Planning to take loan for first time? What should young borrowers check before taking their first loan? Expert explains — SkimNews
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- TransUnion CIBIL’s March 2026 report found that borrowers below 35 accounted for 58% of first-time borrowers in the December 2025 quarter, while personal-loan originations in that segment rose 20% year on year.
- Long-term goals such as buying a home, pursuing higher education, obtaining immediate medical treatment or starting a business can benefit from borrowing, unlike financing a lifestyle.
- Lifestyle borrowing for a new phone or vacation can create a debt trap when existing EMIs already stretch monthly income, Vikas Chaudhary warned.
- Total EMIs around ₹15,000 or lower can offer breathing room for someone earning ₹50,000 a month, depending on essential expenses and savings, according to Vikas Chaudhary.
- Personal-loan platforms have made the approval process “instant” with a click, so borrowers need to look beyond seamless approval and the headline interest rate.
- Repayment planning should assess repayment capacity, previous borrowing behavior and the loan’s purpose, because delayed or missed payments can raise borrowing costs.
- Loan agreements should be reviewed carefully because interest rates, charges, eligibility criteria and repayment terms vary by lender and may change; borrowers in doubt are advised to consult a certified financial adviser.
Why it matters: The material question for first-time borrowers under 35 is whether rising originations remain affordable: they made up 58% of first-time borrowers, while personal-loan originations in that segment rose 20% year on year. For a ₹50,000 monthly earner, the suggested ₹15,000-or-lower EMI range offers a concrete affordability check before an unsustainable loan creates years of monthly pressure.
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