The rapidly changing financial habits in the country are now becoming a cause for concern. While earlier people used to give priority to savings, now a large number of people are becoming dependent on loans. Recent figures show that there is a tremendous increase in personal loans and high-risk loans, which is raising new questions about the economy. According to the report, the growth rate of bank deposits in the financial year 2025-26 remained between 9 to 11 percent, while the growth rate of loans reached 13.8 percent. That means there has been a difference of 3 to 5 percent between loans and deposits. This indicates that people are taking more loans instead of depositing money in the bank.
Personal loan becomes the biggest trend
The demand for personal loans has increased the most in recent months. This includes car loans, gold loans and other consumer loans. Due to easy digital process and fast loan availability, people have started borrowing more. It is a matter of concern that high risk loans are also increasing rapidly. Since December 2025, these loans have registered an annual growth of more than 17 percent. The risk of default on such loans is also high, which may increase the pressure on the banking system.
Mixed signals for the economy
According to experts, the increase in loans shows that demand and consumption is increasing in the market, which can be a positive sign for the economy. But if this trend continues for a long time, it may lead to financial imbalance. The Reserve Bank has also expressed concern over this situation. Banks are increasing interest rates to increase deposits, but still the expected improvement is not visible. Also, the central bank is advising banks to exercise caution so that any financial crisis can be avoided in future.
SK Sharma is a content writer who writes on news, entertainment, and lifestyle topics. She has over four years of experience and is known for conveying information in simple and clear language.
