Millenials are turning credit healthy, borrowing with confidence, says report

The report showed that for customers who were born in 1970, the average age of the first loan taken was 38. Those born in 1985, the average age was 27.

In the last two years,  customers from outside the top 10 cities are becoming more credit aware, the report added.

There has been a shift with 38 percent of customers who have taken their credit report being self-employed; 78 percent of them are MSMEs, the report said.

A big segment, at 23 percent, are customers who do not have credit score and are ‘New to Credit’. Most of them are first-time earners and professionals in their 20s who have never taken any credit product in the past, the report added.

Over the next 5 years, this rise in credit awareness, coupled with the continuing smartphone and internet boom, would enable a significant impact on the penetration of formal credit products in India.

"As a fintech, we believe we are uniquely placed to innovate to truly make a difference in the lives of our customers, through meaningful and relevant innovations. Over the last 5 years, we have seen millions of our consumers suffer due to poor credit score. Our credit awareness initiative is aimed at making India credit aware and financially healthy, through good credit behaviour," said Naveen Kukreja, CEO and Co-founder, Paisabazaar.com.