India’s Household Debt Rises to 45.5% of GDP as Consumption Loans Drive Borrowing: RBI

India’s household debt rose to 45.5% of GDP by Sept 2025, up from 41.3% the prior fiscal year, staying above the five‑year average of 42.9%. Growth is driven by consumption‑led borrowing, with non‑housing retail loans at 58.4% of total debt. Analysts warn of reliance on depreciating assets like vehicles, though borrower quality has improved. Housing loans show a shift to larger tickets (44.7%) and stronger asset quality (NPAs at 0.5%). India now ranks fourth globally in household debt share.