Only 6% of adults aged 24 are credit active, two-wheelers on top of the list

Credit active Generation Z consumers in India are 9 million, or 6% of those eligible to apply for credit but they are becoming increasingly active in the loan market with as much as 21% in the group taking loans for two-wheelers.
The percentage of the Indian population that was classified as Gen Z ranging from age 0-24 as of CY 2019 was 44% representing more than 609 million.

A study by TransUnion Cibil, a credit information company said, “The percentage of Indians that was classified in Gen Z and eligible to apply for credit, was 11% almost 147 million people”. The popularity of two-wheeler loans amongst Gen Z consumers in India is growing. For Gen Z, credit card participation is increasing but remains less compared to the broader national average.

As per the study, there is a huge divide in how Gen Z approaches credit in rising markets versus established credit markets. While in most settled markets more than half of Gen Z are credit active, the percentages drop steeply for EMs.