New Delhi, Apr. 8- Credit card loan outstandings have increased by 28 percent to Rs 6,742 crore in the last year, the Reserve Bank of India (RBI) said.
what happens if you don’t pay your credit card loan
Credit card usage has increased in the last three years due to increased consumer spending and use of digital payments. In parallel, credit card loans that are not repaid within the due date have also increased.
The outstanding loans of Rs 5,250 crore in December 2023 have increased by 28.42 percent to Rs 6,742 crore in December last year. In a year, credit card outstandings have increased by nearly Rs 1,500 crore.
While banks have reduced their overall bad loans from Rs 5 lakh crore in 2023 to Rs 4.55 lakh crore last year, credit card bad loans have continued to increase.
The amount of unpaid credit card debts has increased by more than 500 percent in the last four years.
If customers fail to pay their credit card balances on time, banks charge interest of 42 to 46 percent per annum on the outstanding amount, according to bank officials.
In addition, as the credit scores of customers also decline, their ability to get loans is also affected.
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