contrast, those born in the 1980s and now in their early to mid-30s or early 40s accessed credit for the first time at an average age of 28, while those born in the 1970s, currently in their early to mid-40s or early 50s, took their first loans at an average age of 38. The study results point to an increasing acceptance of credit among the young, in contrast to how their elders borrowed only for necessities.
Outstanding bank loans to individuals have touched ₹ 47 trillion, accounting for 32% of total bank credit, as per data from the Reserve Bank of India (RBI). Bankers have often said that the rise in unsecured credit — a category within the universe of retail loans — is not just because banks are pushing them but also because there is an increasing demand and comfort among consumers to borrow. “The age at which consumers are taking credit is decreasing rapidly.
Not only are consumers more comfortable with credit, they have more choices in the retail credit market," Radhika Binani, chief product officer of Paisabazaar, said in an interview. This, Binani said, is because youngsters are willing to finance large purchases on equated monthly instalments (EMIs) and are taking personal loans for travel, smartphones and gadgets. “There is demand as well as supply of loans in the market right now.
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