Stop glamorising EMIs: Financial analyst explains why India wants financially resilient citizens, not debt-slaves
High -income groups also feel heat
According to Analyst Sujay U, who shares the findings in LinkedIn, higher income individuals do not get rid of. In many cases, it is aimed at paying credit reimbursement up to 45% of monthly revenues. These include home loans, car loans, credit card dues and now payment receiver programs.
In cities like Mumbai, only paying home loans can suffer almost half a salary in cities like Mumbai.
The study reveals that the household debt reached 42% of India’s GDP by the end of 2024. This affects people’s ability to create emergency savings or make long -term investments. National savings fell to 5.3% of GDP, the lowest level of 47 years.
“This number should ring all of us, Suj Sujay warned.
RBI flags increase in credit defaults
The Indian Reserve Bank has already emphasized an increase in defaults, especially in unsecured and microfinance loans and defaults. Even a small degradation in income such as anxiety, loss of work, illness or economic decline may lead to widespread reimbursement failures.
Lifestyle shift that exceeds crisis
Sujay drew attention to a deeper problem behind the trend: “The new EMI -oriented lifestyle means flashy tools and instant satisfaction, but it threatens debt -oriented and long -term financial health.” He added, “40% of the net income is the red flag.” The Minister said that financial literacy and budgeting are no longer optional, but that it has become basic life skills.
He ended his mission: “India’s growth miracle depends on financially flexible citizens, not debt slaves.
