The middle-class debt trap is becoming a pressing issue in India. Saurabh Mukherjee from Marcellus Investment Managers highlights that 5–10% of middle-class households are ensnared in a debt cycle, primarily due to easy credit access and societal pressures. RBI data indicates a significant rise in unsecured loans, with credit card and retail loans increasing from 4% to 11% of total banking credit over the past decade.
Why this matters: Middle-class debt trap This trend underscores the financial vulnerability of the middle class and the need for prudent financial planning.
Source: Business Today
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