Among GenZ customers aged 18 to 25, personal loans make up 40 per cent of borrowing out of the total loans disbursed to the cohort, with common use cases being travel or technology purchases, according to a report.

On the other hand, the share of personal loans is about 21 per cent for the millennial cohort aged between 26 and 38. For millennials, credit card spending is the most popular, with the payment instrument accounting for 30 per cent of the total loan disbursals for the cohort, according to a report by Redseer Strategy Consultants.

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Digital lending has increased from 1.8 per cent out of the total loans disbursed, in financial year 2022 (FY22) to 2.5 per cent in FY24. The report added that digital lending is expected to corner about 5 per cent of the total retail loans disbursed by FY28.

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