The record
Written from the 1 report below. Nothing here is unsourced.
- A survey by debt resolution platform Expert Panel shows that India's middle class is increasingly dependent on debt, with about 60% of borrowers paying EMIs equal to or exceeding their monthly family income.
- Around 40% of respondents are taking new loans or using credit cards to repay old debt, which experts describe as a debt trap.
- The survey says borrowing is driven not just by lifestyle spending but also by medical emergencies (26%), children's education or weddings (22%), job loss or business slowdown (18%), and daily expenses (15%).
- RBI data cited in the report shows household debt has risen while household savings have fallen, prompting financial advisers to urge responsible borrowing and financial discipline.
What to watch next
- Whether household debt levels and falling savings highlighted by RBI data continue to worsen
- How many more borrowers fall behind, given 60% already making only minimum payments or defaulting and 20% receiving legal notices
- Whether policymakers or lenders respond to the growing reliance on new loans to repay old debt
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1 report
Indian-language1
All filed from India
Named India · Expert Panel · Reserve Bank of India
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