India's Riskiest Loans: Unsecured Debt Defaults Soar, Especially Among Youth

• Unsecured loans (personal loans, credit cards) are India's riskiest, driving high default rates.
• RBI report shows 53.1% of retail loan defaults in scheduled commercial banks are unsecured.
• Private banks face 76% of defaults from unsecured loans; public sector banks 15.9%.
• Fintechs heavily disburse unsecured loans, over half to under 35s, increasing repayment stress.
• Credit card NPAs hit ₹6,742 crore; personal loan defaults highest in small loans and young borrowers.

Why It Matters: Unsecured loans are driving a significant rise in defaults across India, posing risks for borrowers and banks.