Debt burden increased on middle and upper income group, RBI report revealed

of Reserve Bank of India (RBI) Financial Stability Report (December 2024) According to, the debt burden on the middle and upper income group people in the country is increasing. The share of outstanding personal loans in the annual income groups of Rs 5-15 lakh and above Rs 15 lakh has increased significantly over the last three years. By September 2024, the share of personal loans in these income groups will be 11% and 9% Has increased.

Personal Loan: Who is most affected?

1. Income group less than Rs 5 lakh:

• This category is struggling the most with the burden of unsecured personal loans.
• On this class in March 2023 52% unsecured loan Was, which will reduce by September 2024 42% Remained.
• However, till September 2024, there was no improvement in the share of this category.

2. 5-15 Lakh Income Group:

• Share of personal loan in this income group in the last three years increased from 26% to 37% It’s done.
• This increase is considered most worrying.

3. Income group above Rs 15 lakh:

• Share of personal loan in this high income group increased from 16% to 25% It’s done.
• Despite high income, this category has seen an increase in loan demand and outstanding amount.

Improvement in the condition of those who do not have available income

• In outstanding loans of people who do not have regular income 20% There has been a decrease.
• Banks have taken extra caution in giving loans to such people, due to which their indebtedness declined.

Banks’ strategy and caution

• Banks have started exercising more caution in matters of giving unsecured personal loans.
• People with regular income were given priority, while people with irregular income were given small and short term loans.
• Following RBI instructions, banks gave priority to recovery of small loans.

Income group-wise share in personal loans (September 2021-2024)

Future of Personal Loan

Experts believe that the increasing indebtedness in the middle and upper income groups reflects the changing economic conditions of India. However, banks’ vigilance and income-based loan distribution strategy can help improve this situation.