A PROJECT REPORT ON

“INDIAN CONSUMER’S PERCEPTION ON CREDIT

CARDS”

Dissertation Report Submitted to the

Chanaveerappa Mallappa Managuli Arts, science and Commerce College

Tq : Sindagi . Dist : Vijayapura

UNDER GRADUATE BACHELOR OF COMMERCE

By
OM.M.GAYAKAWAD
U15ND21C0011

Under the Guidance of

HOD of b.com department
SIR . GOVIND BADIGER .
& SMT . JYOTI MADAM

Chanaveerappa Mallappa Managuli Arts, science and Commerce College

Batch 2022-2024
 GUIDE CERTIFICATION

This is to certify that the dissertation titled “INDIAN CONSUMER’S PERCEPTION

ON CREDIT CARDS has been prepared under my guidance and supervision. The
report is submitted in partial fulfillment of the requirement for the UNDER GRADUATE
BACHELOR OF COMMERCE by student name OM .M. GAYAKAWAD
Reg No U15ND21C0011 .

Place: SINDAGI. Guide Name:

Date: July 15, 2024 SIR . GOVIND BADIGER

SMT . JYOTI MADAM
 STUDENT DECLARATION

I hereby declare that the dissertation / study titled

“INDIAN CONSUMER’S PERCEPTION ON CREDIT CARDS”
prepared under the guidance of Sir. Govind Badiger and Smt. Jyoti Madam
submitted in partial fulfillment of the requirement of under graduate Bachelor
of Commerce in chanaveerappa Mallappa Managuli Arts sciences and commerce
college .

Place: Sindagi Name of Student: Om .M. Gayakawad

Date: July 15, 2024 Signature : Om M Gayakawad

 ACKNOWLEDGEMENT

I would like to express my gratitude to everyone who supported me throughout

the course of this dissertation. I acknowledge my sincere thanks to all those whose
guidance made my efforts succeed. I would like to thank my dissertation guide
Sir. Govind badiger and Smt. Jyoti madam for providing with me a base to start
off with my dissertation work.
I would also thank my friends for providing me with continuous support and
encouragement to go about completing my internship successfully.
I also thank all those who directly or indirectly helped me in completing this
dissertation.

Om M Gayakawad
U15ND21C0011
 TABLE OF CONTENTS

CHAPTER PARTICULARS PAGE NO

NO
Executive Summary
1 INTRODUCTION
Introduction 1
Scope and importance of the study 7
Review of literature 8
Objectives of the study 14
Limitations of the study 14
Chapter scheme 14
2 INDUSTRY / COMPANY PROFILE
Product profile 16
Major competitors 19
Company or product SWOT Analysis 20
3 METHODOLOGY AND DATA BASE
Sampling Technique 25
Sample size 25
Sample design 25
4 DATA ANALYSIS AND INTERPRETATION 27
5 SUMMARY OF FINDINGS, CONCLUSION AND 56
SUGGESTIONS
BIBLIOGRAPHY 60
ANNEXURE 63
 LIST OF TABLES

SL. NO DESCRIPTION PAGE NUMBER

1 Gender wise classification of respondents 28
2 Age wise classification of respondents 29
3 Occupation wise classification of respondents 30
4 Marital status wise arrangement of respondents 31
5 Educational qualification wise arrangement of respondents 32
6 Annual income wise arrangement of respondents 33
7 Credit card holder wise arrangement of respondents 34
8 How long an individual using credit cards 35
9 How many credit cards are you having 36
10 Name the bank of credit card which you are using 37
11 How did you come to know about the credit card 38
12 Do you want to be a credit card holder for life long 39
13 Why do you prefer this bank credit card 40
14 The usage of credit card is more important 41
15 Does credit card issue by your bank gives more security 42
16 Does the customer care personally respond you at all time 43
17 Are your bank credit cards are accepted to pay for personal 44
expenses
18 How do you pay the bills of credit card 45
19 Will you change if the advance facilities are offered by another 46
bank
20 How often do you use credit card in a week 47
21 The reasons for using credit card 48
22 Monthly amount of expenditure done by credit card 49
23 Where do you use credit card often 50
24 How would you rate your bank credit card (from the scale of 51
1-5) 1 being the least and 5 being the highest
25 Hypothesis Testing 52
A. Correlation B. Regression C. Annova
26 Residual Output 53
27 Probability Output 54
 LIST OF FIGURES/ CHARTS/ GRAPHS

