
Personal loans constitute 40 percent of borrowing among Gen Z customers aged 18 to 25. This significant portion of borrowing is primarily utilized for travel or technology purchases, according to a recent report.
Personal Loans and Credit Card Spending Among Millennials
In comparison, personal loans represent about 21 percent of borrowing for the millennial cohort, which includes individuals aged between 26 and 38. Millennials favor credit card spending, which accounts for 30 percent of the total loan disbursals within this group, as reported by Redseer Strategy Consultants.
Growth of Digital Lending
Digital lending has experienced growth, rising from 1.8 percent in financial year 2022 (FY22) to 2.5 percent in FY24. The report predicts that digital lending will capture approximately 5 percent of the total retail loans disbursed by FY28.