A Study on Trends in Consumer Credit Usage in India: A Secondary Data Analysis of EMI Financing

The rapid growth of consumer credit has significantly changed household spending habits in India. Equated Monthly Instalment (EMI) financing has become one of the main ways people access goods and services. This study analyzes secondary data on trends in consumer credit usage in India, focusing on the growth, adoption, and impact of EMI financing across different demographics and consumption categories.Using data from reliable Secondary sources like the Reserve Bank of India (RBI), National Sample survey (NSS), industry reports, and financial institutions, the paper looks at trends in consumer credit growth, sector distribution, and shifts in borrower behaviour and shifts in borrower behaviour over the past decade.The analysis shows a clear move from traditional borrowing to EMI based financing. This shift is driven by higher disposable incomes, more digital lending platforms, the rise of non-bank financial companies, and greater use of consumer goods, smartphones, cars, and lifestyle products. The study also examined how Fintech innovations, buy-now-pay-later (BNPL) models, and zero cost EMI schemes impact consumer spending and credit access especially for young and first-time borrowers.