lvtogel

https://blac.edu.pl/profile/nevaflood/ · at December 25, 2025

Sarthak Ahuja, an investment banker and author, sounded the alarm in a LinkedIn post. "For the first time in the history of India, the No. 1 reason to take a personal loan is not a medical emergency, home renovation or to buy an asset... but travel," he wrote.

The data paints a sharp contrast with earlier generations, who typically borrowed for essentials or long-term assets. Now, Ahuja says, Gen Z is increasingly using credit to fund what he calls "status-driven consumption."

That includes financing flights to attend expensive concerts and buying iPhones on EMIs, with 70% of iPhone sales now happening via installment payments. In a striking data point, 39% of Gen Z reportedly borrowed money for necessities like rent, groceries, and utilities in 2024.

Ahuja attributes this shift to two primary forces. First, sky-high housing prices have crushed homeownership dreams for many young Indians.

"A young Indian thinks, how can I ever afford to pay a Rs 2 lakh EMI for 20 years to buy a simple house," he noted. In response, they choose to spend on immediate gratification, luxury goods, travel, and social media-fueled experiences.

Second, fintech innovation has removed much of the friction from borrowing. With zero-cost EMIs and Buy Now Pay Later (BNPL) schemes embedded directly into checkout pages, loans under Rs 50,000 are often approved in under a minute. This has turbocharged unsecured lending for small-ticket items.

The trend mirrors and contrasts the consumer trajectory of Gen Z in China. Between 2015 and 2019, Chinese youth indulged in similarly aggressive borrowing for status purchases. But post-COVID economic stress has triggered a reversal. "That generation has shifted from revenge spending to revenge saving," Ahuja wrote.

In China, gold, specifically "gold beans" that weigh just one gram, has become a new status symbol among young savers, signaling a pivot toward financial prudence and intellectual capital. "While Indians are thinking I should borrow today because I will earn tomorrow, Chinese are thinking let me save today because I may not have a job tomorrow," Ahuja said.

The shift in India has also redrawn the map for consumer businesses. Direct-to-consumer (D2C) brands are now targeting Gen Z more aggressively, banking on their willingness to borrow for Instagram-worthy lifestyles.

Ahuja's takeaway? "If you're getting jealous of someone's holiday or iPhone on social media, don't be, know that it could be on borrowed money."

lvtogel

Thursday, December 25, 2025

India's Gen Z Borrows To Spend, Chinese Gen Z Saves To Survive

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