Goodbye Gullak: India’s Middle Class Now Lives on Swipe, Not Save

India’s middle class is living on borrowed time—and borrowed money  
In a widely shared LinkedIn post, Ashish Singhal, co-founder of CoinSwitch, declared, “That India is gone,” referring to a generational shift in financial behavior. His comments come in response to new RBI data showing that non-housing personal loans now account for 54.9% of household debt—surpassing home loans for the first time.

This marks a dramatic departure from the “save first, spend later” ethos of previous generations. Today’s middle class is increasingly relying on credit cards, EMIs, and personal loans to fund lifestyle purchases—from smartphones to vacations—rather than long-term assets. Debt per capita has surged to ₹4.8 lakh, with many households spending more than they earn.

Experts warn that while this credit-fueled consumption may boost short-term demand, it risks creating a fragile financial ecosystem vulnerable to shocks.

Key insights 

• RBI data: personal loans now form 54.9% of household debt; housing loans at 29%  
• Debt per capita rises to ₹4.8 lakh, driven by lifestyle spending  
• Cultural shift from savings to credit-led consumption  
• Experts caution against long-term financial instability  
• CoinSwitch’s Ashish Singhal calls it a “generational reset” in money habits  

Sources: Business Today, Navbharat Times, CNBC TV18