When asked if they use credit cards, many Indians, particularly those aged 40 and over, would respond, “We don’t subsist on borrowings”. The same folks, on the other hand, would pay their newspaper delivery men, maidservants, milkmen, and others at the end of each month, completely ignorant to the fact that they read the newspaper, utilise maid servants’ services, drink milk, and so on a monthly basis.
Similarly, a credit card allows a user to purchase goods and services on credit, with payment due at a later date – generally the due date, which is a defined day every month following the conclusion of each credit cycle. Users do not have to pay any interest on the amount spent using credit cards if the full payment is paid on the due date. As a result, consumers must exercise caution in ensuring that the amount they spend on credit cards or other credit instruments does not exceed their ability to pay. The notion of credit, on the other hand, is rapidly changing, with a slew of creative Fintech businesses offering appealing solutions that, when used wisely, may make life simpler.
Furthermore, with the tech-savvy younger population embracing such goods, the term “credit” is quickly becoming a household term in India. As a result, an increasing number of consumers are willing to buy things utilizing novel credit mechanisms rather than depending entirely on their savings.
The perception of credit in India has altered considerably over time. While most Indian families used their savings for large purchases, they were wary of using credit. However, with millennials gaining purchasing power, things have changed,” said Raghuvir Gakhar, CEO of PC Financial. “Credit is now seen fundamentally differently than it was in the early 2000s, thanks to technological advancements such as simple EMIs and credit card payment choices. “Today’s new-age financial revolution is centred on transforming consumer credit trends, led by FinTech companies,” he stated.
“A growing number of consumers are using their mobile phones to apply for credit online”. As a result, FinTech enterprises are driving the trend of unsecured loan availability and accessibility, which will unleash the actual potential of the common Indian consumer,” Gakhar added.