Average age of first-time borrowers drops by 21 years: Paisabazaar Report

From gold loans and home loans to personal loans, the average age of borrowers has fallen across generations. According to a consumer insight study by Paisabazaar, there has been a 21-year drop in the average age of customers availing their first credit product, with access to credit becoming easier. This underlines the fact that consumers are now starting their credit journeys at a significantly younger age with each passing generation.

Paisabazaar analysed the credit patterns of over 10 million consumers for this study. The data showed that the average age at which those born in the 1960s availed their first credit product was 47, whereas those born in the 1990s began their credit journey around 25 to 28 years—clearly indicating both an easing of access and a shift in consumer mindset.

For gold loans—traditionally used as a financial safety net of last resort—the age of first usage has steadily declined: from 52 years for those born in the 1960s to 27 years for those born in the 1990s. Home loans, which were earlier accessed later in life, are also being availed earlier, with the average age falling from 41 years (for those born in the 1970s) to 28 years (for those born in the 1990s).

Radhika Binani, Chief Product Officer, Paisabazaar, said, "Today’s young consumers are more aware, aspirational, and digitally savvy. They are not only accessing credit earlier but also using it more confidently and diversely—whether to meet life goals or lifestyle and aspirational needs. Our analysis also indicates the evolution of the ecosystem, which has made access to credit easier over time. At Paisabazaar, we remain committed to empowering consumers with the right tools and guidance to build healthy credit behaviours from the start."

The analysis also highlights a generational shift not just in the age of entry, but in the types of products used to begin the credit journey. While older generations typically started with secured loans like home or auto loans, those born in the 1990s generally entered the credit ecosystem via unsecured products like credit cards, personal loans, or consumer durable loans—often by the age of 25 to 28.

For consumers born in the 1960s, home loans were typically the first credit product, availed at an average age of 47. For those born in the 1970s and 1980s, auto loans were more common first products, taken at an average age of 39 and 31, respectively.

In contrast, 1990s-born consumers had diversified entry points—credit cards, personal loans, consumer durable loans, and auto loans—all of which were commonly availed between the ages of 25 and 26.