A 250-basis-point hike in the repo rate since May 2022 has hit most Indians rather hard in terms of higher borrowing costs. This has in turn impacted people’s aspirations, as reflected in changes in the purpose for which they borrow money, according to online financial products marketplace BankBazaar.com’s Aspirations Index (BAI), 2023.
For example, 47 percent of loan applicants availed of credit to build or buy a house in 2023, compared to 49 percent in 2022.
