Stop glamorising EMIs: Financial analyst explains why India wants financially resilient citizens, not debt-slaves

A financial analyst has raised alarm over rising household debt levels in India, revealing that nearly 33% of monthly salaries are being used to repay EMIs even before accounting for basic expenses like rent, groceries, or savings. The data, based on a recent study shared by the analyst, covers more than 3 million digitally active Indians and shows growing financial stress across income groups.

High-income groups also feeling the heat

According to Sujay U, the analyst who shared the findings on LinkedIn, higher-income individuals are not spared either. In many cases, up to 45% of their monthly income is going toward loan repayments. These include home loans, car loans, credit card dues, and buy-now-pay-later schemes.

“In cities like Mumbai, just paying the home loan can eat up nearly half a paycheck,” Sujay said.


The study finds that household debt has reached 42% of India’s GDP by the end of 2024. This is affecting the ability of people to build emergency savings or make long-term investments. National savings have declined to 5.3% of GDP, a 47-year low.

“That number should rattle us all,” Sujay warned.

RBI flags rise in loan defaults

The Reserve Bank of India has already highlighted an increase in defaults, especially in unsecured and microfinance loans. The concern is that even a small disruption in income—such as a job loss, illness, or economic downturn—could lead to widespread repayment failures.

Lifestyle shift driving the crisis

Sujay pointed to a deeper issue behind the trend: “The new EMI-driven lifestyle means flashy gadgets and instant gratification, but it’s debt-driven and threatens long-term financial health.”

He added, “EMIs crossing 40% of net income are a red flag.” He urged that financial literacy and budgeting are no longer optional but have become essential life skills.

He ended his post saying: "India’s growth miracle depends on financially resilient citizens, not debt-slaves. Let’s stop glamorising EMIs and start smart, sustainable wealth-building."