Drop in Average Age of First Credit Product Usage Spans Three Generations, According to Paisabazaar Consumer Findings
In a significant shift, the average age at which individuals begin their credit journeys has decreased by 21 years across three generations, according to a consumer insight study by Paisabazaar. The study, which analyzed credit patterns of over 10 million consumers, revealed that those born in the 1960s typically availed their first credit product at 47, mostly securing home loans. In contrast, consumers born in the 1990s began their credit journey at around 25-28 years of age, opting for unsecured products such as credit cards, personal loans, and consumer durable loans.
This trend continues with Generation Z, who start their credit journeys even earlier, often as young as 22. They tend to utilize small-ticket loans and Buy Now Pay Later (BNPL) products, which cater to lifestyle-driven spending habits. Overall, the average age for accessing credit has dropped by approximately 21 years from the 1960s generation to the 1990s generation, indicating a generation of more digitally savvy, aspirational, and financially confident consumers.
Radhika Binani, Chief Product Officer of Paisabazaar, commented on the findings, stating, "Today's young consumers are not only accessing credit earlier but also using it more confidently and diversely. Our analysis indicates the evolution of the ecosystem, easing access over time. At Paisabazaar, we remain committed to empowering consumers with the right tools and guidance to build healthy credit behaviors from the start."
In addition, the study found that home loans, traditionally accessed later in life, are now 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 easing access to MSME lending products. Conversely, gold loans continue to serve as a financial safety net across generations, though the age of first usage has steadily dropped.
The analysis also highlighted that consumers born post-2000 are continuing this trend, with early signs of even earlier credit adoption, often starting around the age of 22. These trends underscore the growing financial literacy, changing attitudes towards credit, and the increasing convenience of digital credit products in shaping a new generation of credit users.
Founded in 2011 and part of the PB Fintech Group, which was listed on Indian stock exchanges in 2021, Paisabazaar is India's largest marketplace for consumer credit and a free credit score platform. With over 50 million trusting and satisfied consumers and 20 lakh enquiries from more than 1000 cities each month, Paisabazaar offers a wide choice of credit products in partnership with 60+ Banks, NBFCs, and NBFC fintechs. Recognized for its robust array of exclusive, first-in-market, and best-in-class digital products, Paisabazaar also runs India's largest credit awareness initiative by offering consumers their credit score from the credit bureaus for free. As an ISO (27001: 2013) certified organization, Paisabazaar is committed to protecting the best interests of its consumers.
Business loans are now being availed earlier by younger generations, with the average age dropping from 42 to 27, reflecting India's growing entrepreneurial spirit and the increasing availability of MSME lending products. Personal-finance tools and guidance from platforms like Paisabazaar are empowering a new generation of consumers to build healthy credit behaviors from an early age, with some starting as young as 22.
