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Mapping India’s Aspirations: The Dreams in Every Wallet
At Home Credit India, we launched 'The Great Indian Wallet Study' in 2023 to understand the aspirations and financial choices of lower-middle-income households. Now in its third edition, the study captures insights from 18-55 years old across 17 cities, with an average monthly income of ₹33,000.
With household incomes up to ₹5 lakhs annually, they demonstrate remarkable resilience and aspiration, navigating the challenges of limited resources and rising living costs. We explore their unique financial habits, characterized by careful budgeting, adaptability, and determination.
With this report, we aim to map the aspirations of the unsung architects that are building the economic future of India.
“Home Credit India's 2025 Great Indian Wallet Study reveals the financial dreams and challenges of lower-middle-income Indian households. This third edition highlights their resilience as "Earners, Dreamers, and Doers," actively pursuing entrepreneurship, homeownership, and their children's education. Despite anxieties, optimism prevails, especially among younger demographics ready to contribute to India's growth. The digital revolution necessitates financial education and trust-building. We're committed to leveraging these insights to empower this vital segment, fostering a more prosperous and inclusive future.”
Ashish Tiwari
Chief Marketing Officer
Home Credit India
The Financial Well-Being Index measures consumer financial health and sentiment, serving as both a diagnostic and predictive tool. It shows a gradual improvement in current financial situations, rising from 31 in 2023 to 35 in 2024, then slightly falling to 34 in 2025. Future expectations are optimistic, peaking at 64 in 2024 and dipping to 59 in 2025, indicating cautious confidence. The index reflects a generally positive outlook among Indian consumers, driven by hopes for better income, savings, and investments. While current finances are mixed, future projections show optimism and varied financial aspirations across gender, generation, region, and city-tier.
The study shows that lower-middle-class credit customers have a modest income-expense gap, with an average monthly income of ₹33,000 and expenses of ₹20,000, indicating limited financial flexibility. This highlights the need for accessible credit solutions to manage everyday costs and emergencies.
Balancing the Budgets: The Lion’s Share and Beyond
Around 50% of their budget goes to food and rent, reflecting financial pressure, while spending on education is rising, showing its growing importance. Other expenses like commute, medical, and utilities also significantly impact their budgets.
India’s Aspirations: A Glimpse into the Next Decade
Our study reveals that despite economic challenges, India's lower middle-income group is driven by strong aspirations. Key financial goals include starting or expanding a business (30%), owning a home (29%), ensuring better education for children (22%), and achieving financial stability through debt repayment (11%), emergency savings (7%), and retirement planning (5%). These ambitions highlight their determination and outlook for the next decade.
The Confidence Quotient: Belief in Achieving Near-Term Goals
Overall, 73% express confidence in their ability to achieve their financial goals within the next five years
The Horizon of Hope: Optimism for Future Financial Improvement
A significant majority, over 76%, express optimism regarding the potential for improvement in their financial situation over the coming
The Enabling Power of Affordable Credit
A substantial 65% believe that access to affordable credit would accelerate their progress towards achieving their aspirations
India’s lower middle class shows a unique mix of offline & online habits.
The Digital Ascent: Online Gains in Payments and Loans
While offline retail still dominates product purchases, online channels are rapidly growing in financial transactions and services.
From Cash to Clicks: The UPI Revolution in India
The widespread adoption of UPI plays a key role in this shift, driving digital payments and reducing reliance on cash. UPI has become essential for financial inclusion, offering a secure, seamless, and cost-effective platform for payments, bills, and investments.
Our comprehensive analysis makes it evident that the financial lives of India’s lower middle class households are deeply interwoven with both aspiration and adaptability. This segment demonstrates a strong sense of financial discipline — balancing essential expenses, cultivating savings habits, and proactively working toward both short-term security and long-term financial goals. Their behaviour reflects not only pragmatism, but a growing confidence in their ability to shape a better financial future
Please write to us at media@homecredit.co.in for any relevant queries.
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