India's middle class borrows heavily as loan repayments strain incomes
India's middle-class is borrowing more than ever, with easy loans making it simple to buy things like new phones and gadgets.
But stories like 25-year-old Navjot Singh, who spends nearly half his salary paying off loans for items like an iPhone, a PlayStation, a television set, a wine and spirits course, and a trip home, show how quickly debt can add up.
As interest rates rise, paying back these loans is getting tougher, and missing payments could become more common.
India consumer debt at 46% GDP
Household borrowing jumped 36% in the year through March, pushing consumer debt to a record 46% of India's GDP.
While that's still less than in many Western countries, Indian families are feeling the squeeze.
With the Reserve Bank of India raising interest rates to 5.5% and risks like job losses or falling gold prices (a popular loan collateral), experts warn that this spending boom could turn risky fast, especially for young people juggling multiple EMIs.