Middle class – A lifestyle they can’t afford? Private banker questions why India’s middle class won’t cut back

India’s middle class simply does not spend more, it spends it. Mumbai-based private banker Roshan Mahbuban has limited contradiction to LinkedIn Post.

“Public media, which show the life of the rich and famous, are putting pressure on the middle class for the design of such a lifestyle,” said Mahbuban.

From international travel to luxurious fixtures, the optics of success often prioritize financial reality.

“Personal loans, credit cards and Easy Emis have enabled the middle-class consumers to buy luxury items that were timed out of time.” But this increase in credit availability has also led to many household balloon obligations.

“This” aspiration trap “leads to savings and investment lifestyle expenses,” explains Mahbuban. As a peer lifestyle develops, so pressure to keep the pace, regardless of the level of income.

“Life creeping, where discretionary expenditures increase income income, families are moving to the standard of living standards.” Even as inflation bites, the necessary amount of costs, often continues unchecked.

Many people justify indulge as emotional relief. “These expenses are seen as a gift of hard work, despite the financial tension, that they can cause them.”

Recently, the founder of Marcellus Investment Managers Surabh Mukherjian recently offered Stark Evaluation at Podcast. “The middle class has borrowed his hand with a fist.” RBI data shows that credit card and retail loans have been loans in the last decade from 4% to 11% of the total bank loan.

He warns that 5-10% of the middle class Indians are in debt spiral, and it is very unlikely to repay. RBI’s Financial Stability Review reveals:

• 45% of borrowers is a subsection.
• 48% of their debt consumes, not an investment.
• 67% have personal loans.
• 25% keeps credit card, personal credit and at least one high ticket loan.

“This is not just a borrowing for investments. This is a loan to survive, “Mukherjian said.