Rising household debt highlights cautious personal loan borrowing

The Reserve Bank of India's latest report shows household debt has increased from 36.6% of GDP in June 2021 to 42.9% in June 2024. This rise highlights the importance of borrowing only when necessary to avoid falling into debt. To manage personal loans effectively, experts suggest borrowing only what is needed and choosing a repayment tenure that fits your budget. Comparing interest rates and understanding all associated fees is also crucial. Maintaining a good credit score can help secure lower interest rates. Setting up auto-debit for repayments and avoiding unnecessary add-ons can further reduce financial strain. It is advisable to borrow from regulated lenders to avoid high-interest loans.