Banks Push Secured Credit Cards Amid Slowdown
Indian Economic Updates : Banks Push Secured Credit Cards Amid Slowdown
As the Indian credit card industry experiences a slowdown after rapid growth, banks are increasingly promoting secured credit cards backed by term deposits. Traditionally used by business professionals and those without fixed incomes, these cards are now gaining traction among larger banks like Axis Bank and HDFC Bank. Secured cards offer higher approval rates, often around 100%, with limits typically 70-85% of the deposit amount. With a recent decline in new card issuances—from 1.2 million monthly last year to 500,000-600,000—fintechs are leveraging secured cards to capture the underserved credit market. Companies like Paisabazaar and Super.Money are leading this shift.
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