Credit Card Dependency: The use of credit cards has increased rapidly in India. A study has shown that 93% of the salaried class people earning less than Rs 50,000 in India are dependent on credit cards. 85% of the people doing their own business are dependent on credit cards.
Credit Card Dependency: Credit card has become an essential part of life nowadays. With its help, shopping, ticket booking, hotel booking and even food orders can be done easily. Dependence on credit card is increasing day by day in the country. This is a matter of concern. A recent report has revealed that about 93 percent of people earning less than Rs 50,000 have become dependent on credit cards. 85 percent of self-employed people are also on this path. In this study, the expenses of more than 20,000 people have been analyzed in the last 12 months.
A study by Think 360.ai says that ‘Buy Now Pay Later’ (Buy Now Pay Later – BNPL) services are used by 18 percent self-employed persons and 15 percent salaried persons. Amit Das, CEO of Think 360.ai said that now services like credit card and BNPL have become necessary for salaried as well as freelancers.
Fintech companies are creating a new ecosystem
This think tank report also mentions the growing influence of financial technology companies (fintechs), which are leading India’s digital lending revolution. The study said that fintech companies have distributed personal loans worth more than Rs 92,000 crore in the financial year 2022-23. This is 76 per cent of all new loans by volume.
Know what is a credit card
Credit card is a plastic card, which is just like a debit card (ATM card). Through a debit card, we can withdraw money from our bank account. Whereas, through a credit card, we can do shopping by borrowing money from a bank or NBFC. Every month, a bill of credit card expenses is received, which has to be paid by a certain date. If payment is not made, interest has to be paid on the remaining amount.
