85% people are paying more loans than their earnings. Image Credit source: AI generated
A survey conducted across the country has revealed the bitter truth of easy credit in India. It has been told that Buy Now Pay Later (BNPL) scheme, instant loan apps and personal loans are trapping thousands of people in the dangerous trap of debt. This survey has been done by the expert panel team of Eresolution Consultancy, which works on matters related to loan default, check bounce and problems of recovery agents.
This survey conducted on 10,000 financially distressed borrowers across the country between June and December 2025 revealed that 85% people are forced to spend more than 40% of their monthly income just on paying EMIs. People earning ₹35,000 to ₹65,000 per month are paying ₹28,000 to ₹52,000 in EMI alone. This is the same money which should be spent on ration, electricity bills, children’s education and treatment.
borrow from credit
It has been told in the survey that when most of the income is lost in EMI, then people adopt dangerous methods to save money. About 40% of troubled borrowers pay bills from one credit card to another, due to which the interest increases further. 22% people take help from friends and relatives, while some people go to illegal moneylenders.
postpone important work
65% people have reduced essential expenses. This includes steps like stopping children’s education, postponing treatment, closing insurance policies, reducing the food budget. Some people (16%) are taking salary advances, while 15% are selling their assets, such as gold jewelery (8%), property (2%) or withdrawing investments (5%). These methods may provide relief for 26 months, but later the debt increases and nothing is left for emergencies.
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Recovery agents harass you
When people are unable to pay EMI on time, recovery agents start harassing them. 72% people have complained of being harassed by recovery agencies. 67% receive 50 to 100 calls a month, that too with abusive language. The calls are deliberately made at 68 am and 810 pm. 39% people receive multiple calls from the same lender every day. 70% people also receive threatening messages on WhatsApp and SMS. In 11% of the cases, agents reach the home and in some cases even the office. In 18% of the cases, parents, spouses and even children have been threatened. Calls were made to 22% people’s parents or references given in the loan form. 12% people said that agents contacted their boss or office and put their job in danger.