India’s per capita debt of particular person borrower rises considerably over final two years: RBI Report
The per capita debt of particular person debtors in India has witnessed a pointy improve over the previous two years, rising from ₹3.9 lakh in March 2023 to ₹4.8 lakh in March 2025, in line with the monetary stability report launched by the Reserve Financial institution of India (RBI).
The report highlighted that this rise in debt ranges has been primarily pushed by higher-rated debtors.
RBI said, “At an combination stage, the per capita debt of particular person debtors has grown from ₹3.9 lakh in March 2023 to ₹4.8 lakh in March 2025″.
At an combination stage, the expansion in family debt has been supported by regular will increase in housing loans, which fashioned 29.0 per cent of the entire family debt as of March 2025.
Whereas the expansion in housing loans has remained secure general, a deeper have a look at the information exhibits that incremental development is being led by present debtors.
These debtors are availing extra loans, and their share has elevated to greater than one-third of the entire housing loans sanctioned in March 2025.
The report additionally flagged a regarding pattern of accelerating loan-to-value (LTV) ratios. The share of borrower accounts with LTV ratios better than 70 per cent is on the rise.
Moreover, delinquency ranges stay elevated amongst lower-rated and extra closely leveraged debtors, although these ranges have declined significantly in comparison with the interval through the COVID-19 pandemic.
India’s family debt has been on an upward trajectory in recent times, primarily on account of elevated borrowing from the monetary sector.
Nonetheless, as of end-December 2024, family debt stood at 41.9 per cent of GDP at present market costs, which remains to be comparatively low when put next with different rising market economies (EMEs).
Among the many broad classes of family debt, non-housing retail loans have taken the lead. These loans, that are primarily used for consumption functions, accounted for 54.9 per cent of complete family debt as of March 2025.
In addition they represented 25.7 per cent of disposable revenue as of March 2024. The share of non-housing retail loans, like auto loans and loans for white items has been rising steadily through the years, and their development has outpaced that of housing loans in addition to loans taken for agriculture and enterprise functions.
The Central financial institution report highlighted the significance of monitoring family debt tendencies, significantly the shifts in borrower profiles and lending patterns, to make sure long-term monetary stability.
