A Study Of Credit Cards In Indian Scenario.

Index

Sr. Title Page

No. No.
01 Introduction 01
02 Importance Of The Study 01
03 Objective Of The Study 02
04 Hypothesis Of The Study 03
05 Need Of Credit Card 03

06 Limitations Of The Study 04

07 Research Methodology 05
08 Analysis And Interpretation 05
09 Conclusion 06
10 Bibliography 06
11 Chapterisation Scheme 07

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 A Study Of Credit Cards In Indian Scenario.

Introduction

What Is a Credit Card?

A credit card allows you to borrow money to buy things. There can be a cost to
borrowing that money (you might pay interest and fees), but there can also be a benefit (you
might earn rewards and build your credit.)

A credit card allows you to borrow money from a bank to make purchases, whether
you’re buying a burger or a round-trip ticket to France. As long as you pay back the money you
borrow within the “grace period” of 25-30 days, you don’t have to pay extra. If you don’t pay it
back in that time period, you’ll have to pay interest — a percentage of the money you owe the
bank — on top of what you borrowed.

Importance of the study

When used responsibly, a credit card can help you build a good credit history, allowing
you to get loans at favorable interest rates, cheaper insurance and even a new cellular plan.
Credit cards can also help you earn rewards on your everyday purchases and protect those
purchases in case of theft or damage.

 Having a healthy credit profile is important for everything from opening a new credit card to
renting an apartment — even for joining a new cell phone plan.
 The only way to build a healthy credit profile is to use credit responsibly, which includes holding
accounts, and paying everything off on time.
 Fortunately, that doesn't mean you need to take on debt or pay interest fees — as long as you
spend within your means and pay off your cards in full each month, you'll never pay interest,
and you won't carry any debt.
 A great credit card that you can open and use to help build your credit profile is the Freedom
Unlimited from Chase.

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 A Study Of Credit Cards In Indian Scenario.

Objective of the study

They encourage this by offering the consumer rewards. They do take some of the risk
due to fraud. The bank that issued the card makes money from interest and fees, in addition to
their portion of the swipe fee. The failure of the consumer to pay their balance is the
responsibility of the issuing bank.

 Continue our efforts to drive a robust compliance and control culture throughout the bank
through targeted measures that take account of the changing operating environment.

 Take steps to address the implications of the UK's decision to leave the EU in order to minimize
disruption to the business and to clients.

 Focus on generating capital in order to return it to shareholders; our long-term objective is to

distribute around 50% of profits to shareholders for 2019 and 2020.

 Develop methodologies and tools for the alignment of credit portfolios with the Paris Climate
Agreement, working with other banks.

 Launch pilot phase to define internal climate risk terminology and measure certain sector
exposures against defined climate scenarios.

 Review and further develop Credit Suisse's sector policies and guidelines for sensitive
industries.

 Continue to engage with peers and industry groups for the development of environmental and
social (E&S) due diligence approaches and the improvement of E&S disclosure.

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 A Study Of Credit Cards In Indian Scenario.

Hypothesis of the study

The cause and effect relationship between credit cards and spending has yet to be
adequately explored.

Credit card holders are doing Extra expenses due to facility of credit received through
credit cards.

Credit card holders are increasing their monthly liabilities through credit cards.

Income of Commercial Banks from issuing credit cards is increasing day by day.

NEED OF CREDIT CARDS

 Easy Access To Credit

The biggest advantage of a credit card is its easy access to credit. Credit cards function on a
deferred payment basis, which means you get to use your card now and pay for your purchases
later. The money used does not go out of your account, thus not denting your bank balance
every time you swipe.

 Building A Line Of Credit

Credit cards offer you the chance to build up a line of credit. This is very important as it allows
banks to view an active credit history, based on your card repayments and card usage. Banks
and financial institutions often look to credit card usage as a way to gauge a potential loan
applicant’s creditworthiness, making your credit card important for future loan or rental
applications.

 EMI Facility

If you plan on making a large purchase and don’t want to sink your savings into it, you can
choose to put it on your credit card as a way to defer payment. In addition to this, you can also

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 A Study Of Credit Cards In Indian Scenario.

choose to pay off your purchase in equated monthly installments, ensuring you aren’t paying a
lump sum for it and denting your bank balance. Paying through EMI is cheaper than taking out a
personal loan to pay for a purchase, such as a television or an expensive refrigerator.

Limitations of the study

These cards leads to overspending on the part of the holder and as such may
disorganize the organization’s cash budget and cash planning.
Limited as to the activities they can finance as they are ideal for financing working
capital items and not fixed assets in which case they are not a profitable source of finance.
They are expensive to obtain and maintain because of associated cost such as ledger
fees, registration, insurance, commission expenses, renewal fees etc.
It is a short-term source and is open only to a few establishments in which case a
company can obtain goods and services from those establishments that can accept them.
Entail a lot of formalities to obtain e.g. guarantees, presentation of bank statements and
even charging assets that are partially pledged to secure expenses that may be incurred using
these cards.
They may be misused by dishonest employees who may use them to defraud the
organization off goods and services which may not benefit such organizations.
Credit card organization may suspend the use of such cards without notice and this will
inconvenience the holder who may not meet his/her ordinary needs obtained through these
cards.

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 A Study Of Credit Cards In Indian Scenario.

Research METHODOLOGY
 Research Type
A research design is a clear plan about the research. The type of the study is Exploratory.
 Method of Data Collection
The task of data collection begins after a research problem has been defined and research
design chalked out. The data collected are primary and secondary data.
 Sampling Methods
The sampling design of the research study consists of the following categories namely
employed persons, professionals and others. The respondents of the sample size are 100.
 Sample Design
Under Non probability technique convenience sampling is being used. When the population
elements are selected for inclusion in the sample based on the ease of access, it is called
Convenience sampling. This method is also known as accidental sampling because the
respondents whom the researcher meets accidentally are included in the sample.

Data Analysis and Interpretation

The data collected will be analyzed with the help of relevant statistical tools.

CONCLUSION
The conclusion and suggestion of the will be clear after data collection and
interpretation of the statistical process in study.

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 A Study Of Credit Cards In Indian Scenario.

BIBlIOGRAPHY

1. https://www.nerdwallet.com/blog/nerdscholar/credit-card/
2. https://www.businessinsider.com/why-you-should-use-credit-cards-2018-1
3. https://www.credit-suisse.com/corporate/en/responsibility/approach-
reporting/objectives-achievements.html
4. https://www.scribd.com/document/18007997/1-Introduction-2-Objectives-3-Need-for-
the-Study-4
5. http://mtstcil.org/skills/budget-12.html
6. http://studentsrepo.um.edu.my/3437/7/chapter_3.pdf
7. http://www.ijstm.com/images/short_pdf/1422605647_432.pdf
8. https://www.academia.edu/9996970/A_Study_on_Customers_Satisfaction_Towards_Cr
edit_Card_Services_Provided_by_State_Bank_of_India_with_Special_Reference_to_Coi
mbatore_City

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 A Study Of Credit Cards In Indian Scenario.

CHAPTERISATION SCHEME

Chapter No. 1 Introduction

Chapter No. 2 Organization Profile & Review Of Literatures

Chapter No. 3 Research Methodology

Chapter No. 4 Data Analysis & Interpretation

Chapter No. 5 Conclusion, Bibliography

Research guide research student

(prof. neeta honrao madam ) (Prasad p. kale)

Date - prn no. 2018017000473382

Place - amravati

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