NewsStocksUnder-30 borrowers exhibit higher loan default rates across retail products: Crif High Mark reportUnder-30 borrowers exhibit higher loan default rates across retail products: Crif High Mark report
Crif High Mark's report reveals that borrowers under 30 years exhibit higher loan default rates, with delinquency levels of 2.60% for under-25 borrowers and 2.70% for 26-30 age group as of November 2025. These younger borrowers show particular vulnerability in unsecured products like personal loans and credit cards, as well as vehicle financing. Private banks and NBFCs focus more on the under-30 segment, while Uttar Pradesh and Maharashtra account for 35% of active loans to this demographic.
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Borrowers under 30 years of age demonstrate significantly higher loan default rates compared to older age groups, according to a comprehensive analysis by credit information company Crif High Mark. The report highlights concerning delinquency patterns among younger borrowers across various retail lending products, with particular vulnerability observed in unsecured lending categories.
Age-wise Delinquency Analysis
The credit information company's analysis reveals distinct patterns in repayment performance across different age brackets. Younger borrowers consistently exhibit elevated default rates compared to their older counterparts across the retail lending spectrum.
| Age Group | Delinquency Rate | Observation Period |
|---|---|---|
| Under 25 years | 2.60% | November 2025 |
| 26-30 years | 2.70% | November 2025 |
| Other age groups | Significantly lower levels | November 2025 |
The data indicates that the 26-30 years age bracket records the highest delinquency rate at 2.70%, while borrowers under 25 years show a marginally lower but still elevated rate of 2.60%. All other age groups demonstrate substantially better repayment performance.
Product-wise Default Patterns
Younger borrowers show particular susceptibility to defaults across multiple lending categories. The report identifies specific product segments where under-30 borrowers face greater repayment challenges:
- Unsecured products: Personal loans and credit cards show higher default rates
- Vehicle financing: Auto loans and two-wheeler loans exhibit elevated delinquency levels
- Overall retail products: Consistent pattern of higher defaults across all categories
Lender Focus and Geographic Distribution
The lending landscape shows distinct institutional preferences in targeting younger borrowers. Private banks and non-banking financial companies (NBFCs) demonstrate greater focus on the under-30 segment, while public sector banks maintain a more diversified approach across all age groups.
From a geographical perspective, the concentration of young borrowers shows clear regional patterns:
| Region | Contribution to Active Loans |
|---|---|
| Uttar Pradesh & Maharashtra | 35% (combined) |
| Karnataka | Second highest concentration |
| Other states | Remaining distribution |
Uttar Pradesh and Maharashtra together account for 35% of active loans to borrowers under 30 years, representing the highest concentration of such lending activity. Karnataka follows as the next significant market for young borrower lending.
Market Implications
The findings underscore the elevated credit risk associated with younger borrowers across retail lending products. The consistent pattern of higher delinquency rates among under-30 borrowers suggests the need for enhanced risk assessment and monitoring mechanisms. The geographic concentration in specific states also indicates regional factors that may influence repayment behavior among younger demographics.
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