India's Credit Expansion Faces Rising Over-Leverage, Slowing Growth

India has been giving more people loans, so many new borrowers joined banks.

But now a lot of those borrowers are borrowing too much, especially young people.

The number of people who are borrowing has grown, but the speed of that growth has slowed.

New borrowers are now a smaller share of all loans, meaning banks are lending more to people who already have loans.

Most loans are for things people use every day, like cars and credit cards, instead of buying big assets.

The share of Indians who have ever borrowed has jumped from 35% to 74% over nine years.

Women and young people are borrowing more too.

States in the north and center of India are seeing faster loan growth than older, more developed states.

The report says banks need to keep good lending rules as they expand into new areas.