Overview

• Latest RBI data show average per capita debt rose from ₹3.9 lakh in March 2023 to ₹4.8 lakh by March 2025.
• Nonproductive EMIs now consume 25.7% of ordinary citizens’ disposable income.
• Short-term consumer loans account for over 55% of new lending as families turn to credit cards and gadget purchases to cope with inflation.
• Unsecured lending has surpassed 25% of total bank credit, prompting stability concerns.
• India’s external debt reached $736.3 billion by March 2025, up 10% year-on-year, fueling opposition claims of economic mismanagement.