Household Debt
Perils of the 'push' loan phenomenon and rural India's rising debt burden
Rural households are increasingly depending on borrowed money to meet everyday consumption needs, a practice that is not sustainable in the long run
 "Perils of the 'push' loan phenomenon and rural India's rising debt burden")
Fewer Indian employees debt-free since 2022, most loans of up to Rs 25 lakh
BankBazaar survey says younger women show greater aspiration to own a home
 "Fewer Indian employees debt-free since 2022, most loans of up to Rs 25 lakh")
The shift: Households turn net borrowers from banks, says BCG report
The report highlighted that unsecured lending as a proportion of GDP in India is as high as it is in the United States
 "The shift: Households turn net borrowers from banks, says BCG report")
87% of Indians believe increased financial uncertainty in 5 years: Report
Currently, family expenses, with an uncertainty score of 78, are the biggest concern among Indians, followed by health and life-related worries
 "87% of Indians believe increased financial uncertainty in 5 years: Report")
Risky borrowing: India's household debt has likely surged to all-time high
India's rising household debt, particularly the increase in non-housing loans, is a cause for concern for the central bank.
 "Risky borrowing: India's household debt has likely surged to all-time high")
Household debt registered new high by Q3FY24, savings plummeted: Report
A report by Motilal Oswal said that households' net savings plummeted to a six-year low level of 18.4 per cent of GDP
 "Household debt registered new high by Q3FY24, savings plummeted: Report")
'Household spending may grow 6.7% in 2024 on mild inflation, income surge'
The report also notes that the current situation index (CSI) and future expectations index (FEI) are above their pre-pandemic levels (at 89.4 and 118.0 respectively)
 "'Household spending may grow 6.7% in 2024 on mild inflation, income surge'")
Household savings fall to decades low, borrowing rises: RBI data
Annual financial liabilities of households increases by 5.8% of GDP
 "Household savings fall to decades low, borrowing rises: RBI data")
Indian households outdo emerging market peers on cutting debt levels
Only one among BRIC countries to have cut leverage to levels to pre-pandemic levels
 "Indian households outdo emerging market peers on cutting debt levels")
'Every Indian has debt of Rs 1.25 lakh': KTR reacts to FM's Telangana jibe
His tweet was apparently in response to Union Finance Minister Nirmala Sitharaman's statement that every child born in Telangana carries a debt of Rs.1.25 lakh
 "'Every Indian has debt of Rs 1.25 lakh': KTR reacts to FM's Telangana jibe")
Forget Squid Game, here are some strategies to get out of debt in real life
The most-expensive-debt first approach is cost-effective, while debt snowball has been found to be the most successful
 "Forget Squid Game, here are some strategies to get out of debt in real life")
Even before pandemic, debts had soared by 84% in rural & 42% in urban India
The pandemic-led economic crisis has exacerbated the rising indebtedness among India's poor households, and could push more families into a debt trap
 "Even before pandemic, debts had soared by 84% in rural & 42% in urban India")
Household debt may have declined to 34% in Q1 FY22, says SBI report
The household debt as a percentage of gross domestic product (GDP) may have declined to 34 per cent in the first quarter of 2021-22, according to an estimate by the State Bank of India's research report Ecowrap. The COVID-19 pandemic has resulted in a spike in household debt to the GDP rate. As per the report, it rose sharply to 37.3 per cent in 2020-21 from 32.5 per cent in 2019-20. We estimate that household debt as a percentage of GDP has declined to 34 per cent in Q1 FY22 with the commensurate rise in GDP in the first quarter, though it has increased in absolute terms, the research report released on Wednesday showed. In absolute numbers, the household debt has increased to Rs 75 lakh crore in the first quarter of FY22 from Rs 73.59 lakh crore in FY21, it said. It said the recently released India Debt & Investment Survey (AIDIS) report for 2018 showed an increase in the average amount of debt among rural as well as urban households between 2012 and 2018. The average amount of
 "Household debt may have declined to 34% in Q1 FY22, says SBI report")
Household debt jumps to 37.3% of GDP in fiscal 2021, says report
Household debt has been steadily increasing ever since the GST implementation in July 2017
 "Household debt jumps to 37.3% of GDP in fiscal 2021, says report")
Sharp increase in household debt stress in FY21 is worrying: SBI report
Household debt has sharply increased to 37.3 per cent of GDP in FY21 from 32.5 per cent of GDP in FY20
 "Sharp increase in household debt stress in FY21 is worrying: SBI report")
India's public finances and private sector at taper tantrum risk
India is the third most indebted country among major emerging markets, behind Argentina and Brazil.
 "India's public finances and private sector at taper tantrum risk")
Covid-19: At Rs 43.5 trn by March, Indian households' debt at record high
Indian households had debts worth nearly Rs 43.5 trillion at the end of March this year, up from Rs 6.6 trillion at the end of March 2008 and Rs 19.3 trillion five years ago at the end of FY15
 "Covid-19: At Rs 43.5 trn by March, Indian households' debt at record high")
Is there another financial crisis brewing in household debt?
The financing of households is fine if incomes keep growing. If not, high debt levels could begin to bite, and we will have a double whammy, writes T N Ninan
