Page 1 of 11
A Synopsis on
" A Study of Credit Cards In Indian
Scenario."
Submitted to
School of Commerce and Management
Yashwantrao Chavan Maharashtra open university
Nashik.
As partial fulfillment for the award of
Master of Business Administration (MBA)
BY: Shahin Mirkhan Pathan
PRN: 2020017001936194
Under the Guidance of
Dr.Deo P.P
Page 2 of 11
INDEX
Introduction ........................................................................... 01
Importance of the study ...........................................................01
Objective of the study ..............................................................02
Hypothesis of the study ............................................................03
pros & cons of credit cards ........................................................04
Research and Methodology ......................................................05
Method of Data Collection.........................................................06
Data Analysis and interpretation................................................07
Expected Contribution................................................................08
Chapterisation ...........................................................................09
Bibliography ..............................................................................10
Page 3 of 11
1 . Introduction
the concept of ' Buy Now , Pay Later dates back to the late 1960 &
70s with the introduction of plastic money in the western nation
. it originated because the people wanted a convenient and rapid
means of accessing bank account credit card is only an automatic
way of offering credit to a consumer . the dictionary defines a
credit card as ' A card which can be used to obtain cash good or
services up to a stipulated credit limit .
A credit card allows you to borrow money from a bank to make
purchases , whether you are buying a burger or a round - trip
ticket to UK . As long as you pay back the money you borrow
within the " grace period " of 25-30 days , you don't have to pay
extra . if you don't pay it back in that time period , you will
have to pay interest - a percentage of the money you owe the
bank - on top of what you borrowed . Before issuing a credit
card to individual , the bank has a look on his | her credit history
.
2 . Importance of the study
When used responsibly , a credit card can help you build a
good credit history , allowing you to get loan at favorable
interest rates , cheaper insurance and even a new cellular plan
credit cards can also help you earn rewards on your everyday
purchases and protect those purchases in case of theft or
damage . a credit card has become an indispensable part of our
lives , with its ease of use and convenient pay back option . the
Page 4 of 11
discounts , offer and deals that a credit card offer . and it is easy
to access .
1. All credit card issuers charge an annual fee which payable at
the start of the year it is the membership year , and not a
calendar year as a privilege , this fee sometime waived for the
first time when the time comes renewal of a card we can use it
for reward to settle annual fee .
2. if you pay by credit card there is implicit guarantee of
satisfaction because as a customer one can stop payment .
3. it help to establish a credit history and can help in getting
loan if needed .
4 . let you withdraw cash from designated ATMs using your
credit card you can use discretion when withdrawing cash on
your credit card because the charges are high for advance cash
3. Objective Of The Study :
Identify the different kinds of credit used to finance expenses ,
analyze the cost of credit and their relationships to risk and
liquidity it is used for purchases goods and services and to
make payment the credit card holder look out for are low
interest rate , reward point , cost of cash withdrawal , charge of
part payment , credit limit on loan .
Page 5 of 11
1. To find out the type of credit card used by people
2. To know the problems faced by credit card user .
3. To find out the influencing factors for credit card usage .
4. To assess the eligible credit limit and the actual credit limits
availed by the card holder .
5. To understand offer vocabulary and language used in
credit card offer , agreements statements .
6. which payment system are most popular and which are
likely to gain acceptance.
7. Develop methodologies and tools for the alignment of
credit portfolio with the agreement , working with other
bank .
8. Credit card APRs today may start with 0 percent for
introductory offers and range from 8.75 percent to more than
20 percent. These rates may be fixed or variable, but in any
case, when you carry a balance from month to month, this high
interest is added to what you owe.
9. Summarize government’s role in protecting lenders and
borrowers.
4 . Hypothesis Of The study :
Page 6 of 11
following hypothesis was made while analyzing the data :
Credit card purchases were associated with strong
activation in the striatum , which coincided with onset of
the credit card cue and was not related to product price .
