India's Credit Crisis: 85% Borrowers Can't Afford Loans, Face Harassment

• A survey by Expert Panel reveals 85% of Indian borrowers allocate over 40% of income to EMIs, indicating a severe credit crisis.
• Most distressed borrowers are from private sector jobs (61%), business owners (23%), and the unemployed (15%), earning Rs 35,000-65,000 monthly.
• Job loss, medical emergencies, and business failures are primary triggers for debt struggles, pushing borrowers into a debt cycle.
• Desperate coping strategies include credit card rotation, new loans, and cutting essential spending like food and medical care.
• 72% of borrowers report harassment from recovery agents, including abusive calls, threats, and physical intrusions, violating RBI guidelines.

Why It Matters: India faces a severe credit crisis with 85% of borrowers unable to afford loans and facing harassment.