Only 28% of household loans for home purchase: RBI report

July 1, 2025

The latest Financial Stability Report reveals a mixed bag for Indian household debt, with consumption-driven loans outpacing asset-building loans. While most loans are held by prime borrowers, stress is building in the sub-prime category. Monetary easing is expected to alleviate debt servicing burdens, but the accumulation of debt among lower-rated borrowers warrants close monitoring to ensure financial stability.

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