India’s rising wave of credit-driven consumption, especially among Gen Z and millennials, is reshaping the way the country spends. From flashy new iPhones to lavish foreign holidays, a significant portion of this young demographic is turning to EMIs, Buy Now Pay Later (BNPL), and embedded finance options to fund aspirational purchases. According to recent reports, a staggering 70% of iPhones in india are purchased on EMIs, and 40% of all smartphones follow the same route. wallet PLATFORM' target='_blank' title='digital-Latest Updates, Photos, Videos are a click away, CLICK NOW'>digital credit tools are breaking down the barriers of affordability, making high-end products and experiences more accessible than ever—but not without consequences.

Experts warn that while EMIs offer convenience, they are also leading to a worrying credit burden. The trend is no longer limited to occasional big purchases; it has seeped into everyday financial behavior. More than 33% of salaried individuals’ monthly income now goes toward paying EMIs, as per a joint study by Perfios and PwC India. As fintech innovations grow, so does consumer appetite for easy credit. 43% prefer EMI cards, while 64% favor embedded finance options found on e-commerce and travel sites. These quick-access credit systems, often bundled with no-cost EMI tags, are becoming the default mode of spending—not saving.

The dark side of this convenience is becoming increasingly visible in India’s macroeconomic data. Credit card debt alone has crossed ₹33,886 crore, signaling a surge in unsecured borrowing. Financial advisors and economists are sounding alarms over this trend, noting that rising EMI dependence could lead to a financial crisis at the household level, especially if interest rates spike or job markets falter. What started as a gateway to luxury is now a slippery slope into debt cycles. As Gen Z embraces the "have now, pay later" mindset, it remains to be seen whether this financial culture will sustain prosperity—or deepen inequality and financial stress in the long run.
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SIBY JEYYA

05/08/2025 09:05 AM