SL. NO DESCRIPTION PAGE NUMBER

1 Gender wise classification of respondents 28
2 Age wise classification of respondents 29
3 Occupation wise classification of respondents 30
4 Marital status wise arrangement of respondents 31
5 Educational qualification wise arrangement of respondents 32
6 Annual income wise arrangement of respondents 33
7 Credit card holder wise arrangement of respondents 34
8 How long an individual using credit cards 35
9 How many credit cards are you having 36
10 Name the bank of credit card which you are using 37
11 How did you come to know about the credit card 38
12 Do you want to be a credit card holder for life long 39
13 Why do you prefer this bank credit card 40
14 The usage of credit card is more important 41
15 Does credit card issue by your bank gives more security 42
16 Does the customer care personally respond you at all time 43
17 Are your bank credit cards are accepted to pay for personal 44
expenses
18 How do you pay the bills of credit card 45
19 Will you change if the advance facilities are offered by another 46
bank
20 How often do you use credit card in a week 47
21 The reasons for using credit card 48
22 Monthly amount of expenditure done by credit card 49
23 Where do you use credit card often 50
24 How would you rate your bank credit card (from the scale of 51
1-5) 1 being the least and 5 being the highest
25 Residual Output 52
26 Probability Output 53
54
 EXECUTIVE SUMMARY

This executive summary provides an overview of a preliminary study conducted with a sample
size of 101 respondents to investigate consumer awareness and perception regarding credit cards.
Credit cards play a significant role in modern financial transactions, and understanding how
consumers perceive and interact with them is crucial for both financial institutions and
consumers themselves. The study employed a quantitative research approach through structured
surveys. A sample of 101 respondents was chosen from diverse demographics, including age,
income levels, and geographical locations, to capture a holistic understanding of consumer
attitudes towards credit cards.

This preliminary study, Illuminates important insights into Indian Consumer’s

perception on credit cards .

While nearly all respondents were aware of credit cards, there is a clear need for improved
financial literacy and transparency in credit card offerings. Addressing security concerns and
providing accessible financial education are vital steps to build trust and encourage responsible
credit card usage among consumers. Both financial institutions and consumers can benefit from
these findings. Financial institutions should focus on enhancing customer education,
transparency, and security measures, while consumers should actively seek to educate
themselves about credit card terms and conditions to make informed financial decisions. Further
research with a larger and more diverse sample can provide deeper insights into the evolving
landscape of consumer attitudes towards credit cards.
 CHAPTER 1

INTRODUCTION

1
 INTRODUCTION:

Credit cards were introduced in India during the late 20th century, revolutionizing the way consumers
and businesses handled financial transactions. This introduction marked the beginning of a shift
towards a more cashless and digital economy, aligning with global trends.

Historical Background

1.Early Days
 The concept of credit cards was first introduced to India in the early 1980s.
 Central Bank of India was among the pioneers, launching its credit card in 1981.
 Initially, the adoption was slow due to limited infrastructure, low consumer awareness, and
skepticism towards using credit.

2.Growth and Expansion:

 The 1990s saw increased participation from other banks and financial institutions.
 Foreign banks like Citibank and HSBC played a significant role in promoting credit card
usage.
 By the late 1990s and early 2000s, private sector banks like HDFC Bank, ICICI Bank, and SBI
started aggressively marketing their credit card products.

Factors Driving Adoption

1.Economic Liberalization

 The liberalization of the Indian economy in the early 1990s led to an increase in disposable
income and consumer spending.
 This economic growth created a favorable environment for the adoption of credit cards.

2.Technological Advancements

 Advances in banking technology and the establishment of electronic payment systems

facilitated the use of credit cards.
 The development of secure transaction processing systems and widespread ATM networks
supported this growth.

2
 3.Consumer Awareness and Education
 Banks and financial institutions conducted extensive marketing campaigns to educate
consumers about the benefits of credit cards.
 Increased awareness about credit scores and financial planning also contributed to the
acceptance of credit cards.

4. Partnerships and Collaborations:

 Collaboration between banks and major retail chains, airlines, and e-commerce platforms led
to the introduction of co-branded credit cards.
 These partnerships offered customers added benefits and incentives, further driving
adoption.

Key Developments

1.Regulatory Framework:

 The Reserve Bank of India (RBI) established guidelines to regulate the issuance and use of
credit cards, ensuring consumer protection and financial stability.
 Regulations focused on transparency in terms and conditions, interest rates, and fees.

2.Product Diversification:

 Banks started offering a variety of credit cards tailored to different customer segments,
including rewards cards, travel cards, lifestyle cards, and business cards.
 This diversification addressed the specific needs and preferences of various consumer
groups.

3.Digital Integration:
 The integration of credit cards with online banking and mobile apps made it easier for
customers to manage their accounts, track spending, and make payments.
 Innovations like contactless payments and virtual credit cards enhanced convenience and
security.

4. Security Enhancements:

 With the rise in cyber threats, banks implemented advanced security measures such as EMV
chip technology, two-factor authentication, and OTP (One-Time Password) verification.
 These measures increased consumer confidence in using credit cards for transactions.

3
 Impact on the Economy

1.Boost to Consumer Spending:

 Credit cards provided consumers with the flexibility to make purchases on credit, thereby
boosting overall consumer spending and contributing to economic growth.
 The availability of credit also supported the retail and e-commerce sectors.
2.Financial Inclusion:

 Credit cards played a role in promoting financial inclusion by providing access to credit for a
broader segment of the population.
 Initiatives to increase credit card penetration in rural and semi-urban areas helped bridge the
financial gap.
3.Growth of the Digital Economy:

 Credit cards were instrumental in the growth of the digital economy, facilitating online
shopping and digital transactions.
 The rise of e-commerce and digital payment platforms further integrated credit card usage
into everyday financial activities.

The introduction of credit cards in India marked a significant milestone in the evolution of the
country's financial landscape. Over the years, credit cards have grown from a niche product to a
widely accepted financial tool, driven by economic liberalization, technological advancements, and
proactive efforts by banks and regulators. Today, credit cards are an integral part of the Indian
economy, supporting consumer spending, financial inclusion, and the growth of the digital economy.

KEY MILESTONES:

The journey of credit cards in India has been marked by several significant milestones
that have shaped the industry and consumer behavior. Here are some key milestones in the history of
credit cards in India.

1980s: Introduction of Credit Cards

 1981: First Credit Card Issued:

 Central Bank of India became the first bank in India to introduce a credit card, marking the beginning
of the credit card era in the country.

1990s: Growth and Expansion

 1991: Economic Liberalization:

4
 The liberalization of the Indian economy led to increased disposable incomes and consumer spending,
creating a favorable environment for the adoption of credit cards.

 1994: Entry of Foreign Banks:

 Foreign banks like Citibank and HSBC started offering credit cards in India, introducing innovative
products and services that increased competition and consumer interest.

 1999: Entry of Private Sector Banks:

 HDFC Bank, ICICI Bank, and other private sector banks entered the credit card market, significantly
expanding the customer base and offering a variety of card options.

2000s: Technological Advancements and Regulatory Framework

 2002: Introduction of Co-Branded Cards:

 The collaboration between banks and retail chains, airlines, and other businesses led to the launch of
co-branded credit cards, offering exclusive benefits and rewards.

 2004: Establishment of Credit Information Bureau:

 The Credit Information Bureau (India) Limited (CIBIL) was established, providing credit information
and scores to banks, which improved risk management and consumer credit assessment.

 2008: RBI Guidelines for Credit Cards:

 The Reserve Bank of India (RBI) issued comprehensive guidelines to regulate credit card operations,
focusing on transparency, customer protection, and responsible lending practices.

2010s: Digital Integration and Security Enhancements

 2011: Introduction of EMV Chip Cards:

 Banks started issuing credit cards with EMV chips to enhance security and reduce fraud, replacing the
older magnetic stripe technology.

 2013: Rise of Mobile Banking and Digital Payments:

 The integration of credit cards with mobile banking apps and digital payment platforms made it easier
for customers to manage their accounts and make transactions securely.

 2016: Demonetization and Digital Push:

 The government's demonetization initiative in November 2016 led to a surge in digital transactions,
including credit card usage, as consumers sought alternatives to cash.

2020s: Innovation and Financial Inclusion

 2020: Impact of COVID-19 Pandemic:

 The COVID-19 pandemic accelerated the shift towards contactless payments and digital transactions,
with credit cards playing a crucial role in supporting online shopping and contactless payments.

5
 2021: Introduction of Contactless Payments:
 Banks increasingly adopted contactless payment technology, allowing consumers to make quick and
secure transactions without swiping or inserting their cards.

 2022: Launch of Virtual Credit Cards:

 Virtual credit cards gained popularity, providing a secure and convenient option for online
transactions, further driving the adoption of digital payments.

 2023: Expansion of Credit Card Market:

 The credit card market in India continued to grow, with increased penetration in semi-urban and rural
areas, driven by financial inclusion initiatives and digital literacy programs.

The evolution of credit cards in India has been marked by significant milestones that reflect the
dynamic changes in the country's financial landscape. From their introduction in the early 1980s to the
present day, credit cards have transformed from a niche product to a mainstream financial tool. This
journey has been characterized by technological advancements, regulatory developments, and a
continuous focus on enhancing consumer convenience and security. Today, credit cards play a vital
role in India's digital economy, supporting consumer spending, financial inclusion, and the broader
goal of a cashless society.

Theoretical Background of the study:

The study of credit cards in India encompasses various theoretical frameworks that explain their
adoption, usage, and impact on consumer behavior and the economy. This background delves into the
financial, economic, and psychological theories that underpin the growth and evolution of credit cards
in India.

The theoretical background of credit cards in India integrates multiple frameworks to explain their
adoption, usage, and impact. From the diffusion of innovations to behavioral economics, these theories
provide insights into consumer

6
SCOPE OF THE STUDY:

Study of consumer awareness and perception about CC encompasses various features related
to how individuals perceive and understand credit cards, their features, benefits, and risks. It
examines consumers' knowledge, attitudes, and behaviours regarding credit card usage,
payment habits, and overall financial literacy. Research in this field aims to provide insights to
policymakers, financial institutions, and consumer advocacy groups to enhance consumer
education, improve credit card disclosure practices, and develop regulations that promote
responsible credit card use and protect consumers from predatory practices.

ONE LINE WRITE UP

The competitive dynamics are influenced by these forces, as demonstrated by Saha, S. (2023),
in the case of the Air India acquisition in the aviation industry.
The significance of threshold values in sales performance factors, such as customer
acquisition cost and sales conversion rates, extends beyond mere metrics; they are pivotal
determinants of a company's competitive advantage and its position within the industry (Saha,
2023).

Similarly, organizations with high levels of employee dissatisfaction or inefficient processes

may struggle to innovate or compete effectively, impacting the intensity of rivalry among
competitors (Saha, S., 2023)

Vendor capability, particularly the ability to deliver high-quality products or services, can
significantly impact the power dynamics within the relationship, affecting pricing and trade
terms (Saha, S., & Joshi, K., 2024).

Saha & Kar (2021) propose that the computation of sales performance scores and effective
cross-functional collaboration can deter new entrants and retain bargaining power with
customers in the IT/ITES industry.

The performance of salespeople, influenced by factors such as personality traits, product

knowledge, competitive intelligence, and the utilization of sales force automation, can
significantly affect the bargaining power of buyers and suppliers through their impact on
purchasing decisions and negotiation outcomes (Saha & Kar, 2021).

Cross-functional sales performance variables, such as customer satisfaction and market

responsiveness, play a crucial role in mitigating the threat of substitutes in the IT/ITES sector
(Saha & Kumari, 2019).

A vendor's established capability and experience in Business-to-Business (B2B) transactions

can strengthen a company's competitive position by reducing the bargaining power of buyers,
as clients are more likely to award contracts to trusted vendors with proven track records
(Saha, S., & Joshi, K., 2021).

In a review of "The 22 Immutable Laws of Marketing," Saha, S., et al. emphasize that in
competitive markets, reducing competitive rivalry—a core component of Porter's Five
15
Forces—requires companies to focus on differentiation, unique market positioning, niche
marketing, distinct product attributes, and consistent brand messaging.

Moreover, advancements in technology and cross-functional factors enabling automated sales

processes can lower the bargaining power of suppliers by reducing dependence on traditional
sales personnel (Saha, S., 2024).

The acquisition of New Delhi Television Limited (NDTV) by the Adani Group signifies a
significant competitive change in the Indian media industry, showcasing how large
conglomerates can use corporate takeovers to gain substantial control and potentially
diminish competitive rivalry (Saha, S., et al., 2024).

The merger of PVR and Inox, two leading Indian cinema industry giants, illustrates a
strategic response to the increased competitive pressure from OTT platforms, aiming to
reduce the threat of substitutes and leverage synergies to regain a competitive edge in a post-
COVID landscape (Saha, S., 2024).

The merger between HDFC Bank and HDFC Ltd. creates a stronger banking competitor, with
more cross-selling opportunities, increased mortgage disbursals, and a larger customer base,
potentially raising barriers to entry and lowering buyer bargaining power due to a broader
product and service portfolio (Saha, S., 2024).

REVIEW LITERATURE :

A review of literature is a text written by different scholar to consider the perilous point of
current information including functional finding as theoretical and methodological contribution
to a specific topic review of literature are secondary source and as such, do not state any original
experimental work, also a literature review can be interpreted as a review of an abstract
accomplishment. Most often associated with academic-oriented literature, such as these is a
review of literature usually precedes a research proposal and results section. Its main goals are
to situate the current study within the body of literature and to provide context for the particular
reader.
1. Gupta (2003): According to the legal and regulatory framework for credit cards, there is a
need to simplify the regulation of the credit card industry in India. The law governing the use
of CC is comprehensive and simple in industrialised nations, but in India, it needs to be
changed structurally. Therefore, in direction to defend the interests of cardholders and
promote the industry's growth, it is necessary to investigate the various legislative foundations
of the inferior and Indian versions.
2. Bandyopadhyay (2004): The author of "Credit Card Looks Ace" shed light on a number of
issues, including the detail that major card companies are delivering cards without conducting
thorough background checks. Though it raises the portfolio's non-performing asset (npa)

16
levels generally, just roughly 0.6% of India's consumer spending is made using a credit card.
He said that one way to increase card use would be to mandate card payments for all utility
bills by adding additional electrical draught capture. The government can eliminate the tax on
CC, which serves as a significant deterrent to card users. to reduce default rates. Bank must
set up credit bureau. This allows banks to pick out potential defaulters by deleting the first
sign of default in advance and issuing a red alert.
3. Bhargava (2004): Debit cards are quickly catching up with customers, according to a new
generation of plastic money analysis. The use of debit cards is being fueled by a number of
factors, including their accessibility, the client demographic's aversion to using cash, and zero
interest rates. The study places a strong emphasis on expanding these cards. The bank will
need to upgrade its facilities, continue to concentrate on installing point of sale (pos) systems
in smaller cities and in high-traffic areas for cardholders, and create new marketing
campaigns to inform consumers of the advantages of using plastic instead of cash.
4. Easwar and Kumar (2004): However, when compared to chain, Taiwan, and Malaysia in
terms of domestic conditions, India comes in worst for CC usage. Assets in the study titled
"Credit Card on a Growth Trajectory" indicate that the perception of possessing a credit card
has changed and they are now seen as a practical alternative to carrying cash as well as a way
to access credit for share period.
5. Humphrey (2004): The authors of Replacement of Cash by Card in US Consumer
Payments analyse time series data over the last 25 years. The findings indicate that the share
of cash in consumer payments appears to have decreased from 0.31 in 1974 to 0.20 in 2000,
with checks replacing both cash and cheque in the 1990s.Despite having cash and no
expected period of travel, author feds.
6. Swan (2004): conducted a CC survey. “Credit card; competitive market." It was noted that
the credit card industry would see more competitors. Major firms are using aggressive
marketing tactics and additional value-added services to increase their market share. Due to a
lack of consumer awareness and unobtrusive advertising, some banks provide cardholders
with services and credit support on an international level. It also noted that despite the bank's
efforts, the vast popular of Indians had not yet fully unspoken credit cards.
7. Vorn and Gidwani (1993): Plastic at a premium demonstrates the card types and usage
options. According to research, credit cards are fairly supportive for those who want to use
them to boost their spending power. Different cards offer various packages to entice clients,
such as discounts, insurance coverage, and reward points. According to the author, if all
residents who pay taxes are included, the market for card holders might increase to 7 million.
But because the Indian consumer is still credit-conscious, this valiant effort to upgrade
17
services can only have a limited impact. To achieve this, they must modify their spending
patterns and maintain card activation.so that a piece of plastic can be effectively converted
into a premium card.
8. Chakravorti (2003): Network theory for credit cards as indicated by their spectacular
increase in the quantity and value of transactions over the last 20 years, credit cards offer
advantages to 10 consumers and merchants that are not afforded by other payment
instruments, according to a review of the literature. Recently, credit card network players
have been explored with an emphasis on connecting bilateral transactions. Several
hypothetical models have been established to analyse the things of various CC network
business practises.
9. Costazo Chris (2009): Consumer spending on credit cards plunged due to recession,
consumer responded by slowing down on CC spending and meeting their financial supplies
through debt usage. Prasad lyre, a master card vice president, summarizes “while 2009 was
the of cutting back and 2010 was the year of spending on necessities 2011 Resulted in
financial optimization of funds “by banks providing person financial management tools and
mobile related services to its customer.50% of the house hold expenditure is still meeting
through cash development of mobile technology will cater to better transaction with the use
of credit card between individual and service provider.
10. Huffington Arianna (2009): The CC crisis is likely to hit the US very soon as most people
reach for credit cards to spend for essentials like food, clothing medical the price of which
escalates as a affect the debt rises and it gets harder to retain up to the payments and on the
other end banks hike the interest rates and impose other would penalties which the customers
are unable to wage off resulting in the credit card debt crisis.
11. Ahmed, Amanullah, and Hamid (2009) performed a study to determine why Pakistani
customers are choosing to utilise credit cards over alternative payment methods and the
elements that influence this decision. Consumers with at least one credit card or no credit card
were surveyed for the study, and factors like age, income level, and gender were examined.
Rendering to the study, having a credit card and having a high income are positively
correlated. When choosing a credit card, brand recognition and trust were very important
factors. The study also made policy recommendations, including the creation of a new credit
card model based on Islamic banking principles, re-evaluation of segmentation methods, and
product development based on market data (Ahmed et al., 2009).
12. Pulina (2011): analyzed the factors influencing credit card choice using a multinomial
logit model on a recent portfolio of banking customers in Italy and found that gender, age,
location, type of circuit, card ownership, credit line, and type of expenditure significantly
18
affected consumer credit card choice, with women being more expected to choose a classic
card, men 11 being more likely to hold gold credit cards, and younger customers being further
expected to use revolving credit cards; the study also concluded that Italy's credit market is
conservative and has room for expansion into more sophisticated products, providing
insightful information for credit card portfolio managers to target credit cards more
effectively
13. K Govindarajan, Vijiay and S. Balachandra (2012): Highlights a clear shift in the use of
plastic money among Indians with more Preference give to credit card than debit card. As
most of the outlets \merchants Have started accepting credit cards therefore making it
convenient to make payment at the point of purchase terminal it also states that consumer is
using CC not only as a security measure but as a status symbol causing them to spend more.
14. Lim, Ng, Chin, and Boo (2014): aimed to understand young consumer perceptions of
credit card usage and provide recommendations for responsible consumption. Through 15
qualitative, in-depth interviews, the study found that young clients have shifted from a culture
of saving first and spending later to borrowing first and repaying later. Credit cards were
identified as a key facilitator of this shift, allowing consumers to spend extra than they can
afford. Despite awareness of the potential disadvantages of credit cards, such as overspending
and interest, young consumers still view credit cards as a necessity due to the convenience
and security they provide. Attractive rewards offered by credit card companies were also
found to influence spending behavior. The study provides implications and recommendations
for promoting responsible credit card usage.
15. In Kumudhini's study (2018), the relationship between attitude and buying behavior
among credit card users in Chennai was examined through a survey of 538 credit card users.
The study found a significant impact of attitude on buying behavior, and age, gender, marital
status, employment sector, and income level were influential factors on users' attitudes
towards credit card use. (Kumudhini, 2018) The study concluded that attitude plays a crucial
role in credit card users' buying behavior.
16. Pereira (2019) aimed to investigate the behavior of credit card customers based on their
transactional activity and spending patterns. A logistic model was developed, based on
various sociodemographic, customer profile, and Banco de Portugal variables. Results
showed that clients who lived in Central North and Central regions of Portugal, had Plafond
between 1500 and 9000 euros, were homemaker or student, received cashback, and had a
seniority in the 12 company between 32 and 84 days ago were the best clients for the case
study. It was concluded that specific clients' needs could be appropriately managed by the
company built on the proposed model. Additionally, the study contradicted previous research
19
that unemployed people used credit cards in an unbalanced manner, as the outcomes showed
that unemployed individuals (students) used their CCmore in terms of quantity and amount,
even if their utilization could be unbalanced (Pereira, 2019).
17. Ramlan and Ramesh (2020) conducted a study in Malaysia to explore the association
between consumer spending behavior and credit card incentives. Using SPSS for analysis,
correlation and regression analysis were performed on the data, and the results indicated that
installment plans, good bank reputation, and gift or rewards are related to consumer spending
behaviour (Ramlan & Ramesh, 2020). While the study found a important positive connection
between these factors and consumer spending behavior, there was no significant impact on
consumer behavior spending with an installment plan. The authors concluded that credit card
benefits, such as transaction speed, convenience, security, record-keeping ease, and float, can
entice customers to continue using credit cards.
18. Warsame and Abdalla (2020): did a study to look at the elements affecting academics'
attitudes at the University of Nairobi towards using CC. 236 questionnaires were delivered to
academics at the school of business using Google forms as share of the study's purposive
sample technique (Warsame & Abdalla, 2020). Rendering to the study, the card uses intention
variable had the greatest influence on attitudes towards using CC, followed by perceived
usefulness and informational accessibility. The computed regression equation accounts for
52.5% of the variation in boldness towards using CC, according to the corrected R2,
indicating that the model fits the data well. The study recommends that banks offering credit
cards should consider card use intention as an important factor and provide more precise and
transparent information about interest rates, registration fees, annual renewal fees, and
publish the latest information about credit cards.
19. In Akela's (2020): text, credit cards are examined with an explanation that these cards are
issued by banks or businesses, enabling users to make purchases on credit (Akela, 2020). The
revolving account created by credit card issuers and the line of credit granted to the user are
further explained, detailing how users can borrow money to make payments (Akela, 2020).
The article also provides ancient insights into banking and the evolution of bank services, 13
including the growth of credit cards (Akela, 2020). The study methodology used to explore
credit card usage is identified as exploratory and descriptive, with the results indicating that
credit card users are mainly males aged between 26-45 years, employed in the business sector
(Akela, 2020). The author concludes by emphasizing the necessity of using CC judiciously
and the need for credit card issuers to approach their target customers carefully (Akela, 2020).
20. Zahrani (2021): conducted a study to develop a hypothetical model for consumer
behavioral intention for credit card usage, by combining the Technology Acceptance Model
20
(TAM) with the theory of perceived risk (Zahrani, 2021). The model was validated with data
from 217 bank customers in Saudi Arabia (Zahrani, 2021). The study found that social
impact, perceived helpfulness, professed ease of use, and perceived trust were all important
predictors of apparent risk and apparent security, which, in turn, affected consumer purpose
to use a credit card (Zahrani, 2021). The study adds to the knowledge on consumer behavior
by verifying the effects of perceived risk and apparent security on credit card usage intentions
in Saudi Arabia, which most prior studies had ignored (Zahrani, 2021). This research may
assist banks in developing new customer gaining tactics and retaining their current client base
by focusing on risk and security issues (Zahrani, 2021). The study also provides genuine data
about Saudi Arabia's e-banking services, particularly in the credit card sector, to an academic
research platform (Zahrani, 2021)

OBJECTIVES OF THE STUDY:

1. How age, occupation, annual income, educational qualification, gender, marital status,
would have an influence on the usage of CC.
2. To bring out the main purpose of using the CC, bills is being paid via certain app or site
and facilities are offered by the bank.
3. To identify how often an individual use CC in a week, what’s the main reasons for
using CC, amount of expenditure done by CC and where do they use the most.
4. To analyse how effective impact on consumer awareness and perception of CC.

LIMITATIONS OF THE STUDY:

The sampling will be based on sample random sampling and data will be collected from
those using credit cards.
The more research could not be done due to major time constrains.
Since the amount of CC holders is very large, a sample 101 client has been selected for
the current survey.
As the study is undertaken for academic purpose only, the findings cannot be
generalized to entire study. Credit card holder and non-holders who are included in this
study.

21
Chapter scheme:

Chapter 1 Introduction

Chapter 2 Industry or company profile

Chapter 3 Methodology and data base

Chapter 4 Data Analysis and Interpretation

Chapter 5 Findings, Conclusion and Suggestions

22
 CHAPTER- 2
INDUSTRY/COMPANY
PROFILE

23
 INDUSTRY PROFILE OF INDIAN BANKS

The Indian banking industry is a vital component of the country's financial system, significantly
contributing to economic development. It encompasses a wide range of institutions including public
sector banks, private sector banks, foreign banks, regional rural banks, cooperative banks, and
payment banks. The Reserve Bank of India (RBI) acts as the central regulatory authority overseeing
the functioning of these banks.

TYPES OF BANKS INDIA

1.Public Sector Banks (PSBs):

Majority-owned by the government.

Key players include State Bank of India (SBI), Punjab National Bank (PNB), Bank of
Baroda (BoB), Canara Bank, and Union Bank of India.
 These banks dominate the banking sector with a significant market share in terms of assets
and deposits.

2.Private Sector Banks

 Owned by private entities.

 Major players include HDFC Bank, ICICI Bank, Axis Bank, Kotak Mahindra Bank, and Yes Bank.
 Known for innovation, better customer service, and advanced technology adoption.

3.Regional Rural Banks (RRBs):

 Jointly owned by the central government, state government, and sponsor banks.
 Focus on providing banking services in rural areas.

4.Cooperative Banks:

 Operate on a cooperative basis, providing credit and banking services to their members.
 Includes both urban and rural cooperative banks.

Role of Credit Cards in India

Credit cards have become an integral part of the financial ecosystem in India,
offering numerous benefits to consumers and playing a significant role in the country's
economic development.

Facilitation of Cashless Transactions:

 Credit cards promote a cashless economy, reducing the need for physical cash
handling.
16
  This aligns with the government's push for digital payments and financial inclusion.

Convenience and Accessibility:

 Credit cards provide a convenient means of payment for goods and services both online and
offline.
 They are widely accepted at retail outlets, e-commerce platforms, and service providers.
Credit Facility:
 Credit cards offer a line of credit that allows consumers to make purchases and pay later.
 This helps in managing short-term liquidity needs and improves purchasing power.

