'Bank owns their next 15 years': Real estate advisor calls out India’s EMI-fueled lifestyle

India’s middle class is flaunting luxury apartments, cars, and international vacations but beneath the gloss, a growing number of families are trapped in what experts call the EMI Prison.

On Threads, real estate investment advisor Meet Paniya illustrated the problem with a Pune couple earning ₹3.5 lakh a month. Between a ₹1.5 lakh home loan EMI, a ₹50,000 car loan, ₹70,000 in lifestyle expenses, and annual foreign trips costing ₹3–4 lakh, their lives appear aspirational. 

In reality, he said, “the bank owns their next 15 years.”

This is no isolated case. Data shows 33–45% of salaried Indians’ monthly income now goes into EMIs, with many breaching the 40% safety ceiling advised by financial planners. The “earn, borrow, repay, repeat” cycle has become standard, leaving families asset-rich but cash-poor.

Household savings have collapsed to a 47-year low of 5.3% of GDP, making families vulnerable to medical crises or job losses. Defaults are climbing too — with 5% of personal loans overdue beyond 90 days, repayment stress is mounting.

The culture of lifestyle debt runs deep: nearly 70% of iPhones and a large share of consumer durables are now bought on EMI. Social pressures amplify the problem, with status symbols — homes, cars, gadgets, vacations — often financed rather than earned.

Financial advisors warn that unchecked borrowing risks decades of financial captivity. Capping EMIs at 40% of income is critical, they say, if India’s middle class wants to escape the illusion of prosperity and avoid long-term vulnerability.