Miniaturisation & democratisation of credit and de-stigmatisation of debt is building a perfect storm: Ritesh Srivastva

The growth of personal loans lent by fintechs is due to miniaturization of credit, with millennials and Gen Z taking smaller loans of Rs 25,000. However, such loans can create debt traps for those who take buy now pay later (BNPL) and travel now pay later loans for lifestyle needs. Ritesh Srivastva of FREED says there has been a cultural and behavioural shift with people being more open to new forms of credit for aspirational purchases.