While access to credit is expanding rapidly among first time and young borrowers, repayment challenges persist in the initial phase of borrowing, the report said. (Credit: Pexels)
The role of younger borrowers in shaping India’s retail credit landscape has expanded, even as borrowers in their prime earning years continue to form the backbone of lenders’ portfolios, according to a report by credit information bureau CRIF High Mark. The findings show that individuals aged 30 and below are leading new credit entry and the growth of unsecured lending, while borrowers in the 31-40 age group account for the largest share of outstanding loan value and balances.
The report points to a steady improvement in overall asset quality over the past year, with delinquency levels easing across age groups. However, early-stage stress remains more visible among younger borrowers, particularly those with unsecured loans. This trend suggests that while access to credit is expanding rapidly among first time and young borrowers, repayment challenges persist in the initial phase of borrowing, the report said.
Among younger cohorts, borrowers aged 26-30 recorded the fastest growth in numbers over the past year, with borrower growth rising at a double-digit pace, it said. This segment also saw a sharp expansion in portfolio outstanding, reflecting both higher loan uptake and increasing ticket sizes. Meanwhile, borrowers aged 25 and below continued to dominate the new to credit category, accounting for more than one third of all first-time borrowers and the highest share of newly opened loan accounts, CRIF High Mark said.
Despite the surge in younger borrowers, the overall loan book is concentrated in the mid-age segment. Borrowers aged 31-40 account for the largest share of total borrowers, active loan accounts and portfolio outstanding. As of November 2025, this group represented close to one third of active loans and outstanding balances. This concentration reflects peak earning years, greater income stability and higher borrowing capacity, making it particularly attractive for lenders, it said.
CRIF High Mark said credit quality trends improved across all age groups between November 2024 and November 2025. Nevertheless, borrowers aged 30 and below continue to show higher early-stage delinquencies as compared to older cohorts. Stress is most evident in unsecured products such as credit cards and personal loans, where repayment obligations are not backed by collateral. Early signs of stress are also visible among younger borrowers in term working capital loans and auto loans, indicating that repayment pressure is not limited to consumption driven credit alone, it said.
Unsecured lending continues to dominate overall retail credit, with consumer durable loans, credit cards and personal loans accounting for a large share of new loan originations. This segment is led primarily by borrowers aged 30 and below, followed by those in the 31-40 age group. In contrast, secured products such as auto loans and home loans show a narrower and more mature customer base. These loans are largely concentrated among borrowers aged 31-40 and 41-50, in line with typical life stage decisions related to home ownership and vehicle purchases, it said.
The report also highlights differences in lending strategies across different institutions. Private sector banks and non-banking financial companies are aggressively targeting borrowers below 40 years of age for unsecured products. While non-banking lenders tend to focus more on borrowers aged 30 and below, private banks are more active in the 31-40 segment. Public sector banks, on the other hand, continue to prioritise relatively mature borrowers aged 31-50, with a strong emphasis on secured lending, it said.
Geographically, Uttar Pradesh emerged as one of the states with the largest base of borrowers aged 30 and below in terms of active loan accounts, followed by Maharashtra. Across the leading states, borrowers aged 40 and below together account for over 60 per cent of active loans, underscoring the central role of younger consumers in driving credit growth, the report said.
Overall, the CRIF High Mark report suggests that India’s credit expansion remains firmly youth driven, led by rising aspirations and improved access to finance. It also flagged the need for lenders to closely monitor early-stage stress among younger borrowers, particularly in unsecured lending, to ensure that growth remains sustainable over the medium term.
Curated by Dr. Elena Rodriguez
