Credit cards have been gaining ample momentum with the Indian consumer, thanks to the new “digital age”. A credit card wasn’t always this well known in consumer circles, but as India has seen a good deal of growth, and with the government trying to digitize the economy, Indians have discovered that credit cards are useful tools for payment, as well as for retail loans. Credit card usage is mainly attributable to the convenience of not having to carry cash and is a lot safer to handle while moving around. Credit cards offer something more than just a form of cash. They entail access to credit without much involvement of elaborate paperwork in case of taking retail loans. As a way to transfer money, credit cards result in higher purchasing power for Indians. As of the end of 2019, some 55 million credit cards were being used by Indians according to the Reserve Bank of India’s data reports.
With the Reserve Bank of India coaxing banks and credit card institutions to offer low-interest rates on EMIs and loans, plus on rollover credit, consumers get attracted to using credit cards rather than other payment modes. This is the RBI’s intention, as India becomes a more transparent economy with financial efficacy. The RBI wishes to have a record of economic activity, and the only way to do this is through digitization. At the end of 2019, the Reserve Bank of India reported that there were approximately 54 million credit cards in active use. In the last four years, the compound annual growth rate is about 24% for credit card use. Although slow, it is still very significant and shows that Indians are slowly warming to the idea of credit card usage.
As a developing country, making strides in different economic segments, India has seen an increase in credit card usage, as people have become savvier with their financial behaviors. They demand better products and can afford them as exposure to education and employment make them economically stable. A few years ago, most people in India didn’t even possess a bank account. Now they have credit cards to use at their disposal. The majority of Indians, mostly millennials and youth, all have Aadhaar cards and find that documents required for a credit card are not that difficult to procure, as was the case in previous times. At the end of 2019, credit card expenditure was at 6,51,368 crores, a rise of 32% over the eight years prior to that. Most users used credit cards to purchase lifestyle products, book tickets, and pay utility bills. Many people also use them to pay for larger expenses in EMIs. E-commerce platforms offer heavy discounts on consumables, tempting even lower-income and salaried segments of society to apply for credit cards and spend, according to the RBI sources.
Eligibility for a credit card
Most banks and financial institutions offer credit cards with exciting offers attached to attract users into applying for them. The usual age of eligibility for most bank credit cards is 21 years of age. Nonetheless, if you apply online for the Bajaj Finserv RBL Bank SuperCard, a credit card with four powerful functions, the minimum age is 25 years. This premium credit card from one of the most reputed financial institutions in India, Bajaj Finserv, is a co-branded card with RBL Bank, and offers low-interest rates (a mere 1.16% per month) on loans up to 90 days when you pay on EMIs. You can use it as an ATM card as well, interest-free for up to 50 days. The SuperCard offers rewards when you shop as well, while the card is also protected from cybercrime and fraudulent transactions. Here’s a list of required steps and documents that you need to submit to apply for the SuperCard.
- You can fill the application form online.
- You will need to submit some documents in physical form too.
- Documentation that you need is proof of identity – Aadhaar Card, PAN card, passport etc.
- Documentation for proof of address, such as electricity bills, or passport, or Aadhaar Card.
- You will need to submit a photograph.
- You may be required to submit proof of income as well.
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