Millennial lives and the new-age debt trap
- With the economy slowing and savings rate falling, India’s young are bingeing on risky app-based credit
- A loan default appears on one’s credit report for seven years. Ultimately, young people who ruin their credit histories will not be able to access credit for more meaningful things
Bijay Mahapatra, 19, took his first loan from a fintech firm in 2017. It was a small-ticket loan of ₹500 and he had to repay ₹550 the next month. It was curiosity about a new app as well as the concept of credit itself. The idea of money out of nowhere which can be paid back later would be alluring for any teenager.
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