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India’s middle class is ‘borrowing to survive’: Marcellus Saurabh Mukherjea sounds the alarm

India’s middle class is ‘borrowing to survive’: Marcellus Saurabh Mukherjea sounds the alarm
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India’s center class is sinking into an enormous debt lure, and the numbers are getting worse. In a current podcast, Founder and Chief Funding Officer at Marcellus Funding Managers Saurabh Mukherjea flagged a troubling actuality — thousands and thousands of middle-class Indians have taken on a number of loans they might by no means be capable to repay. 

The indicators are in every single place: hovering private loans, rising bank card debt, and a rising variety of debtors struggling simply to fulfill day by day bills.

“The center class has borrowed hand over fist,” Mukherjea mentioned, citing RBI information. “During the last decade, bank card and retail loans have jumped from 4% to 11% of whole banking system credit score excellent. This isn’t simply borrowing for funding—that is borrowing to outlive.”

Mukherjea pointed to the RBI’s Monetary Stability Evaluate (FSR), which paints a dire image of middle-class debt in India:

45% of India’s debtors are subprime, that means they’ve poor creditworthiness and are at a excessive danger of default.
48% of the debt taken on by these subprime debtors is for consumption, not asset-building.

“This implies practically half of what these financially susceptible debtors owe is simply to maintain their day by day lives,” Mukherjea defined. “It’s not for investments, not for wealth creation—only for survival.”

5-10% of middle-class India is in a debt lure

Mukherjea’s evaluation means that between 5-10% of middle-class Indians have entered a debt spiral, the place they’ve taken on a number of loans they may probably by no means be capable to totally repay. He breaks it down utilizing information from RBI and credit score bureau reviews:

67% of middle-class Indians have taken private loans.
25% of all debtors maintain a bank card, a private mortgage, and not less than one different high-ticket mortgage.
45% of whole debtors are subprime, and half of their borrowing is only for day-to-day wants.

“Whenever you put these figures collectively, it’s clear that 5-10% of middle-class India is trapped in debt,” Mukherjea warned. “These are individuals with modest incomes who’ve amassed loans they merely can’t pay again.”

Mukherjea cautioned that this concern isn’t going away anytime quickly. “Every passing yr, this drawback will get greater, except it’s actively addressed,” he mentioned. “In case you are a middle-class Indian combating debt, search monetary counseling earlier than it spirals additional.”



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Tags: alarmborrowingClassindia middle-classIndiasmarcellusMiddlemiddle class debtmiddle class povertyMukherjeaSaurabhsaurabh mukherjeasoundssurvive
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