A growing trend among India’s Generation Z shows that many young adults are turning to loans and easy credit not for traditional needs like emergencies or homes, but for travel, iPhones and status-driven spending, reflecting a shift in financial behaviour and social priorities. In 2025, nearly 27 % of personal loans in India were taken out to fund vacations and travel dreams, overtaking classic reasons like medical costs and home repairs — a cultural first in the country’s borrowing patterns.

This appetite for credit-funded experiences is amplified by fintech innovations that make personal loans and zero-cost EMIs quick and accessible, especially for small-ticket lifestyle items such as smartphone purchases and concert tickets. In fact, a significant share of young buyers now purchase premium devices like iPhones on installment plans, blending consumption with instant gratification.

Experts suggest this rise in status-driven borrowing is shaped by social media influences, aspirational lifestyles and a perception that immediate experiences matter more than long-term financial goals. While this trend underscores youthful optimism and a desire to explore and enjoy life, it also raises questions about financial literacy, debt management and the long-term impact of prioritising credit-fuelled spending over savings.