How Gen Z Is Redefining Personal Finance in India

India’s personal finance landscape is undergoing a dramatic transformation. According to a Deloitte report, nearly 65% of India’s population is under 35, and Gen Z alone makes up more than 27% of the workforce. This digitally native cohort is not only earning earlier but also reshaping how money is borrowed, spent, and managed. With fintech investments in India crossing $5.65 billion in 2022 In subsequent years, the fintech sector experienced a notable decline in funding, falling from $2.8 billion in 2023 and dropping further to $1.9 billion in 2024. In just the first half of 2025, investments reached $889 million, banking is no longer just about physical branches or legacy credit scores, it is becoming cognitive, instant, and deeply reimagined for the next generation of borrowers.

For Gen Z, finance is as much about accessibility as it is about speed. They’ve grown up in an era of digital-first solutions, and their financial decisions reflect this mindset. Platforms offering 100% digital loans, seamless onboarding, and instant disbursal resonate strongly. The appeal lies in simplicity: applying through a smartphone, completing basic KYC, and receiving funds in a matter of minutes. This redefinition of financial access is powering a culture where money management is no longer intimidating but empowering.

One of the biggest shifts is inclusivity. Many Gen Zers are first-time borrowers with no prior credit history. Traditional banks that insist on a high CIBIL score often leave this segment underserved. In contrast, new-age lending platforms don’t make CIBIL a barrier. By enabling loan-on-Aadhaar with minimal documentation, they create opportunities for individuals who otherwise may never access formal credit. This democratization ensures that finance works for everyone, not just those with a legacy of borrowing.

Flexibility is another hallmark of this new era. Gen Z doesn’t see finance as rigid; they want credit that adapts to their lifestyle. Whether it’s repayment tenures ranging from 90 days to a year or the option to clear dues through multiple digital channels, flexibility provides them the confidence to borrow responsibly. It turns short-term loans into tools for growth, whether covering education fees, medical needs, or funding a passion project.

The demand for transparency and trust is equally important. Gen Z has little patience for hidden charges or outdated customer service. Platforms that are upfront about processing fees, interest rates, and repayment structures, while offering 24×7 digital support, earn their loyalty. It’s no surprise that financial services are now being shaped to deliver clarity, not confusion.

Social media adds another dimension. Financial choices today are validated not just by advisors but by peers and online reviews. A lender known for being “inclusive” or “a blessing for people with low or no credit” quickly gains traction among young borrowers. In many ways, finance has become conversational and community-driven, spreading faster through an Instagram story than a bank brochure.

In summary, Gen Z is pushing India toward a personal finance model that is digital, inclusive, instant, and transparent. They expect finance to move at the speed of their lives. By removing the CIBIL barrier, offering instant digital loans, and ensuring flexible repayment with minimal paperwork, modern platforms are not just serving Gen Z, they’re defining the future of inclusive finance in India.

BY: Bharat Karan Soni, Co-founder, Ram Fincorp