As the banks are improving customers' credit card sourcing and an increased awareness among customers to have good credit record, Indian credit card consumers are no longer revolving their credit dues, with most of the customers repaying credit dues fully, bankers say.
This was a healthy trend, Mr. Jairam Sridharan, President and Head (consumer lending and payments) of Axis Bank, said at the launch of the bank's new co-branded credit cards.
"The revolvement rate has come down over the years - from around 50 per cent in 2005 to 15 per cent now. The credit card base has eroded sharply and a lot of customers who revolved payments have left the industry. Now, cardholders are also more aware of the importance of a good credit history and many of them prefer to pay their dues before expiry of the interest-free credit period," Mr. Sridharan said.
According to Mr. Pallav Mohapatra, chief executive of SBI Cards, many credit card customers who revolved dues are now converting these into equated monthly installments.
"The percentage of customers who revolve their dues to total customers is declining. It is good from the issuer's point of view, as risks are reduced," Mr. Mohapatra said.