A whopping 53 per cent of Indians took their first personal loan before reaching the age of 30, and 22 per cent of the personal loan consumers were under the age of 25. Similarly, 57 per cent took their first credit card before turning 30 and 24 per cent availed it before turning 25, says a new study.

The study by Paisabazaar analysed the credit data of 3.7 crore consumers across India.

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“Indians in their late 20s manage three credit accounts with the average age of the first salaried credit card user being 28 years, while that for a self-employed one, it is 30 years,” it said.

According to the study, the average age when Indian consumers take their first credit card is 28 years, while the average age for the first personal loan and the consumer durable loan is 29 years.

The life goal-based and high ticket size – home loans – are consumed at a later stage, usually at an average age of 33 years.

“A whopping 53 per cent of Indians took their first personal loan before reaching the age of 30, and  22 per cent of the personal loan consumers were under the age of 25. Similarly, 57 per cent took their first credit card before turning 30, and 24 per cent availed of a credit card even before the age of 25.

“Over half of the consumers took their first personal loan or credit card before they turned 30, whereas only 31 per cent of them took their first home loan before 30, and, expectedly, a small ratio of only 8 per cent took it before 25,” the study revealed.

“Moreover, 45 per cent of first-time home loan borrowers were between the ages of 30 and 40,” it said.

The study highlighted that there has been a sharp rise in younger consumers checking credit scores.

In 2019, 14 per cent of individuals who checked their credit scores on the Paisabazaar platform were under the age of 30, while 52 per cent were in the 30-40 age group.

By 2023, a noteworthy 38 per cent of Paisabazaar’s new credit score consumers were under the age of 30, including 17 per cent who were under 25, and less than 30 per cent were in the 30-40 age group.

The study found that 64 per cent acquired their first credit product before they turned 30, and among these, a notable 37 per cent were under 25.

Only 23 per cent of consumers accessed credit for the first time between 30 and 40 years of age, while another 13 per cent used credit after turning 40.

Over 20 per cent of consumers took their first personal loan and credit card before turning 25, the study said.

Credit cards are the most popular choice for consumers under the age of 25, with the majority opting for two credit cards. Women are more inclined towards personal loans, and men prefer credit cards, the data revealed.

Analysing the city-wise credit health, the study found Bengaluru to be the most credit-healthy city. This was followed by Ahmedabad, Mumbai, Pune, Chennai, and Delhi. Hyderabad, Kolkata, Surat, and Coimbatore were the other places in India’s 10 most credit-healthy cities.

The survey added that one in five personal loans taken is used for holiday-related expenses.