India’s next 100 million credit users won't fit the old mould. That's a growing opportunity

India’s lending landscape is undergoing a transformation. The next 100 million users entering the system will not just be salaried professionals from Tier 1 cities, in white collar jobs but predominantly individuals who are from low salary income category, blue collared workers and workforce that will be employed in miscellaneous non traditional roles across India.

As someone working closely with underserved segments, I believe we need to stop applying outdated models to new users. Instead, we must design for their realities, aspirations, and constraints. Doing so could unlock the next wave of financial inclusion and sustainable credit growth.

1. Income under Rs 30,000: A demand-led opportunity
Nearly 70% of new-to-credit users in India today earn less than Rs 30,000 per month (TransUnion CIBIL, 2023). Traditional risk models often classify them as high-risk, but in practice, they show high appetite for small-ticket loans (Rs 2,000–Rs 15,000), frequent repeat usage, and responsible repayments when repayment cycles match their income patterns.

We need to move beyond static income brackets as a proxy for risk. A factory worker with consistent cash flow but no formal payslip is typically excluded. But if lenders consider alternate data ; like mobile recharges, UPI spends, and rental payments ; a more accurate picture of their creditworthiness emerges. We’ve seen this approach succeed. What is needed is a broader adoption of cash-flow based underwriting using Account Aggregator infrastructure and low-documentation models. Regulators can accelerate this by enabling targeted sandbox pilots and removing friction from GST-less and digitally-native loan journeys.

2. Gig and informal workers: The new credit core
India’s gig economy is projected to reach 23.5 million workers by 2030 (NITI Aayog). Many among them , including delivery personnel, rideshare drivers, and on-demand freelancers , are actively seeking access to formal credit but remain excluded due to lack of documentation.

Their income is volatile, but their repayment behaviour is often better than expected ,especially when credit products are aligned to their cash cycles. In our experience, weekly or even daily repayment models built into gig platforms result in stronger repayment rates than traditional EMIs. In this case
Fintechs and platforms should co-create embedded credit products that flex with earnings. Regulatory support for platform-linked underwriting and repayment will help make these solutions scalable and sustainable.

3. Women: A growing, high-trust segment
Only 27% of formal credit users in India are women (CIBIL), but this number is steadily rising. Internal data and on-ground insights reveal that women ; especially in non-metro regions , tend to borrow more cautiously and repay more reliably. More importantly, their borrowing patterns are purpose-driven: for their children's education, family healthcare, or small business needs. Yet most credit products aren’t designed with them in mind , from the language in the app to documentation hurdles.

So we can design women-first credit journeys that are vernacular, simple, and focused on life outcomes. Embed financial literacy within the product experience. Collaborate with women-led NBFCs, SHGs, and digital inclusion programs to build distribution and trust.

4. Gen Z and young borrowers: Empowerment, not just credit
The average new-to-credit age in India is now 27 (CIBIL). This group is mobile-first, real-time oriented, and highly value-conscious. One hidden fee or poorly explained clause is enough to lose their trust. But when credit is bundled with features like cashback, micro-savings, or usage insights, they engage deeply. They don’t see credit as a loan , they see it as a tool for managing life better. We can move beyond the loan-as-a-product mindset. Build financial empowerment tools that combine credit with savings nudges, spending insights, and gamified repayment features. Gen Z rewards clarity, control, and utility , not just offers and limits.

5. Credit penetration: India lags, but can leap
India’s credit-to-GDP ratio is just 56%, compared to 155% in China and 216% in the US (World Bank, 2023). Less than 14% of adults have access to formal credit (RBI Financial Inclusion Index). Over 500 million Indians still remain unserved and under-served,

And yet, we’re better prepared than ever. With Aadhaar, UPI, Account Aggregator, and the JAM stack, we now have the infrastructure to include millions. What we need is to update the playbook to fit new users, not force them into old moulds. We need to encourage digital lenders to pilot alternate scoring models, support simplified KYC frameworks, and enable ecosystem innovation through progressive regulation. Financial institutions must build for Bharat’s realities, not just urban India’s credit profile.

The next 100 million credit users won’t accept complexity, exclusion, or outdated systems and nor should they. They are ready, willing, and digitally equipped. What they need are products built with empathy, flexibility, and purpose. We now stand at a defining moment: we can either retrofit legacy models to fit this emerging India, or we can reimagine credit to truly serve it. The tools are in place from UPI to Account Aggregator. What’s needed is intent and innovation. If we build with inclusion at the core, we won’t just expand access , we’ll unlock growth, trust, and long-term resilience for the entire financial ecosystem. The future of credit in India is not just inclusive, it can be transformative. Let’s shape it, boldly and together.

The writer is co-founder of FatakPay.