Millennials and credit scores

Credit-Conscious Millennials Leading the Way in Rising Credit Score Trends in India

India has more than 400 million millennials—those born between 1982 to 2000— accounting for a third of India’s population and representing 46% of its workforce.

TransUnion CIBIL’s study reported that millennials are one of the most credit-conscious consumer segments in the country. The study revealed that the number of millennials getting a loan or new credit card grew by 58% compared to a minimal 14% between 2016 and 2018.

State-wise statistics on the credit-conscious behaviour of millennials:

  • 51%of self-monitoring millennials come from Maharashtra, Karnataka, Tamil Nadu, Uttar Pradesh and Delhi collectively.
  • Millennials from Gujarat rank highest in credit-consciousness with an average score of 747, followed by Haryana at 743, Rajasthan at 742, and Tamil Nadu at 736. Delhi is at the bottom of the list, with an average CIBIL Score of 734

Spending Trends of Millennials

Thanks to digitisation, loans are instantly available because of the ability to underwrite credit in real-time. This means easy access to credit to this tech-savvy generation, making them the biggest digital borrowers in the country. Many new-age financial products with alternate underwriting models are introduced to cater to this credit hungry population.

Sujata Ahlawat, vice president and head of direct to consumer interactive, TransUnion Cibil, says, “If you see the kind of loans that the millennials are opting for, the top three being two-wheelers, consumer durables and credit cards, I don’t see that posing a risk to the system. In fact, we see a larger set of credit aware consumers coming into the ecosystem.”


As the income and spending of these Millennials rise over the next decade, so will their need for financing, creating a demand for retail credit products.

Progressive lenders are already introducing products to stake a claim on this generation of borrowers. Indian millennials are making an economic mark and those who are ready to meet their needs and offer them more stand to benefit.


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