The RBI raised its rate to 5.5%. It expects inflation of 5.8%.
India's first rate hike in 3 years 8 months takes the repo rate to 5.50%. The RBI's own forecast puts inflation at 5.8% for October 2026 to June 2027.
CapitalVia Research Desk ·
Data Story · 29 Sep 2026
Indian households now owe almost half of GDP.
45.9% of GDP
Household financial liabilities were ₹158.5 lakh crore in March 2026 — up from 36.4% of GDP in June 2022. The ratio has not fallen in a single quarter since.
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Fifteen quarters, one direction
Household financial liabilities as % of GDP, June 2022 → March 2026
36.4
39.0
41.7
43.1
45.9
Jun-22Mar-23Mar-24Mar-25Mar-26
Bars start at zero. Quarterly readings: 36.4, 37.1, 38.0, 39.0, 39.3, 40.2, 41.0, 41.7, 41.7, 42.2, 42.6, 43.1, 43.2, 44.1, 44.9, 45.9. Only one quarter (Jun-24) was flat.
Debt is growing faster than what we own
Growth in outstanding amounts, June 2022 → March 2026
Loans from NBFCs (personal, vehicle, consumer & gold loans)+144%
All household debt+78%
Household financial assets+49%
Bank deposits+42%
NBFC loans to households: ₹8.7 lakh crore → ₹21.2 lakh crore, a 2.4× rise in under four years.
₹21.5 lakh cr
Debt added in the 12 months to March 2026 (+15.7%)
+8.0%
Growth in household financial assets over the same 12 months
₹32 / ₹100
Debt per ₹100 of financial assets, up from ₹27 in June 2022
The reframe
For every ₹100 households added to their financial assets since mid-2022, they took on ₹43 of new debt.
Assets rose ₹161 lakh crore; liabilities rose ₹69 lakh crore. Debt-to-GDP: 36.4% → 45.9%.
Why it matters
Salaried
Your EMI is the story. The fastest-growing piece is NBFC credit — the personal, consumer-durable and gold loans that sit outside bank statements. A rule of thumb lenders themselves use: total EMIs under 35–40% of take-home pay leaves room to keep saving.
Founders
Consumer demand has a credit tailwind. Part of the spending your customers do is borrowed money. Pricing, credit terms and BNPL partnerships deserve a stress test for a slower-credit year.
Leaders
Household leverage is now a macro variable. The RBI tracks this ratio every quarter, and it shapes how freely retail credit flows. Read the FSR chapter on household debt alongside this table.
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