From the monetary stability perspective, greater than 50 p.c of loans are to the prime and above rated debtors. Solely 22 % of debtors are from the sub-prime class the place stress is increase. On the optimistic facet although financial easing by the central financial institution is predicted to decrease the debt servicing burden.
At an combination degree, the per capita debt of particular person debtors has grown from ?3.9 lakh in March 2023 to ?4.8 lakh in March 2025. The rise in per capita debt has been primarily led by the higher-rated debtors, it mentioned.
“Amongst broad classes of family debt, non-housing retail loans, that are largely used for consumption functions, shaped 54.9% of complete family debt as of March 2025 and 25.7 % of disposable revenue as of March 2024” famous the FSR. “ Furthermore, the share of those loans has been rising constantly through the years, and their progress has outpaced that of each housing loans and agriculture and enterprise loans”
Housing loans, then again, shaped 29% of family debt and their progress has been regular. Nonetheless disaggregated knowledge exhibits that current debtors are availing extra loans moderately than new debtors coming into the borrowing -fold. degree, the incremental progress has been primarily pushed by the prevailing debtors who’re availing further loans, and their share has elevated to greater than a 3rd of the housing loans sanctioned in March 2025.
Considerably the share of borrower accounts with mortgage to worth larger than 70% is rising. However on the similar time the report famous that delinquency ranges are larger for lower-rated and extra leveraged debtors. Nonetheless, these have declined significantly from their ranges throughout COVID-19, it mentioned. The share of better-rated clients (prime and above) amongst complete debtors is rising, each by way of the excellent quantity and variety of debtors. “That is vital from a debt serviceability and monetary stability perspective, because it signifies that family steadiness sheets at an combination degree are resilient” the report mentioned.The debt servicing prices are set to fall with financial easing and decrease lending charges. “Total, the dangers to the Indian monetary system from lending to households stay contained with an easing financial coverage cycle prone to scale back debt service pressures on debtors going ahead” the report mentioned.” Nonetheless, the pattern in family debt accumulation, particularly amongst lower-rated debtors, requires shut monitoring.”