Credit Card Spending, Personal Loans Zoom
People have now become more dependent on personal loans and credit cards due to not having cash in hand.
A big jump has been seen in spending using credit cards and personal loans in the RBI’s annual report.
People’s spending power is getting reduced with the deepening economic crisis. According to the RBI’s annual report released in August, now people are becoming more dependent on credit cards than on debit cards. According to this report, in the year 2016-17, there was a transaction of Rs 1,08.71 crore by credit card and total spending of Rs 3,28,400 crore. In the year 2017-18, there was a transaction of 1,40 crores and spending of Rs 4, 59,000 crore. After this, in 2018-19, the transaction was at 1,76 crore but there was a huge spike in spending and this reached Rs 6,33,000 crore. On the other hand, no increase was seen in spending through debit cards. In the year 2016-17, there was a transaction of 2,39 crore and spending of Rs 3,29,900 crore. In the year 2017-18, there was a transaction of 3,34 crore and spending of Rs 4,60,100 crore. The same applied to the year 2018-19. This year, there was a transaction of 4,41 crore and spending of Rs 5,93,500 crore. The reduction in the common man’s spending is also evident from loan statistics. In 2018, the total share of loans for agriculture and related activities was 7.5% which increased to 9.3% in 2019. The total share of loans for small, medium and large industries was 5.9% in 2018, which increased to 13.5% in 2019. The total share of loans in the services sector was 50.8% in 2018, which decreased to 36.2% in 2019. This means that along with the slowdown, the share of loans in this sector has also decreased. Meanwhile, there has been a massive jump in personal loans. In 2018, the total share of debt in personal loans was 38.5%, which increased to 40.9% in 2019. It is clear that due to declining jobs, people are using credit cards and loans to meet their daily expenditure needs.
People’s spending power is getting reduced with the deepening economic crisis. According to the RBI’s annual report released in August, now people are becoming more dependent on credit cards than on debit cards. According to this report, in the year 2016-17, there was a transaction of Rs 1,08.71 crore by credit card and total spending of Rs 3,28,400 crore. In the year 2017-18, there was a transaction of 1,40 crores and spending of Rs 4, 59,000 crore. After this, in 2018-19, the transaction was at 1,76 crore but there was a huge spike in spending and this reached Rs 6,33,000 crore. On the other hand, no increase was seen in spending through debit cards. In the year 2016-17, there was a transaction of 2,39 crore and spending of Rs 3,29,900 crore. In the year 2017-18, there was a transaction of 3,34 crore and spending of Rs 4,60,100 crore. The same applied to the year 2018-19. This year, there was a transaction of 4,41 crore and spending of Rs 5,93,500 crore. The reduction in the common man’s spending is also evident from loan statistics. In 2018, the total share of loans for agriculture and related activities was 7.5% which increased to 9.3% in 2019. The total share of loans for small, medium and large industries was 5.9% in 2018, which increased to 13.5% in 2019. The total share of loans in the services sector was 50.8% in 2018, which decreased to 36.2% in 2019. This means that along with the slowdown, the share of loans in this sector has also decreased. Meanwhile, there has been a massive jump in personal loans. In 2018, the total share of debt in personal loans was 38.5%, which increased to 40.9% in 2019. It is clear that due to declining jobs, people are using credit cards and loans to meet their daily expenditure needs.
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