Indians are now borrowing more than before

A maturing banking market has meant Indians are now borrowing more from the formal financial system than before.

A maturing banking market has meant Indians are now borrowing more from the formal financial system than before.

The average lending rate have come down. (Shutterstock)

The cost of borrowing, although falling in recent months, is now a fixed factor in most households’ monthly expense.

The following line chart shows the fall in bank loan rates over the years.

For 1991-2000, the SBI Advances rates are taken as the benchmark.

For 2000 onwards, the average lending rates as collated by RBI are taken as the benchmark; wherever there is a range, the lowest end of the range has been taken.

Charts by Harry Stevens, Research by HT Business Desk