Under Digital India, the government is running a campaign to connect people from every corner of the country to the Internet. As a result of this, the trend of digital payment - like UPI has increased rapidly in India.
However, on the other hand, the number of people using credit cards is also increasing continuously. Most of the people who depend on credit cards are low-income people. A study has revealed that about 93 percent of salaried class people earning less than Rs 50,000 are running their lives through the plastic money.
85 percent of self-employed persons depend on credit cards
Computer Age Management Service (CAMS) company Think 360.AI has analyzed the financial behavior of more than 20,000 salaried class and self-employed persons in India during a year in a study. According to this study, 85 percent of the country's self-employed persons are dependent on credit cards.
Credit cards and BNPL have now become a necessity
The study report released by Think 360 AI on Tuesday states that 'Buy Now Pay Later' services are used by 18 percent self-employed and 15 percent salaried persons. Amit Das, Founder and CEO of 'Think 360.ai' said that in India's evolving debt landscape, credit cards and BNPL have now become a necessity for everyone, from salaried professionals to temporary workers.
Fintechs are leading India's digital loan revolution
This think tank report also mentions the growing influence of financial technology companies (fintechs), which are leading India's digital loan revolution. The study found that fintech companies disbursed personal loans worth more than Rs 92,000 crore in FY 2022-23, accounting for 76 percent of all new loans by volume.
Banks give many different offers
It is worth noting that credit card holders are given a fixed time limit by the bank to pay the debt. Apart from this, after spending up to a certain limit on credit card, banks give many different offers to the customers. These are quite popular for low income people from paying household bills to shopping. Meanwhile, now SBI has changed some rules for credit card holders. These changes include minimum amount due as well as free insurance and payment settlement process available on premium cards.
Prakash Kumar Paney