FINANCEOUTLOOKINDIA8 JULY, 2026REPORT60% OF INDIAN FAMILIES SPEND NEARLY ALL INCOME ON EMIS: DEBT SURVEYBORROWING COSTS MAY RISE AS INDIA'S 10-YR BOND YIELD FACES UPSIDE RISKGODREJ CAPITAL ENTERS GOLD LOAN BUSINESS WITH STRATEGIC ACQUISITIONSENSEX AND NIFTY SLIP AS US TARIFF PROPOSAL HITS PHARMA STOCKSRBI KEEPS REPO RATE AT 5.25%, PREDICTS INDIA GDP GROWTH AT 6.9%For millions of Indians, spending nearly all their income on EMIs has become more than a financial burden - it has turned into an emotional and psychological struggle. Behind every unpaid EMI lies a family grappling with job loss, medical emergencies, rising living costs, and mounting pressure from recovery agents.A new analysis by an Expert Panel, based on inquiries and counselling sessions with distressed borrowers, paints a deeply concerning picture of the country's growing debt crisis. The findings reveal that nearly 60% of borrowers seeking assistance are either making only minimum payments or have completely stopped repaying their loans, indicating severe financial distress. Borrowing costs in the bond market could increase in the coming months as upside risks to India's 10-year bond yield continue amid an uncertain macroeconomic environment, according to a report by Bank of Baroda (BoB).Godrej Capital has entered the gold loan business with its first-ever acquisition, marking a major step in expanding its financial services portfolio.The company has acquired the gold loan business of Kanaka-durga Finance through its subsidi-ary, Godrej Finance, as it looks to strengthen its position in consumer lending and accelerate its long-term growth plans.The acquisition gives Godrej Capital immediate access to an established gold loan business with around Rs 280 crore in assets under management (AUM), nearly 12,000 customers, 54 branches across Andhra Pradesh, and a team of around 250 employees. The Reserve Bank of India (RBI) has opted to keep the repo rate unchanged at 5.25%, continuing with a neutral monetary policy stance to ensure the monetary policy is not hurt by the inflationary pressures or growth concerns. RBI Governor Sanjay Malhotra made the statement after the Monetary Policy Committee (MPC) unanimously decided to keep the policy rate unchanged in its first bi-monthly monetary policy meet for the current financial year.The committee also did not change the Standing Deposit Facility (SDF) rate at 5% and the Marginal Standing Facility (MSF) rate and Bank Rate remained at 5.50% respectively. The meeting, which was led by Governor Malhotra, started on Monday and ended with a unanimous decision by the MPC to keep policy continuity despite the changing domestic and global economic conditions Indian equities remained under pressure on Wednesday, with Sensex and Nifty extending losses through the afternoon session as selling intensified in pharmaceutical stocks on US tariff proposal and weakness spread across the broader market.The BSE Sensex was down 776.07 points, or 1%, at 76,694.04. The Nifty 50 declined 222.60 points, or 0.92%, to 23,965.10, falling below the 24,000 mark during the session. The market had opened on a weak note, with the Sensex starting the day at 77,081, lower by nearly 388 points, while the Nifty opened 90 points lower at 24,097. Selling picked up within the first hour of trade, and neither index managed to recover meaningfully. The report said the outlook for India's 10-year bond yield remains uncertain and will depend on evolv-ing global conditions, including war-related developments, liquidity conditions, inflation, and govern-ment borrowing. It noted that the Reserve Bank of India's current rate cycle is likely to remain cautious, even in the absence of a rate hike - a stance that, according to the report, is expected to keep upside risks to India's 10-year bond yield persisting.
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