India’s growing love for credit cards, once a sign of rising consumer confidence and digital progress is now showing signs of trouble. According to data from CRIF High Mark, credit card payments overdue between 91 and 360 days have jumped 44% in just a year. That means nearly Rs 34,000 crore of credit card dues remained unpaid for over three months as of March 2025.
These long-overdue payments fall under the category of “non-performing assets” (NPAs), the same label used for bad bank loans. In short, a lot of people are struggling or choosing not to pay back their credit card bills on time.
The numbers paint a worrying picture
Looking closely, most of the stress is in the 91-180 days overdue range. The unpaid amount in this category has gone up to Rs 29,983.6 crore, from Rs 20,872.6 crore the year before, almost double what it was two years ago, according to a report by The Indian Express.
CRIF High Mark also tracks the percentage of credit card debt that’s at risk, called the Portfolio at Risk (PAR). This too is rising steadily. For cards overdue 91-180 days, PAR rose to 8.2% in March 2025 from 6.9% a year earlier. For 181-360 days overdue, it went up to 1.1%, from 0.9% in 2024 and 0.7% in 2023.
Credit use is surging
Despite the growing debt, credit card usage in India is booming. As of May 2025, total outstanding credit card debt stood at Rs 2.90 lakh crore, up from Rs 2.67 lakh crore the year before. Spending is also on the rise: by March 2025, credit card transactions had hit Rs 21.09 lakh crore, a 15% jump from the previous year, the report mentioned.
In just one month, May 2025 – Indians swiped credit cards worth Rs 1.89 lakh crore, compared to just Rs 64,737 crore in January 2021. The number of active credit cards is also growing fast: 11.11 crore in May 2025, up from 10.33 crore in 2024 and just 6.10 crore in January 2021, as per the report.
Why are there so many swipes?
So what’s behind this sharp rise? Banks and fintech firms have flooded the market with tempting offers such as cashback, discounts, reward points, free lounge access and no-cost EMIs. For many, especially in cities, credit cards have become more than a payment tool, they’re a lifestyle.
But while swiping is easy, the repayment isn’t. Credit card debt is extremely expensive in India, with annual interest rates between 42% and 46% if dues are not cleared in time.
“Customers often get lured by flashy offers and rewards. But if they don’t repay on time, they end up paying exorbitant interest,” the publication quoted a senior bank official as saying.
The surge in defaults isn’t just bad for borrowers, it affects banks and the economy too. Credit card loans are unsecured, meaning there’s no asset like a house or car to recover money if someone doesn’t pay. As defaults rise, banks might tighten their lending, slowing down the credit growth that fuels spending.
In 2023, the RBI had already raised the risk weight on credit card loans, making it costlier for banks to issue them.
There’s also a personal cost: defaults hurt credit scores. A poor credit score can make it harder to get loans, rent a home, or even land a job in some industries.
Time to use credit more responsibly
Credit cards offer great flexibility, but they come with serious responsibilities. Experts now say the focus should shift from spending to managing debt smartly.
Banks, fin-techs and regulators need to step up efforts to educate users about how billing cycles work, what interest rates really mean and why timely repayment matters. And for consumers, the message is simple: credit cards are not free money. They’re a tool, one that must be used wisely. Otherwise, the cost can be painfully high.