Home, personal loans drive household debt to 4% of GNDI, highest in 7 yrs

Growth in credit card outstanding has been the fastest compared to other personal loan segments

The financial liabilities of households have gone up to at least a seven-year high of 4 per cent of their disposable income, according to the Reserve Bank of India (RBI) Annual Report for 2017-18 (FY18). This is significant, as it comes after a consistent reduction from 3.2 per cent of the gross national disposable income (GNDI) in 2011-12 to 2.4 per cent of GNDI in 2016-17 (FY17).

While the reason for its fall to 2.4 per cent of GNDI in FY17 was demonetisation, the growing demand for housing and unsecured personal loans led to a rise in liabilities in FY18,