Borrowers’ economy? 50-fold rise in credit card holders in six years for Gujarat

Updated: Jan 21st, 2024

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From June 2017 to Sept 2023, the number of personal loans in Gujarat increased by 2.3 times, compared to India’s increase of 3.5 times. However, where India registered a rise of 3.8 times for people using credit cards, that number rose 50-fold for Gujarat!

According to data released by RBI, the number of credit card holders in June 2017 was 54,742 in Gujarat, which increased to 27.19 lakh by Sept 2023.

Similarly, the outstanding amount on credit cards was only ₹199 cr in June 2017, now it has increased to ₹7,301 cr. 

With easy interest rates and faster identification of customers (KYC) in digital form, the use of credit cards and personal loans is increasing in India.

The number of personal loan borrowers in Gujarat has increased but the average outstanding amount has decreased.

The average outstanding personal loan in Gujarat at the end of Sept 2023 was ₹2,46,707 which was ₹3,22,922 in June 2017. This is a decrease of about 24%. On the contrary, the average balance on credit cards also indicates a decrease.

This amount has decreased from ₹39,264 to ₹29,843, so it can be said that due to the huge increase in the total outstanding amount.

India’s numbers

Between July 2017 and Sept 2023, the credit card balance in the country has increased 3.8 times from ₹65,843 cr to ₹2,22,238 cr. Similarly, the volume of personal loans has increased to ₹13,93,961 cr against ₹4,17,020 cr.

At the end of June, there were a total of 1.7 cr personal loan accounts in the country and the average outstanding loan was ₹2,49,913. At the end of Sept 2023, the number of borrowers has increased to 4.40 cr and the average outstanding loan has increased to ₹3,16,146. The number of credit card holders in the country was 2.47 cr which has now increased to 7.80 cr.

However, the average arrears have remained almost constant over this period. As against ₹26,577 earlier, now the average balance is ₹25,530.

Maharashtra leads the country in credit card usage. Maharashtra accounts for over 65% of the total credit card outstanding- meaning two-thirds of every ₹100 purchase is from Maharashtra alone.

Maharashtra also tops in terms of number of credit cards. At the end of Sept 2023, there were a total of 7.79 crore credit cards active in the country, out of which Maharashtra alone had 5 crore.

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