Rising inflation in India, cheap loan options and changing lifestyle have pushed the Indian middle class into deep debt. According to the latest RBI data presented in Parliament, Home Loan, Personal Loan, Vehicle Loan and Credit Card Outstanding are continuously increasing rapidly. The total figure of housing loan has increased to more than Rs 39 lakh crore in FY 2023–24. The boom in real estate is considered to be the biggest reason for this growth. With this, the figure of Non-Housing Loans, which includes Personal Loan, Credit Card Outstanding, Education Loan and Vehicle Loan, has now crossed Rs 74 lakh crore. This situation shows that now EMI based lifestyle has become a part of common families in India. On the other hand, Net Household Savings of families has remained only 5.3 percent of GDP, which is the lowest level in the last 50 years. This decline is a matter of concern and raises questions about the economic condition of the middle class. The increasing use of facilities like Buy Now Pay Later among the youth can further increase the personal loan segment and total loans in the future. In this video we understand in detail how this economic change is affecting the financial security of the Indian middle class and what its impact may be in the coming years.
