India's household debt reached 41.3% of GDP by March 2025, exceeding its five-year average of 38.3%, according to the RBI's Financial Stability Report. This increase is driven by a rise in non-housing retail loans, particularly personal and unsecured loans for consumption, which now constitute 55.3% of household borrowing. Despite the rise, India's debt ratio remains lower than China's and Malaysia's. The RBI noted that the risk profile of borrowers is stable, with an increasing share of prime-rated customers.