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Alarming! Gen Z drives credit boom: Cards, loans being taken as early as 22
The average age at which Indians avail their first credit product has dropped by 21 years, according to a new consumer insights study by Paisabazaar, signalling a sharp generational shift in financial behavior. With easier access to loans and a rise in digital financial literacy, today's consumers are starting their credit journeys in their mid-20s—compared to their parents, who typically began in their late 40s.
Paisabazaar's analysis of credit patterns from over 10 million consumers shows that individuals born in the 1960s took their first credit product, usually a home loan, at an average age of 47, while those born in the 1990s started their credit journeys as early as 25–28, often with credit cards or personal loans.
"Today's young consumers are more aware, aspirational, and digitally savvy," said Radhika Binani, Chief Product Officer, Paisabazaar.
"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," she said. But what is alarming is that Gen Z is starting their credit journeys earlier than any previous generation, often as young as 22. Being highly digital-native, this segment is more comfortable using online financial tools and platforms. Their first experience with credit typically comes through small-ticket loans or Buy Now Pay Later (BNPL) products, which are easily accessible, app-based, and tailored to lifestyle-driven spending habits.
From Age 47 to 25: A 21-Year Shift Across Generations
Consumers born in the 1960s took their first credit product—typically a home loan—at an average age of 47.
Those born in the 1990s entered the credit ecosystem as early as 25–28, often through credit cards, personal loans, or consumer durable loans.
1960s-born:
First credit product: Home Loan
Average age: 47
1970s-born:
First credit product: Auto Loan
Average age: 39
1980s-born:
First credit product: Auto Loan
Average age: 31
1990s-born:
Entry products were diverse: Credit Cards, Personal Loans, Consumer Durable Loans, Auto Loans
Average age: 25–26
Home Loans Are Being Taken Nearly a Decade Earlier
1970s-born: First Home Loan at 41
1980s-born: First Home Loan at 34
1990s-born: First Home Loan at 28
Business Loans Reflect Rising Entrepreneurial Ambition
1970s-born: First Business Loan at 42
1980s-born: First Business Loan at 34
1990s-born: First Business Loan at 27
Gold Loans Still a Safety Net, But Accessed Much Earlier
1960s-born: First Gold Loan at 52
1990s-born: First Gold Loan at 27
Post-2000s Generation: Even Earlier Credit Adoption Begins
First credit experience starts at age 22
Common entry products: Small-ticket loans, Buy Now Pay Later (BNPL) schemes
Gold loans, meanwhile, continue to serve as a financial safety net across generations, though the age of first usage has steadily dropped—from 52 for 60s-born to 27 for those born in the 90s.
Paisabazaar's findings also show that consumers born post-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.
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