Business: The rural, less educated and small families of the country are more burdened with debt. Urban, more educated and comparatively larger families are in a better position than these on the loan front. Women of the country are in a better condition than the men and their debt is much less.

According to a study published in the latest issue of Survey, the semi-annual magazine of the Statistics Ministry, 15 percent of the families living in rural areas have some kind of debt, while in cities this share is 14 percent. At the same time, 15 percent of non-educated and 15.7 percent of families educated up to primary or secondary are in debt, whereas in highly educated families this figure is only 13.2 percent.

According to the study, 17.8 percent of the families in the country with less than four people are under debt. This is higher than for relatively large families. Only 10 percent of families with a maximum number of eight people have some kind of debt. On the women’s front, this figure is only 9.1 percent. In comparison, 20 percent of men in the country have some kind of outstanding loan.

Self-employed, salaried and daily wage workers are more indebted
According to the study, 32 percent of the self-employed people of the country are under debt, which is the highest. The share of salaried people taking loans is 22.8 percent. 22.5 percent of daily wage laborers and 13.4 percent of people working as helpers have taken some loan or the other. Among those who do not work or are available for work, 5.1 percent are debtors.

study in national
Data from the 78th round (2020-21) of the National Statistical Office (NSO) Multiple Indicator Survey (MIS) have been used.

South Indians have more capacity to repay loans
Experts say that people in southern states have higher per capita income. They have more assets and better financial inclusion. This is why the capacity to take loans and repay them is also higher in these states. The people there also have more disposable income.

• Their loan versus deposit ratio is also above the rest of the country. Therefore, the people there have full confidence in the repayment of their loans. Financial institutions also have no problem in giving them loans.