Summary:

Gen Z and millennials are driving development in India's digital lending, reshaping retail credit. Redseer expects that digital loans will account for 5% of total retail loans by FY28, up from 1.8% in FY22 and approximately 2.5% in FY24, with an annual growth rate of 40%.

In FY24, digital loans accounted for US$ 742.16 billion in retail credit disbursements, with Gen Z borrowing between US$ 41.90-47.88 billion and millennials borrowing between US$ 299.26-335.17 billion. They prefer digital solutions for more efficient operations and faster approvals. Mr. Jasbir S Juneja of Redseer Strategy Consultants noted their significant impact on India's retail lending sector, with Gen Z favoring personal loans (40%) for urgent expenses, while millennials adopt a broader financial strategy (21% personal loans).

Source: IBEF 

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