A leading hypothesis is that credit cards reduce the pain of
payment and so ' release the brakes ' that hold expenditure
in check .
5. The Pros & Cons Of Credit Cards
:
Pros :
1 . A credit card provides a useful record of your spending
through your monthly statement and online account
2. you can get money when you need it .
3. using a line of credit by making purchases and paying
them off on time will help you get a good credit rating
from credit rating agencies.
Cons :
1. Since they are so easy to use they are also make it easy
to overspend .
Page 7 of 11
2. Some credit card have conditions that may put you in
difficulty if you have not read the fine print .
3. there is danger of someone can get hold of your credit
card number and misuse it .
6. Research Of The study :
1 The Indian credit card industry is expected to grow at a
CAGR of more than 25% during 2020 - 2025 due to the
increasing popularity of credit card and trend of
purchasing products first paying later
The number of credit card user in 2019 touched 52
million yet there are only about 3 credit card for every 100
people in Indian .
The credit cards profile covers the consumer credit
cards market.
The Indian credit cards sector had total balances
outstanding of $15.9bn in 2020, representing a
compound annual growth rate (CAGR) of 22.5% between
2016 and 2020.
Sector consumption volume increased with a CAGR of
20.6% between 2016 and 2020, to reach a total of 2.3
billion number of credit card transactions in 2020.
7. Methodology Of The study :
1 credit card bank advertiser or approaches the prospective card
holder .
Page 8 of 11
2 Issuer the credit card and fixes the money limit for use of
such credit card .
4. The gradual relaxation of monetary policy in India since
2014 has stimulated demand for credit. Despite this, credit
and charge card penetration is low in India, standing at 4.6
cards per 100 individuals in 2020.
8. Method of Data collection :
The Data collection begins after a research problem has been
defined and research design chalked out the data collected are
primary and secondary data.
Sampling Methods :
The sampling design of the research study consists of the following
categories namely employed person , professionals and other the
respondent of the sample size is 100.
Sampling Design :
under Non probability technique convenience sampling
being used when the population elements are selected for
inclusion in the sample based on the ease of assess its
called convenience sampling . this method is also known as
Page 9 of 11
accidental sampling because the respondents whom the
researcher meets accidentally are included in the sample.
Page 10 of 11
8. Data Analysis and Interpretation :
The data has been collected from the internet ,
journals , reference book etc...
Expected Contribution :
This research work will cover the study of Credit card in
Indian market. With increasing access to personal credit,
credit cards are now pervasively held by most consumers in
developed countries. This report summarizes the academic
findings on credit card choice and use by consumers in the
last two decades. The credit card market is becoming more
competitive and consumers are generally behaving rationally
to maximize their own utility. However, consumers are still
shown to misuse their credit cards, make obvious mistakes,
suffer from various behavioural biases and sometimes suffer
exploitation by the banks. This calls for the protection of
consumers in the credit card market, which is also the main
statutory objective of many public policy regulators
Chapterisation:
Chapter No 1 . Introduction to credit card
Chapter No 2. Importance of study.
Chapter No 3. Objective of study.
Chapter No 4. Data Analysis and Interpretation
Page 11 of 11
Chapter No 5. Expected Contribution.
Bibliography :
1. https://pdfcoffee.com/comparative-study-of-credit-cards-in-
indian-market-pdf-free.html
2. lobenewswire.com/news-
release/2020/11/03/2119495/0/en/Credit-Card-Users-in-India-
2020-A-Comparison-of-Leading-Brands.html
3.https://www.researchgate.net/publication/344386287_Usage_of_C
redit_Cards_through_ATMs_and_Pos_Pre_Demonetisation_in_India
4.https://www.researchgate.net/publication/344386287_Usage_of_C
redit_Cards_through_ATMs_and_Pos_Pre_Demonetisation_in_India
5. https://www.crifhighmark.com/media/2029/crif-creditscape-vi-
credit-cards-industry-in-india_final-report.pdf
Sign of Research Candidate Sign of Research
Supervisor .
