Embedded finance, EMI cards fuel India’s new age of smart borrowing

India’s lower-middle class is moving from borrowing for survival toward borrowing for advancement, signalling a decisive cultural shift in credit behaviour, according to the seventh edition of Home Credit India’s annual How India Borrows (HIB) study.

- STATESMAN NEWS SERVICE

Representing nearly two-thirds ofthe population, this segment is increasingly using credit to improve living standards, invest in entrepreneurial ventures, and buildlong-term financial security. The study identifies a growing cohort of strategic borrowers who view credit as an enabler of upward mobility rather than a last-resort safety net.

The 2025 report is anchored around four themes, credit as a driver of aspiration, the rise of digital lending, evolving borrower decision-making, and the emergence of embedded finance. Together, they show how “smart credit” is reshaping financial behaviour across age groups, genders, and regions.