A new set of figures tabled in the Lok Sabha on Monday has shed light on how quickly household borrowing has expanded in India over the past seven years.
Responding to a question on “per capita debt per citizen”, the Finance Ministry clarified that the government does not calculate India’s per-capita debt burden. Instead, the available data reflects the average debt per borrower (people who have taken loans and have outstanding balances).
This distinction is crucial: average debt per borrower is not the same as the debt of an average Indian citizen, the Finance Ministry stressed.
Borrowers rising sharply; average loan load up 40% since 2018
According to Reserve Bank of India (RBI) data provided in Parliament, both the number of borrowers and the total debt they owe have risen sharply since March 2018.
Live unique borrowers increased from 12.8 crore (2018) to 28.3 crore (2025)
Total debt outstanding more than tripled—from Rs 43.6 lakh crore to Rs 135.1 lakh crore in the same period
Average debt per borrower rose from Rs 3.41 lakh in 2018 to Rs 4.77 lakh in 2025
This indicates a steady expansion of formal credit penetration, with more people actively borrowing from banks and NBFCs. The Finance Ministry noted that this data is sourced from credit institutions reporting to TransUnion CIBIL.
Household financial liabilities touch Rs 18.8 lakh crore in FY24
The government also placed year-wise numbers on the total financial liabilities of Indian households. These liabilities—primarily loans taken from banks, housing finance companies, and other financial institutions—have grown sharply over the last decade.
Financial liabilities stood at Rs 3.8 lakh crore in 2014–15
Rose gradually to Rs 7.7 lakh crore by 2018–19
Saw a jump after the pandemic period and reached Rs 18.8 lakh crore in 2023–24
Preliminary estimates for 2024–25 place liabilities at Rs 15.7 lakh crore
As a share of GDP, household liabilities moved from 3% of GDP in 2014–15 to as high as 6.2% in 2023–24, reflecting both higher borrowing and better access to credit.
India’s external debt crosses Rs 63 lakh crore in 2025
The government also shared India’s external debt trajectory over the last 11 years. The country’s external debt has increased steadily — from Rs 29.7 lakh crore in 2015 to Rs 63 lakh crore by March 2025, with the figure touching Rs 63.94 lakh crore by June 2025.
Year after year, external debt grew in line with India’s expanding economy and external financing needs. The only exception was 2020–21, when the figure saw a marginal dip.
What the numbers mean
While citizens often talk about “per capita debt”, the government clarified that such a metric is not officially calculated. Instead, available data shows:
More Indians are taking loans
The size of outstanding loans per borrower is rising
Household financial liabilities are growing faster than a decade ago
India’s external debt continues to climb in absolute terms
For policymakers, these numbers underline a growing dependence on credit—both at the household level and at the national level. For citizens, it highlights how access to loans has increased, but so has the average debt burden for those who borrow.
