Time: 10:00 PM, News Desk – India’s love affair with credit just hit a record high. India’s credit card spending touched a record ₹2.17 lakh crore in September 2025, marking a 23% year-on-year (YoY) rise and a 13% month-on-month (MoM) jump — the highest since 2020, according to the Reserve Bank of India (RBI) and CareEdge Research.
The surge happened due to bank-led festive offers, e-commerce mega sales, and a wave of limit hikes by private banks and NBFCs. But beneath the celebration lies a warning: India’s credit habit is expanding faster than its repayment capacity.
Hard numbers, soft warning: how India’s credit use exploded in a year
| Metric | September 2025 | September 2024 | Change |
|---|---|---|---|
| Total Credit Card Spends | ₹2.17 lakh crore | ₹1.76 lakh crore | +23% |
| Outstanding Balances | ₹2.82 lakh crore | ₹2.51 lakh crore | +12% |
| Active Credit Cards | 11.3 crore | 10.6 crore | +7% |
| Average Spend per Card | ₹19,100 | ₹16,600 | +15% |
| E-commerce Share | 67% | 59% | +8 pp |
| Users Carrying Dues | 44% | 39% | +5 pp |
Source: RBI, CareEdge Research, Worldline India, EaseMoney analysis
What triggered this record
- E-commerce boom: The Flipkart Big Billion Days and Amazon Great Indian Festival, it was started on September 23, almost end of the month, but it has pushed spending ahead of Diwali. Massive offers and GST cuts on consumer goods spurred record digital transactions.
- Banks raised credit limits: Most major private banks and NBFCs increased card limits by 10–30%, targeting users with a clean repayment history. Higher limits, higher confidence, higher spends.
- Instant card approvals: New cards flooded the market between September and November, because the approval times dropped to under five minutes on e-commerce platforms or most banks do co-partnership with brands for issuing instant limits and credit line.
- Gen Z embraced credit: Younger users mostly under 25 or 30 are now India’s fastest-growing credit segment — they see cards as lifestyle tools, not financial traps.
- Public banks catching up: While private banks (PVBs) still hold 74.2% of market share, public sector banks (PSBs) grew to 21.2%, up from 18.4% last year, largely from Tier-2 and Tier-3 cities.
Private banks lead, but PSBs gain ground
| Bank Group | Sep 2024 | Sep 2025 | Market Share Change |
|---|---|---|---|
| Private Banks (PVBs) | 75.5% | 74.2% | ▼ -1.3 pp |
| Public Banks (PSBs) | 18.4% | 21.2% | ▲ +2.8 pp |
| Foreign Banks (FBs) | 5.1% | 4.1% | ▼ -1.0 pp |
| Small Finance Banks (SFBs) | 1.0% | 0.5% | ▼ -0.5 pp |
Source: CareEdge BFSI Research (Nov 2025)
Public banks, especially SBI, saw per-card spending jump 30% to ₹16,927 — outpacing private banks’ 3% growth to ₹20,011 — thanks to digital upgrades and better reward structures.
India vs Global Credit Card Penetration
| Country | Adults Using Credit Cards | Remark |
|---|---|---|
| India | 4.6–5% (~13% including all credit forms) | Fast growth but low literacy |
| USA | 70%+ | High usage, high debt |
| UK | 65%+ | Credit-heavy economy |
| Singapore | 80%+ | Multi-card norm |
| South Korea | 90%+ | Oldest mature credit culture |
India’s credit card reach is still small — but the growth pace is explosive. More people now see cards as identity, not liability. But here’s the problem: credit knowledge hasn’t grown at the same speed.
The real concern — debt stress is rising
Unlike before, Indians are now carrying higher balances and higher utilisation. Despite record transactions, credit card outstanding balances grew only 3.7% year-on-year, and actually fell 2.3% month-on-month, to ₹2.82 lakh crore. This means more people are spending, but not everyone is repaying faster.
Easemoney found that the average user now utilises 50–55% of their total limit, compared to 42% last year.
| Credit Utilisation | Risk Zone | What It Means |
|---|---|---|
| 0–30% | Safe | Builds a healthy credit score |
| 31–50% | Caution | Manageable, but monitor |
| 51–70% | Risk Zone | Credit dependency visible |
| 71–100% | Red Alert | Triggers score fall, bank flags risk |
High utilisation may look normal — but for users with multiple cards, it’s a hidden debt bomb. Each card’s EMI may seem small, but add them together, and you will find many households paying double their monthly salary in EMIs, interest, and charges.
That’s how good credit turns into daily stress.
How to stay safe when the swipe fever hits
- Credit is not bad — mindset is – Treat your card as an asset that builds your credit record, not as a shortcut for lifestyle spending.
- Keep utilisation below 40% – Spending over half your limit regularly signals credit dependency and lowers your score.
- Pay full, never partial – Minimum payments lead to snowballing interest — ₹10,000 unpaid can become ₹13,500 in six months.
- Avoid stacking cards. – Multiple cards look fine — until all EMIs pile up. Total card EMIs should never cross 40% of your monthly income.
- Think twice about limit hikes– Banks raise limits for profit, not generosity. Decline them if you don’t need them.
- EMIs aren’t always safe. – “No-Cost EMI” isn’t free — it hides GST and processing charges.
- Track repayment dates religiously – Late fees + GST + interest = stress. Automate payments if possible.
EaseMoney View
India’s ₹2.17 lakh crore record shows a strong, digital, and confident economy — but also a dangerous comfort with credit.
Credit cards are not bad — the mindset is. India is very new to credit cards. Use credit like an asset, not a wishful shortcut. Because every swipe is not just a transaction — it’s a promise to your future income.
Banks earn from your interest. You earn peace only from discipline.
In 2025, India doesn’t need fewer cards — it needs smarter card users. Credit power isn’t how much you can borrow — it’s how much you can control.
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