Young Indians are managing credit better in a rising interest environment

Mumbai, Sep 21

With credit awareness growing rapidly across salaried professionals, gig workers, and even first-time borrowers in smaller towns, we’re seeing a major shift in how users are taking control of their credit health. From tracking credit scores in real time to raising disputes, improving eligibility, and avoiding fraud—credit literacy is no longer just about loans, it's becoming a life skill.

Talking to Bizz Buzz, Jayant Upadhyay, COO, Olyv says, “There is a noticeable shift in how young Indians are handling credit today. Unlike previous generations, they are not just borrowing because they can; they are borrowing with intent. In an interest rate-sensitive environment, we are seeing more users proactively track their credit scores, compare offers, opt for shorter tenures, and even pre-close loans ahead of schedule.”

This marks a move from impulsive to informed credit behavior, driven largely by better access to digital tools and financial literacy.

Younger generations of Indians are showing a lot of financial sense in managing credit, especially during these high-interest-rate times. In contrast to their ancestors, borrowers today are more informed, technology-friendly, and tightly monitoring their repayment habits, knowing the long-term implications that reflect on their credit reports.

Pramod Kathuria, Founder & CEO, Easiloan says,

“Trends are being observed towards prudent borrowing habits—like opting for shorter tenor of loans, making part payments, and keeping a watchful eye on credit scores.”

This transformation is not only reflective of a rise in financial literacy but also reflective of a cultural shift wherein prudent credit management is becoming an integral part of the financial planning of India's youth.

EoM.