Personal Loans on the Rise in India: A Look at the Data and What it Means

Soaring personal loans in India, now a significant portion of total bank credit deployed, raise questions: are they a cause for concern or a hidden opportunity? This article investigates.

In recent days, I have delved into the trends of personal loans in India, intrigued by their individual-centric nature and the insights they offer into behavioral shifts within our economy. These shifts not only reveal significant changes in consumer demand for goods and services but also reflect broader economic transformations. By examining how preferences for certain products and services have evolved, we can gain fundamental insights into diverse aspects of the Indian economy, spanning different geographies, demographic groups, markets, and business sectors. Such analysis is crucial for informing business strategies and guiding policymakers in addressing potential imbalances that could lead to systemic risks or uncover new opportunities. This article will feature a series of charts, mostly derived from my dashboard analyses, that are designed to be self-explanatory, allowing readers to grasp the full narrative without the need to wade through extensive text. So, without further ad…