Younger Borrowers Drive New Credit Growth, Mid-Age Segment Anchors Loan Portfolios
A new report from credit information bureau CRIF High Mark highlights a significant shift in India's retail credit landscape. Younger borrowers are now at the forefront of new credit entry and unsecured lending expansion. Meanwhile, individuals in their prime earning years continue to form the stable core of lenders' portfolios.
Youth Lead New Credit Entry
Borrowers aged 30 and below are driving most of the new credit growth in India. The report shows this age group leads in new loan account openings and unsecured lending activities. Specifically, individuals aged 26-30 recorded the fastest growth in borrower numbers over the past year. Their growth rate reached double-digit percentages.
This younger segment also saw a sharp expansion in portfolio outstanding amounts. This reflects both higher loan uptake and increasing average loan sizes. Borrowers aged 25 and below continue to dominate the new-to-credit category. They account for more than one third of all first-time borrowers. They also hold the highest share of newly opened loan accounts.
Mid-Age Borrowers Anchor Loan Portfolios
Despite the surge in younger borrowers, the overall loan book remains concentrated in the mid-age segment. Borrowers aged 31-40 account for the largest share of total borrowers. They also hold the most active loan accounts and portfolio outstanding amounts.
As of November 2025, this group represented close to one third of active loans and outstanding balances. This concentration reflects their peak earning years, greater income stability, and higher borrowing capacity. These factors make this segment particularly attractive for lenders seeking stable returns.
Unsecured Lending Dominates Retail Credit
Unsecured lending continues to dominate overall retail credit in India. Consumer durable loans, credit cards, and personal loans account for a large share of new loan originations. This segment is led primarily by borrowers aged 30 and below. Those in the 31-40 age group follow closely behind.
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. This pattern aligns with typical life stage decisions related to home ownership and vehicle purchases.
Repayment Challenges and Credit Quality
The report points to a steady improvement in overall asset quality over the past year. Delinquency levels have eased across all age groups. However, early-stage stress remains more visible among younger borrowers. This is particularly true for those with unsecured loans.
Borrowers aged 30 and below continue to show higher early-stage delinquencies compared to older cohorts. Stress is most evident in unsecured products like credit cards and personal loans. These 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. This indicates that repayment pressure is not limited to consumption-driven credit alone.
Geographical Distribution of Borrowers
Geographically, Uttar Pradesh emerged as one of the states with the largest base of borrowers aged 30 and below. This measurement is in terms of active loan accounts. Maharashtra follows closely behind.
Across leading states, borrowers aged 40 and below together account for over 60 percent of active loans. This underscores the central role of younger consumers in driving credit growth across India.
Lending Strategies Across Institutions
The report highlights differences in lending strategies across different financial institutions. Private sector banks and non-banking financial companies are aggressively targeting borrowers below 40 years of age for unsecured products.
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 continue to prioritize relatively mature borrowers aged 31-50. They maintain a strong emphasis on secured lending products.
Sustainable Growth Considerations
Overall, the CRIF High Mark report suggests India's credit expansion remains firmly youth-driven. Rising aspirations and improved access to finance fuel this growth. The report also flags the need for lenders to closely monitor early-stage stress among younger borrowers.
Particular attention should be paid to unsecured lending segments. This monitoring will help ensure that growth remains sustainable over the medium term. As credit access expands rapidly among first-time and young borrowers, managing repayment challenges becomes increasingly important for financial stability.
