“Paise ka chakkar, babu bhaiya, paise ka chakkar” (It’s all about money, my friend. It’s all about money).
If you’ve watched Hera Pheri, you’ve probably heard this iconic dialogue countless times. Funny as it sounds, it reflects a reality many Indians face every day.
Money makes the world go round. But increasingly, borrowed money is helping people buy homes, cars, smartphones, fund weddings and achieve life goals sooner than they otherwise could.
I often find myself wondering: Is it , the digital-first generation that seems comfortable with credit cards and instant loans? Is it millennials, juggling home loans, children’s education and rising living costs? Or is it older borrowers who have spent decades building wealth and now use credit differently?
To find out, I spoke to industry experts, and what emerged was a fascinating picture of how different generations are using credit.
If India’s lending market had a star borrower, it would undoubtedly be the .
People in their late 20s, 30s and early 40s account for the largest share of personal loans, home loans and vehicle loans across the country.
According to Adhil Shetty, CEO of BankBazaar, millennials are at a stage where major life goals arrive all at once.
“A powerful shift toward long-term security is driving millennials to lead India’s retail credit landscape,” says Shetty.
He adds, “Between January and September 2025, fresh borrowing was fairly similar across generations, with millennials at 55.2%, Gen Z at 54.7% and older borrowers at 53.9%. Millennials dominate every major loan category. They hold 269 of 507 credit card accounts, and 238 of 462 car or bike loans.”
As careers stabilise and incomes grow, many millennials are using credit to buy homes, start families and achieve major life goals earlier.
Vivek Singh, Vice President, Risk Products, believes mindset also plays a major role.
“Millennials treat EMIs as a standard financing tool, not a last resort,” he says.
Unlike previous generations that often preferred saving first and spending later, millennials appear more comfortable using loans to bring future purchases into the present.
Perhaps nowhere is this more visible than in the .
Property prices in most major cities have surged over the past decade. For many millennials, waiting years to accumulate enough savings is simply not practical.
Shetty notes that millennials hold 191 out of 425 home loans and 370 out of 662 running personal loans tracked in BankBazaar’s analysis.
“This massive borrowing volume is driven directly by rising urban costs, housing prices and escalating lifestyle aspirations,” he says.
Singh points out that the burden is also heavier than it was for earlier generations.
“Where earlier generations typically carried one active loan, urban salaried millennials today average three or more,” he explains.
For many households, multiple EMIs have become part of normal financial life.
If millennials dominate loan values, Gen Z is rapidly becoming the most interesting group for lenders.
Despite being early in their careers and earning relatively modest incomes, young consumers are already taking personal loans and using credit cards at a remarkable pace.
Shetty says Gen Z has embraced credit much earlier than previous generations.
“The youngest workforce entrants are quickly adopting credit as a disciplined tool to build their futures,” he says.
What surprises experts is that repayment behaviour remains relatively healthy. According to BankBazaar’s data, Gen Z records the lowest repayment stress among all age groups.
Singh believes this generation sees credit differently.
“Gen Z is not waiting to graduate into credit. They are entering the formal credit system early through small-ticket loans and treating credit as a payment and liquidity tool from the start,” he says.
For many young consumers, credit is no longer reserved for emergencies. It has become a routine financial tool for managing spending and liquidity.
A decade ago, getting a loan often meant visiting branches, submitting paperwork and waiting days for approval.
Today, things look very different.
Loan applications can be completed in minutes through smartphones, and credit assessments increasingly rely on digital footprints alongside traditional credit scores.
“The expansion of credit to younger borrowers is being shaped by a dual combination of digital access and proven credit discipline,” says Shetty.
Singh adds that digital lenders have changed the game by offering credit exactly when consumers need it.
“Travel financing embedded at checkout, lifestyle loans at the point of service — credit now fits the moment, not the branch visit,” he says.
The result is faster, easier access to borrowing than ever before.
While younger generations borrow to build assets, older borrowers often use credit to unlock value from assets they already own.
This is why gold loans and loans against investments are particularly popular among older consumers.
BankBazaar’s data shows and loans against mutual funds and fixed deposits.
According to Shetty, this reflects a desire to preserve wealth while meeting short-term cash needs.
“Using existing assets as collateral allows them to access low-cost credit without selling their underlying holdings,” he says.
Singh highlights another advantage.
“Secured loans are cheaper because the lender’s risk is lower,” he explains.
Rather than taking expensive unsecured loans, older borrowers often use their accumulated savings more efficiently.
Looking ahead, experts expect Gen Z to become the biggest driver of loan growth.
As incomes rise and careers mature, today’s young borrowers are likely to take larger loans for homes, vehicles and wealth creation.
“Gen Z is poised to drive retail loan growth over the next decade,” says Shetty.
However, both experts caution that easier access to credit brings new risks.
Singh warns that many young borrowers are currently building credit histories using small consumption loans.
“A strong bureau score built on that foundation may not say much about how the same borrower will behave on a home loan,” he says.
In other words, lenders may need new ways to assess long-term repayment behaviour.
The answer appears to be a bit of both.
Shetty believes credit is increasingly being used as a tool for economic progress rather than merely covering daily expenses.
“A fundamental shift is underway in how Indians view debt, turning credit from a last resort into a tactical tool for progress,” he says.
Yet Singh believes the inclusion story remains incomplete, particularly outside urban India, where access to formal credit remains limited.
What is clear, however, is that India’s relationship with debt is changing. Millennials are using loans to build assets, Gen Z is embracing credit earlier than ever before, and older borrowers are leveraging wealth they have already created.
And perhaps that is why this dialogue still resonates.
“Paise ka chakkar, babu bhaiya…”
Only today, the story is not just about money. It is about aspiration, opportunity and the growing role of credit in shaping how Indians live, spend and build their futures.