New India’s economic growth is driven by self-reliance and economic empowerment. As millions of young Indians enter the workforce, moving away from traditional employment and embracing diverse careers, many with entrepreneurial aspirations, promoting upskilling remains a focus area.
Economic policies also emphasise youth-driven growth, with skill development as the cornerstone of “Atma Nirbhar Bharat.” Simplifying tax structures and streamlining compliance mechanisms are some initiatives the government has been working on. There have also been efforts to increase transparency in the financial system. Financial institutions have worked on creating financial awareness and empowerment. This evolving landscape presents opportunities for lenders and bankers to promote and support the financial behaviour of this generation.
Financial inclusion is shaping first-time borrowers
These initiatives help young, rural, and previously unbanked segments get into the fold of formal financial structures. Today, financial inclusion and financial education go hand in hand. The objective is not to get a person to open their first bank account, but to truly get them to transact and utilise the various facilities that the banking system offers.
In this journey, there is equal participation of different financial institutions to cater to different segments of the economy. Public sector banks, through their branch networks, reach the most remote parts of the nation. The cooperative bank network is working in the community space, driving financial inclusion through cohesive community engagement. Private banks cater to the digitally driven urban population, while cater to the swift, frictionless digital needs of the youth. Small finance banks have supported micro-entrepreneurs and self-help groups to be included in the movement.
Multiple institutions are driving access and awareness
The World Bank’s Global Findex 2025 noted that 89 per cent of Indian adults now have bank accounts, a significant leap from 2011, when only about 35% had access to formal banking. This surge is driven by initiatives like the Pradhan Mantri Jan Dhan Yojana (), resulting in active account usage steadily rising; by 2021, 96% of households had at least one member with a bank account. This population is informed and aware of their options, making them financially independent in the true sense.
Thus, as more individuals enter formal finance, whether to meet personal or business needs, there is a strong need for access to credit. The foundation of a strong credit profile is to maintain a disciplined, prudent credit conduct from the very first loan. and financial institutions have partnered to provide this education to first-time borrowers, along with access to credit.
A lot of effort and initiative has gone into educating these customers to empower them with knowledge and tools to understand and monitor their credit behaviour and build a healthy credit history. Today’s youth have been empowered with knowledge, education, and information to plan their long-term credit journey.
Disclaimer: The information provided in this article is for informational purposes only and does not constitute financial, legal, or professional advice. While every effort has been made to ensure accuracy, readers should verify details independently and consult relevant professionals before making financial decisions. The views expressed are based on current industry trends and regulatory frameworks, which may change over time. Neither the author nor the publisher is responsible for any decisions based on this content.
Sachin Seth, Regional Managing Director, CRIF India & South Asia