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The EMI Trap: India's Youth in a Debt Spiral
Easy Monthly Installments (EMI): The siren song of modern consumerism. But is it luring India's youth into a financial abyss?
The EMI Trap Explained:
→ Attractive low monthly payments especially for bikes and phones (college swag) → Long repayment periods → Hidden fees and high interest rates
Why It's Booming:
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Digital Revolution • One-click loans • Buy Now, Pay Later schemes
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Aspirational Spending • Social media pressure • FOMO-driven purchases
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Easy Credit Access • Fintech apps lowering barriers • Minimal credit checks
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Financial Illiteracy • Lack of long-term planning skills • Misunderstanding of compound interest
The Youth Factor:
• 65% of India's population under 35 • First-time credit users • Impulse-driven spending habits
Alarming Trends:
→ 40% rise in personal loans (2022) → 30% increase in defaults among 21-35 age group → Growing debt-to-income ratios
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