They earn less than Rs 50,000, but this is how 93% salaried Indians are spending more

Credit cards are no longer just a luxury item for the wealthy. A new study shows that nearly 93% of salaried Indians earning under ₹50,000 per month now rely on credit cards to manage their expenses, reflecting a growing dependence on short-term credit among lower-income groups.

According to a report by Think360.ai, a data science and AI firm, this trend is not limited to salaried workers. Around 85% of self-employed individuals surveyed also use credit cards to meet their daily financial needs.

The study, which observed the financial habits of over 20,000 salaried and self-employed individuals across India over a 12-month period, highlights a shift in how people access credit in today’s digital world.

BNPL Also Gaining Popularity

It’s not just credit cards. The Buy Now, Pay Later (BNPL) model is quickly catching on too. The study found that 15% of salaried individuals and 18% of self-employed people are using BNPL services.

“In India’s evolving credit landscape, products once seen as aspirational, credit cards and BNPL, are now essentials for everyone, from salaried professionals to gig workers,” said Amit Das, Founder and CEO of Think360.ai, as quoted by PTI.

Fintechs Leading the Charge

The report also points to the rising influence of fintech companies in India’s credit market. In FY23, fintech firms disbursed over ₹92,000 crore in personal loans, making up 76% of all new loan originations by volume.

The study notes that digital-first credit solutions like credit cards and BNPL are becoming especially important for low and middle-income earners who often struggle with cash flow or are not well-served by traditional banks.

Inputs from PTI