Hyderabad: The Telangana Socio-Economic, Educational, Employment, Political and Caste (SEEEPC) Survey-2024 has revealed that while debt in urban Telangana is less widespread and less visible than in rural areas, it remains strongly shaped by caste and unequal access to safe credit.The survey shows that rural households are more likely to borrow for marriages, medical needs and emergencies. However, urban data reveal that the shift towards business or institutional credit is not equally shared. Marginalised families in cities continue to borrow for illness, weddings and basic survival, while better-off groups access formal finance.The survey finds that 4.9% of urban households borrowed for marriage or medical expenses, compared to 8.5% in rural Telangana. Dependence on moneylenders is also lower in urban areas at 3.6%, against 9% in rural regions.The rural-urban chapter notes that such loans are more frequent in rural areas due to weaker access to savings, health insurance and other protective buffers. In contrast, urban households engaged in trade and services have relatively better access to bank loans, self-employment schemes and micro-enterprise finance.Distress borrowing unevenHowever, the urban picture is far from uniform. Caste continues to influence both the purpose of borrowing and access to lenders. Across the state, 7% of households reported loans for marriage or medical needs. The burden was highest among Scheduled Castes (10.9%), followed by Backward Classes (7.3%) and Scheduled Tribes (6.9%), and lowest among Other Castes (3%). Moneylender dependence stood at 6.8% overall — highest among Scheduled Tribes (9.7%), Scheduled Castes (8.8%), Backward Classes (7.1%), and lowest among Other Castes (5.1%).In urban Telangana, debt distress does not disappear — it changes form. Scheduled Caste households show significantly higher dependence on loans for essential needs. About 17.3% of urban SC households reported medical loans, compared to 4.9% among Other Castes. For marriages, 8.1% of urban SC households borrowed, against 3.3% among OCs.Reliance on moneylenders remains high among marginalised groups, with 14.6% of urban SC households and 14% of urban ST households reporting such borrowing, compared to 5.2% among OCs.
