93% salaried people earning less than Rs 50,000 per month are dependent on credit cards, 85% of self-employed people

The reliance of low-income people on credit cards is growing. A study by Think 360.ai states that about 93% of salaried individuals earning less than Rs 50,000 per month depend on this plastic money. At the same time, 85% of self-employed people are also reliant on credit cards.

According to the study released on Tuesday, 'Buy Now and Pay Later' (BNPL) services are utilized by 18% of self-employed and 15% of salaried individuals. The research is based on analyzing the financial behavior of over 20,000 salaried and self-employed persons. 

Amit Das, Founder and CEO of Think360.ai, said that in India's evolving credit landscape, credit cards and BNPL have become essential for everyone from salaried workers to temporary laborers. Referencing the increasing influence of fintech companies, the study noted that these firms are leading India's digital loan revolution. Fintech companies issued personal loans worth over Rs 92,000 crore in FY 2022-23, making up 76 percent of all new loans by volume.