Credit cards lose ground as small-ticket personal loans gain traction: CIBIL

What happened

A report by CIBIL indicates that credit cards are losing popularity as consumers increasingly opt for small-ticket personal loans, reflecting changing financial behaviors.

Causal chain

Shift from credit cards to personal loans Changing financial behaviors

India impact

Sector impacts

Nifty Financial Services −

Decline in credit card usage may impact financial services.

Short term (1–4 weeks)

Negative impact on credit card issuers.

Long term (3–6 months)

Potential for continued shift in consumer preferences.

Sources

· Credit cards lose ground as small-ticket personal loans gain traction: CIBIL