IndiaA recent study reveals that 93% of salaried individuals earning under ₹50,000 per month in India depend on credit cards, highlighting a growing reliance on plastic money among low-income groups.

A study by Think360.ai indicates that 93% of salaried individuals earning less than ₹50,000 per month in India rely on credit cards. The research analyzed the financial behavior of over 20,000 individuals and found that 85% of self-employed individuals also use credit cards. Additionally, 18% of self-employed and 15% of salaried individuals utilize Buy Now Pay Later (BNPL) services.

The study underscores the increasing dependence on credit products among low-income groups to manage cash flow. It also notes the growing dominance of fintechs in India's digital lending sector, with over ₹92,000 crore in personal loans disbursed in FY23, accounting for 76% of new loan originations by volume.

The findings suggest a need for lenders to adapt their risk assessment models and use AI-driven credit evaluation techniques to better serve these segments.

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