Finance Company CEO’s Post Calling Consumer Debt ‘Modern Day Slavery’ Is Winning Hearts
Aseem Dhru warns that individuals living beyond their means often face “bad endings,” with missed EMIs triggering family stress and the humiliation of debt collectors at the door.
A social media post by Aseem Dhru has struck a chord online after he described consumer debt as “modern day slavery,” warning that easy credit is pushing many Indians into long-term financial distress.
The MD & CEO of SBFC Finance argues that the moment a person takes a loan, “you are enslaved to the system,” spending decades buying back freedom through interest payments. He likens taxes to the first “master,” pointing to income tax, GST, stamp duty, capital gains tax, STT, municipal taxes, road tax and even fuel levies as evidence of how the system extracts from every stage of earning and spending.
The second “master,” he says, is consumer credit. Whether it’s a car, a phone or a home, Dhru notes that while the wealthy borrow to generate more wealth, the poor often borrow to buy depreciating items—creating a cycle lenders benefit from. He cites the example of a proposed 50-year US mortgage, which would save borrowers just $119 in EMI on a median-priced home but nearly double total interest paid.
Quoting actor Kevin Spacey: “If you don’t have enough money to buy in cash, you can’t afford it,” Dhru cautions that the ability to manage EMIs doesn’t mean one can truly afford the item.
He flags a sharp rise in Indian consumer credit from Rs 38 lakh crore in FY21 to Rs 67 lakh crore in FY24, noting that while personal disposable income has grown at 10% CAGR, consumption has risen faster at 10.6% CAGR, and net financial savings have slipped from 10% to 7%. Most worrying, he says, is that non-mortgage loans at 32% of GDP are now the highest in the world.
While he calls a home an appreciating asset and business borrowing accretive, Dhru says most other consumption loans need a rethink. Individuals living beyond their means, he warns, often face “bad endings” with missed EMIs triggering family stress and the humiliation of debt collectors at the door.
Debt, he concludes, “is like salt. A little enhances the flavour, a lot makes the food inedible.”
