Gadget Addicts: Millennial and Gen Z devour cellphones paid for by personal loans

Between 2020 and 2024, the percentage of loans used to finance the purchase of smartphones and household appliances increased from 1% to 37%.

The newest smartphones and other devices are in high demand among India's Gen Z and millennial population, who find it easier and easier to obtain them even when they are beyond their means, due to personal loans.

As a result, demand for personal loans to purchase high-end cellphones and consumer gadgets is surging in India. According to "How India Borrows," an annual study on consumer borrowing gadget trends produced by Home Credit India, a fintech company, the percentage of such credit (among personal loans) has climbed dramatically, from 1 percent in 2020 to 37 percent in 2024.

The study, which involved polling over 2,500 borrowers in the 18–55 age range who made an average of Rs 31,000 per month, was carried out across 17 Indian cities.

Additionally, borrowing for building and home improvement has increased significantly, from 9% in 2022 to 15% in 2024.

This demonstrates the desire of customers to upgrade their houses, which is driven by a positive economic outlook and an increasing aspiration to become homeowners. The Chief Marketing Officer of Home Credit India, Ashish Tiwari, noted that this development suggests that people are now giving priority to long-term asset investments.

The study also showed that demand for education loans remained stable, with a 4% share from 2022 to 2024, highlighting the continued importance of children's education. In the meantime, the percentage of loans taken out to cover wedding costs increased gradually, from 3% in 2021 to 5% in 2024.

According to Tiwari, the percentage of loans used for healthcare crises dropped significantly from 7% in 2020 to 3% in 2024. He attributes this decline to better financial preparation and more insurance coverage.

According to the survey, the percentage of loans for automobiles and two-wheelers climbed sixfold between 2020 and 2024, from 1 to 6 percent, indicating the rising demand from consumers for more mobility and personal transportation.