How India Borrows 2023

How India Borrows Survey 2023

Tracking consumer behaviour for 5th year in a row

How India Borrows 2023
How India Borrows 2023


For the past five years, Home Credit India has been conducting a comprehensive study to understand the evolving borrowing habits of lower middle-class consumers in India. This survey, spanning over 17 major cities and encompassing over 1800 borrowers, delves deep into the financial lives of individuals aged 18 to 55 years across diverse income groups and professions.

The study focuses on active loan users, individuals who have recently obtained and are currently repaying loans. Key highlights of the insights from the study are:

How India Borrows 2023

Increased Digital Adoption

The survey highlights a significant rise in the adoption of digital platforms for loan applications and repayments. This trend is particularly prominent among young borrowers in urban areas.

Data Privacy Concerns & Financial Literacy Gaps

While acknowledging the convenience of digital platforms, borrowers’ express concerns regarding data privacy and security. The survey identifies significant gaps in financial literacy among lower middle-class consumers.

Increased Aspirational Borrowing

Consumer durables followed by business and housing were the major reasons why India borrowed in 2023.

How India Borrows Survey 2023

Key Highlights

  • 48%

    borrowers shop online, this trend is more prominent among Gen Z.

  • 44%

    borrowers use browser based internet banking services.

  • 54%

    borrowers use app based banking services.

  • 58%

    borrowers are worried about how their personal data is being used by lending apps.

  • 18%

    NPS: customer satisfaction among the highest in the country

  • 70%

    feel the need of transparent communication on usage of personal data.

  • 39%

    borrowers would like a reputed organization to educate them about financial tasks online.

  • 44%

    borrowers took loan for buying consumer durables such as smartphones and home appliances.

  • 19%

    of borrowing was business related borrowing, which is the next biggest driver for taking loans in India.

  • ~1%

    of people borrowed for running their households, which is lowest since 2020.

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