Kerala ranks among the states and union territories with the lowest savings and highest household debt in the country, according to the latest report by NABARD. The report, based on a survey of one lakh households across India, highlights the financial challenges facing the states post-COVID.

While on average 66 per cent of households nationwide have savings through banks, post offices, self-help groups, and chits, only 35 per cent of households in Kerala report savings in these forms.

In contrast, 11 states, including Uttarakhand (93 per cent), Uttar Pradesh (84 per cent), and Jharkhand (83 per cent), report savings above 70 per cent.

Nationally, 18 per cent of households prefer to keep their savings at home. The survey, conducted during July 2021 to June 2022, found the average annual savings for earning households to be Rs 20,139 per month.

Kerala lags in investments

Kerala also falls behind in investment options such as land, gold, government bonds, fixed deposits, shares, and Kisan Vikas Patra. Less than 20 per cent of households in Kerala, Goa, Jammu and Kashmir, Karnataka, and Meghalaya have made such investments.

Debt in Kerala

The report also reveals that 52 per cent of households in India are in debt, with agricultural households at 55 per cent and non-agricultural households at 48 per cent. The national average household debt is Rs 90,372, with agricultural families owing Rs 91,231 and others owing Rs 89,074.

However, Kerala tops the list for the highest household debt, with an average of Rs 1,98,951, nearly double the national average. States like Nagaland (Rs 1,97,229), Mizoram (Rs 1,81,531), and Goa (Rs 1,79,973) follow closely behind. In contrast, Jharkhand has the lowest average household debt at Rs 21,060.

Household Debts:

  • Kerala: Rs 1,98,951
  • Nagaland: Rs 1,97,229
  • Mizoram: Rs 1,81,531
  • Goa: Rs 1,79,973
  • Punjab: Rs 1,59,237
  • Ladakh: Rs 1,45,201
  • Arunachal Pradesh: Rs 1,42,358
  • Gujarat: Rs 1,41,351
  • Jammu and Kashmir: Rs 1,39,358
  • Telangana: Rs 1,29,599
  • Himachal Pradesh: Rs 1,28,656
  • Karnataka: Rs 1,14,196
  • Manipur: Rs 1,05,667