Youth Lending Crisis: Under-30s at Higher Risk of Loan Defaults

Young borrowers, particularly those under 30, are more likely to default on loans compared to older age groups. Reports indicate a higher tendency to default on unsecured loans. Geographically, Uttar Pradesh and Maharashtra house the majority of such borrowers. This trend raises concerns for private banks and NBFCs focusing on this demographic.

Younger borrowers, particularly those under the age of 30, are facing a heightened risk of defaulting on their loans, according to a recent report by Crif High Mark.

The report highlights a trend of higher delinquency levels among this age group, with a noticeable increase in defaults on unsecured personal loans, credit cards, and even auto loans.

Geographically, the states of Uttar Pradesh and Maharashtra hold the largest share of these young borrowers, raising concerns for financial institutions, especially private banks and NBFCs that focus on this demographic segment.

(With inputs from agencies.)