Doubling of credit card spending scary, carries fear of default: Aparna Ramchandra

Credit card spending has hit an all-time high of Rs 14 trillion, up 47.2% YoY, with online spending accounting for 63%, according to Rectify Credit. The fintech lender’s founder, Aparna Ramchandra, warned that the data was deeply worrying as many purchases were unnecessary and there were fears over how many customers had paid back their credit card repayments on time. She said many customers had converted outstanding debt to EMIs, while they were also turning increasingly to personal loans to pay unexpected bills, even when borrowing at punitive rates of 18% to 24%.