Kashmir’s Gen-X: Loans and Lives
Youth these days are not taking loans to build homes or attain higher education, they are turning into borrowers for buying I-phones, travelling and enjoying their lives.
The emerging trend is all about making reels and putting status updates. There have been many instances about youngsters taking loans to travel to other states or countries to watch concerts, sports events and shows.
The loans availed by these youngsters are available at high interest rates without any security or guarantees. Since these are unsecured, lenders compensate for the risk by charging exorbitant rates and penalties for delays.
Many youngsters, who are first-time borrowers are unaware of compound interest, processing fees, late payment charges and the long-term impact on their credit scores.
What starts as a small loan of Rs 50,000 or Rs 1 lakh snowballs into a crippling burden within months.
The social media has turned lifestyles into public performances. Reels showcasing luxury phones, airport selfies, concerts, cafés and branded outfits have become markers of success and social validation. The life has become more about a show off.
The elements like building a future or to achieve something big are disappearing fast. Today the youngsters in Kashmir are living in an environment which is more about maintaining a superficial status.
Many youngsters are borrowing not out of need, but to avoid feeling left behind in a hyper-competitive digital world where appearances matter more than financial prudence.
Unstable jobs and incomes are making things more difficult for the youth who are caught in the quagmire of paying multiple EMIs.
The fragile employment landscape has further aggravated the situation. With limited private sector opportunities and a slow pace of industrial growth, a large section of youth depends on irregular incomes, temporary jobs or family support.
In such circumstances, it becomes very difficult for them to pay the EMIs. The job disruptions or losses, any health emergency or any other family responsibility push borrowers to edge. Once trapped, they often take fresh loans to repay older ones, creating a vicious cycle of borrowing.
Families are beginning to feel the impact of this trend. Parents who once took pride in their children’s education and modest upbringing are now anxious about rising financial indiscipline. In many households, young earners spend a significant portion of their income on EMIs, contributing little to family savings. This not only strains relationships but also undermines the traditional culture of financial responsibility that Kashmir has long valued.
When the borrowers fail to repay loans, their mental health becomes another silent casualty. Constant pressure to meet EMI deadlines, fear of recovery calls and the stigma of debt are taking a toll on young minds. The financial insecurities and inability to have stable incomes has been linked to anxiety, depression and a sense of hopelessness. In extreme cases, aggressive recovery practices by some digital lenders have led to public shaming, harassment and emotional distress, pushing borrowers into deeper crisis.
Youth need to understand that they have to act responsibly. Life is not about borrowed lifestyles showcased online. It comes from financial independence, self-control and the ability to plan for the future. Kashmir’s young generation has talent, resilience and ambition. What it needs now is a shift in mindset—from living on EMIs to investing in dreams that do not come with crushing interest rates.
If the current trend continues unchecked, easy loans may well rob an entire generation of financial stability. But with awareness, discipline and collective effort, the debt trap can still be avoided, ensuring that credit becomes a means of empowerment rather than a burden for Kashmir’s youth.
Understanding interest rates, credit scores, budgeting and the difference between assets and liabilities is no longer optional in today’s economy. Community organisations, religious institutions and civil society groups can also play a role by encouraging discussions on responsible spending and ethical borrowing.
Banks and government institutions should make it easier for youth to access affordable credit for productive purposes such as startups, vocational training and education, rather than allowing them to take loans for spending on luxuries.
Parents and elders have to play a proactive role to make the youngsters understand that loans need to be taken to build assets and attain knowledge, and not to make their lives miserable which keep on crumbling under the weight of EMIs.
The writer is columnist and board member of International Centre for Peace Studies ICPS, New Delhi
