Why is Gen Z choosing loans over credit cards in India? Younger Indians are changing how they borrow, spend and enter the formal credit system, with phone loans, consumer finance and personal loans increasingly becoming their first experience with credit.In this episode of The Core Report Weekend Edition, Financial Journalist Govindraj Ethiraj speaks with Bhavesh Jain, MD & CEO, TransUnion CIBIL, about why Gen Z is choosing loans over credit cards, the rapid growth of consumer credit in India and what changing borrowing behaviour tells us about the Indian economy.India’s credit-active population has risen sharply over the past decade. But an equally important shift is taking place in how Indians borrow. Younger consumers are increasingly entering the credit market through phone financing and consumer durable loans rather than credit cards. UPI has also transformed how Indians make everyday payments, while personal loans and point-of-sale financing have given borrowers more alternatives to traditional cards.So are credit cards losing relevance with younger Indians?The conversation looks at why India’s credit card market has recently seen slower growth in cardholders, why existing users are accumulating multiple cards and why accessibility and convenience are reshaping consumer finance.Govindraj and Bhavesh also examine the extraordinary rise of gold loans, growing participation by women borrowers, rising formal credit in Uttar Pradesh, Bihar and Madhya Pradesh, and how India’s MSMEs are increasingly using working capital loans.They also discuss the bigger economic question behind India’s borrowing boom. Credit can fuel consumption, entrepreneurship and economic growth, but what happens when leverage among younger borrowers rises too quickly?Watch the full conversation for a data-driven look at Gen Z borrowing, credit cards in India, consumer loans, UPI, CIBIL scores, gold loans, MSME credit, financial inclusion and the changing Indian economy.Chapters(01:22) The Biggest Credit Trends of the Last Decade(02:13) Why 28% of Indians Are Now Credit Active(02:41) Credit Growth and India's Economic Expansion(03:22) The Shift From New-to-Credit to Existing Borrowers(04:27) Gen Z Is Reshaping India's Credit Market(05:07) Why Young Indians Finance Phones Before Homes(05:55) Business Owners Are Borrowing Personally(07:04) Gold Loans: India's Fastest Growing Credit Segment(08:11) Why Women Are Using Gold Loans for Business(08:38) Women, Gen Z & Credit-Mature Borrowers(09:30) Why Checking Your CIBIL Score Matters(10:36) Credit Growth Beyond India's Metro Cities(11:36) Uttar Pradesh Emerges as India's Credit Leader(13:39) Inside India's MSME Credit Story(14:14) Why 88% of MSME Credit Goes to Small Businesses(14:49) How MSMEs Improved Credit Quality After COVID(16:45) Why Working Capital Loans Are Dominating(17:31) Banks Are Rewarding Low-Risk Borrowers(17:56) India's Massive MSME Credit Opportunity(19:30) Retail Credit Health: Delinquencies & Debt(21:57) Has Credit Growth Become Too Aggressive?(24:10) The Rise of Digital Lending & AI Underwriting(26:59) Why UPI Is Transforming India's Credit Ecosystem(28:13) The Future of Consumer Lending in India(31:00) Can India Reach Developed-Market Credit Levels?(33:00) Building a Credit-Fit India(36:14) Advice for Every MSME OwnerWhy is Gen Z choosing loans over credit cards in India? Govindraj Ethiraj speaks with Bhavesh Jain of TransUnion CIBIL about Gen Z borrowing, consumer credit in India, personal loans, UPI, digital lending, CIBIL scores and changing borrowing behaviour. Watch The Core Report for insights on credit cards in India, financial inclusion and the Indian economy.#GenZ #CreditCardsIndia #ConsumerCredit #DigitalLending #TheCoreReport #TheCore
