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From Dreams to Reality: How India is funding its aspirations through smart credit
7th Edition of the ‘How India Borrows’ Study explores the evolving dynamics of aspiration and access to credit. It highlights shifts in borrowing behavior, the impact of digital platforms on decision-making, and the growing importance of trust and transparency within India’s lending ecosystem.
‘How India Borrows 2025’ is crafted to provide a clear perspective on how smart credit is defined and applied in everyday life. It explores the role of purposeful borrowing, digital access, and financial literacy in transforming aspirations into achievements.
The study offers in-depth insights into borrowing behavior, digital adoption, loan decision drivers, financial aspirations, and attitudes—revealing how India’s emerging middle class is leveraging smart credit as a tool to fund aspirations and turn dreams into reality.
The 'How India Borrows 7.0' study confirms a powerful shift: India’s credit culture is moving from borrowing for survival to borrowing for success. The lower middle class is now highly strategic, using credit as a vital bridge to entrepreneurship, homeownership, and education. Gen Z, Millennials, women, and smaller cities are driving this digital lending revolution, prioritizing speed, simplicity, and personalization. We see them as Prudent Planners and Confident Builders. At Home Credit India, we are committed to providing a transparent financial journey that fuels personal progress and national growth, making every borrower’s #ZindagiHit.
Ashish Tiwari
Chief Marketing Officer
Home Credit India
How India Borrows 2025
Borrowed to purchase phones and home appliances.
Borrowed to start or expand businesses.
Borrowed for home renovation/construction.
Borrowers prefer digital channels.
Borrowers choose point-of-sale or bank channels.
Borrowers trust embedded finance, primarily valuing its speed and convenience.
Borrowers prefer EMI cards, attributing this preference to trust, quick approvals, and transparency.
Borrowers consider EMI affordability as a key driver for choosing credit.
Borrowers rely on recommendations from friends and family.
Borrowers check credit score eligibility.
Borrowers are influenced by online reviews.
Borrowers believe careful credit use can build a strong financial foundation.
Borrowers feel credit improves their financial independence.
Borrowers say that credit has helped them achieve life goals that once seemed impossible.
Borrowers see loans as a stepping-stone to major life achievements.
Borrowers want complete clarity on how their data is used.
Borrowers worry companies collect too much data.
Borrowers understand how lenders actually use their data.
Borrowers know the data-privacy rules in lending.
Our exploration into the borrowing behavior of India's aspiring class reveals a cohort driven by extraordinary discipline, profound ambition, and a clear, strategic vision for their future. This is not a story of simply needing credit, but of intelligently leveraging capital to collapse the timeline between aspiration and achievement. These individuals are defined by their dual nature: meticulous prudence in managing finances coupled with an unyielding conviction in the power of credit to build their destiny.
The collective aspirations of this segment—to be business owners, homeowners, and financial custodians for the next generation—are the true engine of India's growth. By prioritizing products that honor their prudence, enhance financial sovereignty, and dismantle the fear of the unknown, financial institutions can move from simply supplying capital to becoming true partners in charting a more inclusive, confident, and prosperous course for the nation's rising class.
Please write to us at media@homecredit.co.in for any relevant queries.
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