Finance CEO calls consumer debt “modern-day Slavery,” warns of rising financial stress
text_fields
Aseem Dhru, MD & CEO of SBFC Finance, has sparked widespread discussion online after calling consumer debt “modern-day slavery.”
His detailed social media post has been widely shared for its sharp warnings about how easy credit is trapping many Indians in long-term financial strain.
Dhru writes that from the moment a person takes a loan, “you are enslaved to the system,” spending years repaying interest that chips away at financial freedom. He describes taxes as the first “master,” listing income tax, GST, stamp duty, capital gains tax, STT, municipal taxes, road tax, and fuel levies as examples of how the system extracts value at every stage of earning and spending.
The second “master,” he argues, is consumer credit.
He notes that while wealthy individuals often use borrowing to create more wealth, the poor frequently take loans for depreciating items like cars, phones, and consumer goods. Dhru highlights a proposed 50-year US mortgage to show how lenders benefit. He points out that it saves borrowers only $119 a month on a median-priced home but almost doubles the interest paid over the loan’s lifetime.
He quotes actor Kevin Spacey: “If you don’t have enough money to buy in cash, you can’t afford it,” adding that being able to pay EMIs does not mean a purchase is truly affordable.
Dhru raises concerns about India’s rising consumer credit. It increased from ₹38 lakh crore in FY21 to ₹67 lakh crore in FY24. During this period, personal disposable income grew at a 10% CAGR, while consumption grew at a 10.6% CAGR. Net financial savings fell from 10% to 7%.
He also notes that India’s non-mortgage loans, at 32% of GDP, are now the highest in the world.
He clarifies that homes are appreciating assets and business loans can be positive. But he says most consumption loans should be reconsidered. Dhru warns that people who live beyond their means often face “bad endings,” with missed EMIs causing family stress and the shame of debt collectors arriving at their homes.
He concludes with a caution: “Debt is like salt. A little enhances the flavour, a lot makes the food inedible.”