Indians Struggle to Repay Credit Card Dues as Overdue Bills Soar 44% to ₹33,886 Crore

Credit card overdue payments in India have reached alarming levels. According to CRIF High Mark data, unpaid dues between 91 and 360 days shot up 44% year-on-year to ₹33,886 crore by March 2025. This delay period categorises the amount as non-performing assets (NPAs), indicating rising borrower stress.

Most Defaults in the 91–180 Days Range

The highest pressure lies in the 91–180 days overdue category, with unpaid dues climbing to ₹29,983.6 crore from ₹20,872.6 crore a year ago. This is nearly double the amount seen two years back.

Portfolio at Risk on the Rise

CRIF data shows that the Portfolio at Risk (PAR), the percentage of risky credit card loans, is increasing. For 91–180 day overdue cards, the PAR jumped to 8.2% in March 2025 from 6.9% last year. For 181–360 day overdues, it rose to 1.1% from 0.9% in 2024 and 0.7% in 2023.

Credit Card Spending Keeps Rising

Despite rising defaults, credit card usage in India continues to grow. Outstanding dues climbed to ₹2.90 lakh crore by May 2025, compared to ₹2.67 lakh crore the previous year. Credit card spending also saw a 15% jump to ₹21.09 lakh crore by March 2025. In May alone, Indians swiped cards worth ₹1.89 lakh crore, a massive leap from ₹64,737 crore in January 2021. The number of active credit cards also rose to 11.11 crore in May 2025 from 6.10 crore in January 2021.

Why Are People Swiping So Much?

Banks and fintechs have aggressively promoted credit cards through cashback offers, reward points, no-cost EMIs, and lounge access. For many, especially in urban areas, credit cards have become a lifestyle accessory rather than just a payment method.

The Hidden Cost of Easy Credit

While using credit cards is convenient, repaying them isn’t. Interest rates on overdue amounts range from 42% to 46% annually, among the highest in the world. Customers often fall for attractive offers without fully understanding the cost of delayed repayments.

Read More:Loan Defaults in India Rise to 3.6% in FY25, Credit Card NPAs Jump 28%!

Impact on Banks and Borrowers

Rising defaults hurt not only consumers but also banks. Since credit card loans are unsecured, banks can't recover dues through assets like houses or vehicles. As NPAs rise, banks may tighten credit, which can slow down consumer spending and affect the overall economy.

In 2023, the RBI already raised the risk weight on credit card loans, making it more expensive for banks to issue them. For individuals, defaulting can damage credit scores, making it difficult to secure future loans or even rent a house or get a job.

Conclusion

Credit cards are a useful financial tool, but come with serious responsibilities. If used carelessly, they can lead to unmanageable debt, damaged credit scores, and long-term financial setbacks. Consumers must remember: credit cards are not free money. Pay wisely, or pay heavily.

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