It’s never too early
to show your love
Send a Gift Card
Instant, thoughtful & perfect
for Raksha Bandhan
Learn about gift cards
What is a gift card?
Also known as brand vouchers, gift vouchers and brand cards, gift cards are a digital mode of payment which carries a amount along with a pin / card no. You can buy these gift cards and use them to pay on 300+ brand online and offline as well.
Why should I use a gift card?
Gift cards help you get great value on your purchase with a brand. They simplify giving, help with budgeting, and are easily sent across distances, ensuring your thoughtful gesture brings joy and value.
How to use a gift card?
To use a gift card, simply present it at the time of purchase in-store or enter the card’s unique code at checkout when shopping online. The amount of your purchase will be deducted from the card's balance.

Managing debt and loans for Indian employees

Last updated :
March 10, 2024

minutes read


As a young Indian employee or new graduate, managing debt and loans can be a daunting task.

With the high cost of living and low salaries, it can be challenging to stay afloat financially. However, with the right knowledge and guidance, it is possible to manage your debt and loans effectively.

In this article, we will help you understand debt and loans, the challenges you may face, and provide tips for managing your finances.

Understanding Debt and Loans

Debt is simply the amount of money you owe to others. Loans are a type of debt that is taken from financial institutions or lenders, which you repay with interest over a certain period of time.

There are different types of loans, such as personal loans, student loans, car loans, and home loans.

Type of Debt/Loan Description
Personal loan Borrowed from a bank or financial institution for personal use, such as paying for medical expenses or home repairs
Student loan Borrowed to finance education, including tuition, books, and living expenses
Car loan Borrowed to purchase a car, with the car as collateral
Home loan Borrowed to purchase a home or property, with the property as collateral
Credit card debt Debt accumulated through the use of credit cards
Payday loan Short-term loan with high-interest rates, typically taken out by individuals with low credit scores or financial difficulties
Business loan Borrowed by small or large businesses to finance operations or expand the business
Mortgage loan Long-term loan used to purchase a home or property, with the property as collateral
Line of credit Pre-approved amount of credit that can be used as needed, with interest charged only on the amount used
Overdraft Borrowing from a bank when there are insufficient funds in a checking account, with high-interest rates and fees charged

Understanding how debt and loans work is essential to managing your finances. When you borrow money, you have to pay interest on it, which can add up quickly. This interest rate is determined by factors such as your credit score and the type of loan. Failing to make payments on time can lead to penalties, late fees, and can harm your credit score.

Challenges Faced by Young Indian Employees and New Graduates

Young Indian employees and new graduates often face various challenges when it comes to managing their finances, including debt and loans.

One of the key challenges faced by young Indian employees and new graduates is the low salaries and entry-level jobs available to them. This can make it difficult to meet basic expenses and pay off any debt or loans.

With the high cost of living in many cities, it can be a struggle to make ends meet on a limited income.

Furthermore, many young Indian employees and new graduates may not have a good understanding of financial management, which can make it challenging to navigate the complex world of debt and loans. Without proper financial guidance, it can be easy to fall into debt and accumulate high-interest loans.

To overcome these challenges, young Indian employees and new graduates can take steps to improve their financial literacy and manage their debt and loans effectively.

Creating a budget, prioritizing debts and loans, making timely payments, and avoiding unnecessary debt can all help to alleviate financial stress and ensure a more stable financial future.

Tips for Managing Debt and Loans

Here are some tips to help you manage your debt and loans effectively:

Creating a Budget

A budget is a financial plan that helps you track your income and expenses. By creating a budget, you can identify areas where you can cut back on expenses and save money. This will help you stay on top of your debt and loans.

Prioritizing Debts and Loans

Prioritizing your debts and loans can help you stay focused on paying off the most important ones first. Start by paying off high-interest debts, such as credit card debt. This will help you save money on interest in the long run.

Making Timely Payments

Making timely payments is essential to managing your debt and loans effectively. Late payments can lead to penalties and late fees, which can add up quickly. Set up reminders or automatic payments to ensure you make payments on time.

Avoiding Unnecessary Debt

Avoid taking on unnecessary debt, such as loans or credit cards you don't need. Only borrow what you need and can afford to pay back.

Government Schemes and Initiatives for Debt Management

The Indian government recognizes the challenges faced by individuals when it comes to managing debt and loans, and has introduced several schemes and initiatives to provide much-needed relief and assistance. In this article, we'll provide a brief overview of the government schemes available for debt relief and loan assistance, along with the eligibility criteria and application process.

Government Schemes and Initiatives for Debt Management:

  1. Loan Waivers: The government may waive off loans for individuals who meet specific eligibility criteria. For example, the Government of India announced a farm loan waiver in 2019 worth Rs 70,000 crore to help farmers struggling with debt.
  2. Debt Restructuring: This involves modifying the terms of an existing loan to make it easier to repay. The government may offer debt restructuring for certain types of loans, such as home loans or education loans. For example, the Reserve Bank of India has introduced various schemes for the restructuring of loans for small businesses impacted by the COVID-19 pandemic.
  3. Interest Rate Subsidies: The government may offer subsidies on the interest rates of loans to help individuals repay their debt. For instance, the government offers interest rate subsidies on education loans for economically weaker sections of society.
  4. Loan Assistance Programs: The government may offer loan assistance programs to help individuals access credit for various purposes. For example, the Pradhan Mantri Mudra Yojana provides loans of up to Rs 10 lakhs to individuals looking to start small businesses.

Eligibility Criteria and Application Process:

  1. Income Criteria: Some government schemes may have specific income criteria that applicants must meet. For example, the Pradhan Mantri Mudra Yojana is available to individuals with an annual income of up to Rs 18 lakhs.
  2. Education and Certification: Certain schemes may require applicants to hold specific certifications or qualifications. For instance, the Stand-Up India Scheme, which provides loans for businesses run by women and individuals from SC/ST communities, requires applicants to hold a certificate of recognition from the Ministry of MSME.
  3. Application Process: The application process for government schemes typically involves submitting an application form and supporting documents, such as income certificates and loan documents. Some schemes may require additional steps, such as interviews or consultations with government officials.


In conclusion, managing debt and loans can be challenging, but with the right knowledge and guidance, it's possible to stay on top of your finances. By understanding debt and loans, prioritizing your debts, and creating a budget, you can take control of your financial situation. Don't forget to explore government schemes and initiatives for debt management that may be available to you.

Fashion Tour of India: Click & Discover!
Dive into India's colorful wardrobe with our easy-to-use map! Just click on a state and see what people wear, from timeless classics to trendy outfits. Plus, check out the cool brands they love. It's fun, fast, and full of surprises!
😎 Top selling gift cards now
😎 Top selling gift cards now
😎 Top selling gift cards now
More in this series

Claim This Offer
Only on Hubble Money
Shuaib Azam
Shuaib is a Marketing & Growth lead at Hubble. When he isn't working on growth initiatives, Shuaib writes fiction and doodles space monkeys.

Claim This Offer
Only on Hubble Money

More like this

No items found.
Get rewarded every time you shop.
Up to 10% discount on 300+ brands