RBI Report
Household debt up at 45.5% of GDP but borrower profiles improve
This story was originally published at 18:14 IST on 30 June 2026
Register to read our real-time news.Informist, Tuesday, Jun. 30, 2026
Borrower profiles improving
--RBI report: Household debt rose to 45.5% of GDP end-Sept vs 41.3% end-FY25
NEW DELHI – Indian household sector's debt continued to rise in 2025-26 (Apr-Mar), reaching 45.5% of GDP at the end of September from 41.3% at the end of FY25. Despite the rise in household borrowings, borrower profiles in India continued to improve, the Reserve Bank of India said Tuesday. At 45.5% of GDP, household debt in India was higher than emerging economies Chile, Brazil, and South Africa, but lower than China, Thailand, and Malaysia.
"The share of higher-rated borrowers (prime and above) has increased both in terms of outstanding amounts and number of borrowers," the RBI said in the Financial Stability Report. "This improvement is evident across both consumption and productive loans, with a growing share of prime and above borrowers in total outstanding credit."
The rise in household debt was driven primarily by non-housing retail loans, the RBI said. The share of non-housing retail loans has increased steadily over time--they made up for 58.4% of the total borrowings as of March--consistently outpacing housing loans as well as agriculture and business loans, the RBI said.
"In terms of broad categories, viz., loans taken for consumption purposes, asset creation, and productive purposes, those availed for consumption purposes account for nearly half of total household borrowings," the RBI said in the half-yearly report. "Consumption-related loans remained the primary driver of household borrowings, followed by loans for productive purposes, whereas borrowing for asset creation expanded at a relatively slower pace." End
Reported by Shubham Rana
Edited by Akul Nishant Akhoury
For users of real-time market data terminals, Informist news is available exclusively on the NSE Cogencis WorkStation.
Cogencis news is now Informist news. This follows the acquisition of Cogencis Information Services Ltd. by NSE Data & Analytics Ltd., a 100% subsidiary of the National Stock Exchange of India Ltd. As a part of the transaction, the news department of Cogencis has been sold to Informist Media Pvt. Ltd.
Informist Media Tel +91 (11) 4220-1000
Send comments to feedback@informistmedia.com
© Informist Media Pvt. Ltd. 2026. All rights reserved.
To read more please subscribe
Share this Story:
