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Kolkata: If usage of credit cards rises fast, can defaults in payments and accumulation of outstanding dues be far behind? It has been reported that the rising adoption of credit cards is resulting in a very fast accumulation of dues, which is a concern for the industry. But credit card outstanding is perhaps equally concerning for the individual borrower since credit card dues multiply very fast since these plastic conveniences carry the highest interest rates among all instruments of retail loans.
According to reports, data from CRIF High Mark reveal that credit card payments that are due between 91 and 360 days have surged 44% in just one year. In simpler words, an on March 31, 2025, unsettled credit cards dues stood at Rs 34,000 crore. In credit card parlance, these are referred to as NPA or non-performing assets. As almost all users know, it is very easy to overspend on a credit card.
SBI Card offers a feature which enables an individual to high-value transactions into EMIs, which can be far more affordable. Any amount above Rs 2,500 can be converted into EMIs which can address financial stress. It is called SBI FlexiPay. Let's have a look as to how one can use it with the user's ID and password.
ONE: Use the user ID and password to log in to sbicard.com
TWO: Click ‘Benefits’ tab, hen click ‘FlexiPay’
THREE: Find which transaction you want to convert to EMI; click ‘Show Offer’
FOUR: Choose the interest rates, processing fee from dropdown menu
FIVE: Select tenure of EMI you are comfortable with
SIX: Check a box to agree to terms and conditions
SEVEN: Confirm
After the entire process is done and set in motion, one can track the payments through the website.
That individuals are turning more and more to credit cards was also corroborated by a survey conducted recently by Think360.ai, a CAMS company. Think360.ai is a data science and AI firm that is in the business of finding smarter credit decisions. The survey involved as many as more than 20,000 salaried and self-employed individuals in the country over a 12-month period. The study found that as many as 93% of salaried and 85% of self-employed individuals who earn less than Rs 50,000 a month rely on credit cards a lot. Both persistent financial strain and rising aspirational consumption drive this usage of credit instruments like credit card and Buy Now Pay later schemes.
The Reserve Bank of India has been wary of rising levels on unsecured credit in the country and has been trying to rein in the boom in this segment. In November 2023, the centra lank also raised the risk weightage in personal loans in order to discourage reckless borrowing beyond one's limits.
