Record household debt: Loans outpace deposits for 3rd year in a row

Debt higher than many BRICS peers, at lower per capita GDP

In the past three financial years, Indian households took more money from banks as loans than they invested as deposits.

Money deposited by households was equivalent to 4.5 per cent of gross domestic product (GDP) in the nine months ending December 2023, shows data from a 19th March Motilal Oswal Financial Services ‘EcoScope’ report.

While bank loans were equivalent to 4.9 per cent of GDP.

The report, authored by research analysts Nikhil Gupta and Tanisha Ladha, also said that it wasn’t a recent trend.

Deposits grew at a slower pace than the loans in the first nine months FY23 and