Household sector debt climbs to 45.5% of GDP in Sep 2025: RBI report

The RBI reported that household sector debt rose to 45.5% of GDP in September 2025, staying above its five-year average of 42.9%. Non-housing retail loans now constitute 58.4% of total household borrowings, with consumption-purpose loans accounting for nearly half of total borrowings. While experts have flagged risks from rising consumption-driven debt for depreciating assets, the central bank noted improving borrower profiles, with a higher share of prime-rated borrowers and housing NPAs declining to 0.5% in March 2026 from 1.2% in March 2019.