Rising inflation and over-leveraging by millennials using credit cards for big-ticket online purchases have pushed India’s credit card delinquency rate to its highest point in six months.
In June 2024, nearly 1.8% of cardholders missed payments—up from 1.7% in December 2023. Meanwhile, outstanding card dues have surged to nearly ₹2.7 lakh crore, reflecting increased dependency on credit for consumption.
🧠 Root Causes: Swipe, EMI & Repeat
Digital convenience and tempting online offers drive impulsive purchases on EMI.
Consumers often underestimate high compounding interest (up to 48% p.a.).
This leads to stagnated payments, minimum dues, and mounting debt rolls.
💡 EMIs vs Credit Card Revolving Debt: A Clearer View
| Feature | Standard Credit Card | EMI Conversion |
|---|---|---|
| Interest Rate | 2.5–3.5% monthly (~30–48% p.a.) | Lower fixed rate (12–24% p.a.) |
| Repayment Term | Open‑ended, minimum due each month | Fixed term, principal + interest |
| Impact on Credit | Leaves room for defaults & roll‑overs | Structured, easier to track |
| Budgeting | Hard to plan due to rising balance | Predictable monthly outflows |
Thanks to structured terms, EMIs are typically a safer route for repayment.
📝 Should You Convert Card Spend to EMI?
✅ Yes, if:
You’ve made a big purchase and struggle with paying the full bill upfront.
You want a fixed repayment schedule and better budgeting control.
You prefer to avoid lurking credit-card interest piling up.
⛔ Not ideal if:
The EMI rate is comparably high.
Pre-payment or foreclosure penalties apply.
🔍 Vizzve’s Smart Guidance on Using EMIs
Always compare rates before converting to EMI.
Opt for no-cost EMI options only with full transparency (no hidden charges).
Use EMIs judiciously—for planned, necessary purchases, not impulsive spend.
Track repayment schedules using Vizzve’s tools to avoid missed EMIs.
Avoid revolving debt—complete one EMI plan before starting another.
💬 Vizzve Insight: Budget First, Borrow Second
Rising delinquency is a red flag—don’t treat your credit card as a safety net.
EMIs offer repayment discipline—but only if they're planned.
Use EMIs, not as a crutch, but as a tool—borrow smart, repay smarter.
🚀 Final Thoughts from Vizzve
Credit card delinquencies are rising—and misuse is a contributor.
EMIs, when used responsibly, act as a buffer—not a burden.
At Vizzve Finance, we guide you on safe borrowing, smart repayment, and financial confidence—every step of the way.
Published on : 12th July
Published by : SMITA
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RBI-Registered Loan Partner | 10 Lakh+ Customers | ₹600 Cr+ Disbursed.