Top 4 Banks In Credit Card Market: Check Out What They Offer

The credit card market is booming in India and the world. It is the most profitable business for banks or lenders across the banking sector. There is a various reason behind this. First, the interest rates on credit cards are very high, it ranges from 10% to 25% depending on the lender or banks. A credit card has an interest-free term that might last anywhere from 20 to 50 days depending on the bank.

Credit Cards In India

In India, the credit card business has witnessed a surge over the year and is still growing. HDFC Bank, SBI, ICICI Bank, and Axis Bank combined holds more than 70% of the Indian credit card market. HDFC Bank is the market leader of the credit card market with 23.61% followed by SBI (19.17%), ICICI Bank (17.57%), and Axis Bank (11.36%), respectively.

Interest Rate These Banks Charge

Bank	Interest Rates (p.m)	Interest Rate (p.a)
HDFC Bank	UP to 3.4%	NA
SBI	Up to 3.50%	42.00%
ICICI Bank	Up to 2.49%	29.88%
Axis Bank	Up to 3.6%	52.86%

Sourece: Banks Website

What makes credit card a good buy for the customers?

Convenience - A credit card allows the customers to pay for anything; there's no need to count out change or write a cheque when you have a credit card.
Recurring payment-It may be set up to make recurring payments for things like your phone, power, or gas bills. 

EMI Option -You may purchase items and pay for them in convenient instalments. This is a great example of purchase now, pay later scenario, and between purchase and payment during which the bank does not charge interest. 

Rewards/CashBack/Discount - You earn Rewards every time you spend with a credit card. You may exchange your points for fun gifts and vouchers like free shopping excursions or even free airline tickets. You also earn cashback and discounts on various purchases such as fuel or online merchants.

Compliment Accident Coverage -Many people are not aware of this fact. With a credit or debit card, the bank offers complimentary accident/death coverage. As a result, you get insurance coverage without having to pay a premium! All you have to do is meet a certain amount of spending.