ANALYSIS OF FINANCIAL ATTITUDES: SENTIMENT AND PERCEPTIONS OF EMI AND BNPL SERVICES IN INDIA'S STUDENT POPULATION

Abstract

The exponential growth of Buy Now, Pay Later (BNPL) and Equated Monthly Instalment (EMI) services in India has fundamentally transformed consumer credit behavior, particularly among students who represent a vulnerable yet underexplored demographic. This study presents a comprehensive analysis of financial attitudes, sentiments, and perceptions toward EMI and BNPL services within India's student population. With India's BNPL market projected to reach $100 billion by 2025 and 41% of first-time borrowers being Gen Z, understanding student perceptions becomes critical for addressing potential debt traps and financial stress. The research employs a mixed-methods approach combining sentiment analysis using Natural Language Processing (NLP) techniques and structured survey methodology to capture both qualitative emotional responses and quantitative behavioral patterns. The study investigates awareness levels regarding terms and conditions, psychological drivers of adoption including perceived affordability and peer influence, socio-economic factors affecting usage patterns, and the relationship between easy credit access and financial stress among students. By analyzing data collected from undergraduate and postgraduate students across diverse Indian institutions, this research identifies dominant sentiment patterns (positive, negative, neutral) and examines the gap between perceived convenience and actual financial burden. The findings provide valuable insights for policymakers, educational institutions, fintech companies, and students themselves, contributing to the development of targeted financial literacy interventions and responsible lending practices in India's rapidly evolving digital finance ecosystem.