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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:

1. Digital Revolution • One-click loans • Buy Now, Pay Later schemes

2. Aspirational Spending • Social media pressure • FOMO-driven purchases

3. Easy Credit Access • Fintech apps lowering barriers • Minimal credit checks

4. 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