While a significant number of middle-class households in India hold a credit card, a personal loan, a home loan, an auto loan, or some other financial product, using them can be complex and difficult. Millions of customers are either stuck with loans or dues at a rate higher than what they can even afford.
According to media reports, credit cards have witnessed a twofold rise in the past few years in India, reaching a staggering 10.80 crore as on December 2024. While they offer greater convenience and rewards for consumers, they also raise concerns about rising household debt, with average annual interest rates hovering between 30 percent to 48 percent.
In extreme cases, lenders do offer relief by allowing payment of…