The trend of buying loans among Indians has increased, for the first time in a month so many lakh crores of rupees have been spent

According to the report, monthly card expenses rose to Rs. 1 lakh crore and Rs. 1,01,200 crore. This is an increase of 26 per cent over the previous month.

The trend of buying loans among Indians has increased, for the first time in a month so many lakh crores of rupees have been spent

The trend of Indians taking loans and shopping has started to increase. This trend has been seen due to the effect of Covid-19 on savings and ease of getting credit cards. According to the report, credit card purchases increased by 12 per cent during October, the last festive season, while credit card spending reached close to Rs 1 lakh crore for the first time in a single month.

During the festive season, Indians bought heavily

In the last festive season, Indians have made a lot of purchases through credit cards. According to a report by a brokerage house, monthly card expenses rose to Rs. 1 lakh crore and Rs. 1,01,200 crore. This is an increase of 26 per cent over the previous month.

This is an increase of 56 per cent over the same month last year. This figure is 19 per cent higher than before the epidemic i.e. October 2019. During this period, the average cost per use of credit card has also increased. Compared to last year, the average monthly cost per card in October was Rs. 10,700 crore to Rs. 15,200 crore.

This amount is also above pre-epidemic levels. This has led to an increase in the number of credit card transactions. There were an average of 3.3 transactions with each credit card during October. The figure was 2.8 in September and 3.1 in March 2021.

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ICICI Bank Leads in Credit Card Distribution

One of the biggest reasons for the increase in credit card purchases is the availability of easily available cards. A large number of people got new credit cards during October. More than 1.3 million new credit cards were added to the banking system in October. With the increase, the total number of credit cards has risen to 6.64 crore, according to RBI data.

On a monthly basis, it has recorded the fastest growth in the last 14 months. ICICI Bank led the way in issuing 2.78 lakh new credit cards in October. HDFC Bank issued 2.58 lakh new cards, followed by Axis Bank with 2.20 lakh new cards, SBI Card with 1.84 lakh new cards and RBL Bank with 1.51 lakh new cards.

Why the rise in credit card purchases?

According to the report, the surge in figures was due to the festive season, with the economic recovery and the growing share of credit cards also contributing significantly. Amid growing pressure on savings after Kovid, Indians also focused more on redeeming offers like cashback and No Cost EMI on credit cards from banks.

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