Building Credit History:

 Regular and timely repayment of credit card bills helps in building a good credit score.
 A positive credit history is crucial for accessing other financial products like loans and
mortgages.
Rewards and Incentives:

 Credit cards offer various reward programs, including cashback, points, travel miles, and
discounts.
 These incentives encourage spending and customer loyalty.

ABOUT ICICI BANK:

The largest banks in India, ICICI Bank offers both retail and business clients a broad choice of
financial services. With the aim of fostering industrial development in India, this bank was initially
founded in 1955 as the Industrial Credit and Investment Corporation of India (ICICI). Over the
following several decades, ICICI expanded to rank among India's top financial institutions,
offering consumers and corporate clients a comprehensive variety of financial services.

PRODUCT PROFILE:
1. ICICI Lifestyle cards
2. ICICI Travel cards
3. ICICI Fuel cards
4. ICICI Premium cards
5. ICICI Co-branded cards
6. ICICI Secured cards
17
 ABOUT HDFC BANK

HDFC Bank Limited is one of India's leading private sector banks. Established in 1994, it has
grown rapidly to become one of the most prominent financial institutions in the country. The
bank offers a comprehensive suite of financial products and services to individuals, small
businesses, and large corporations. Its offerings include personal banking, business banking,
loans, credit cards, wealth management, and more. HDFC Bank is renowned for its customer
service, technological innovation, and extensive branch and ATM network.

Credit Card Offerings by HDFC Bank

HDFC Bank provides a wide range of credit cards catering to various customer needs and preferences.
These credit cards are categorized based on the benefits they offer, such as rewards, travel, lifestyle,
and more. Here is an overview of the different types of credit cards provided by HDFC Bank

PRODUCT PROFILE

1. Reward credit cards

2. HDFC Regaliacard
3. HDFC Milliennia card
4. Travel credit card
5. HDFC Bank Dinners club Black
6. Lifestyle credit cards
7. HDFC Bank Infinia card
8. HDFC Bank Titanium Edge credit card
9. Shopping credit cards
10. Fuel credit cards

ABOUT SBI BANK

The State Bank of India (SBI) is the largest public sector bank in India, with a vast network of
branches and ATMs across the country and abroad. Established in 1955, SBI has a significant role in
the Indian banking sector, offering a wide range of banking and financial services, including personal
banking, corporate banking, international banking, and treasury operations. Known for its robust
presence in both urban and rural areas, SBI caters to millions of customers with its extensive product
portfolio.

SBI Card, a subsidiary of SBI, offers a variety of credit cards designed to meet the diverse needs of its
customers. These credit cards are categorized based on their features and benefits, such as rewards,
travel, shopping, fuel, lifestyle, and business. Here is an overview of the different types of credit cards
provided by SBI

18
PRODUCTS PROFILE

1. Rewards credit cards

2. Travel credit cards
3. Lifestyle credit cards
4. Shopping creit cards
5. Fuel credit card
6. Business credit cards

MAJOR COMPETITORS

 CITI Credit Card

 AXIS Credit card
 AE Credit Card
 SD Credit Card
 YES, BANK Credit Card
 KOTAK MAHINDRA Credit Card
 IDFC Credit Card
 CANARAcreditcard

19
 SWOT ANALYSIS:

A SWOT analysis (Strengths, Weaknesses, Opportunities, Threats) helps to evaluate the internal and
external factors influencing the credit card industry in India. Here’s a detailed SWOT analysis for
credit cards in the Indian market

Strengths:

1. Convenience and Flexibility:

 Credit cards offer convenience for consumers, allowing for cashless transactions both online
and offline.
 Provides flexibility in payments, with options for deferred payments and EMI (Equated
Monthly Installment) facilities.

2. Reward Programs and Benefits:

 Attractive rewards programs, cashback offers, discounts, and loyalty points incentivize usage.
 Specialized cards cater to diverse needs such as travel, fuel, shopping, and dining.

3. Financial Inclusion:

 Credit cards provide access to credit for individuals without traditional banking relationships,
aiding financial inclusion.
 Helps in building a credit history and improving credit scores for consumers.

4. Technological Integration:

 Advanced security features like EMV chips, OTP (One-Time Password) authentication, and
contactless payments enhance safety and user experience.
 Integration with mobile banking apps and digital wallets for easy management and
transactions.

5. Widespread Acceptance:

 Extensive acceptance of credit cards at merchants, both domestically and internationally.

 Partnerships with major retailers, airlines, and e-commerce platforms expand usage scenarios.

20
 Weaknesses:

1. High-Interest Rates and Fees:

 High-interest rates on outstanding balances and various fees (late payment, annual fees,
over-limit fees) can lead to debt accumulation.
 Complex fee structures may confuse consumers.

2. Over-reliance and Debt Trap:

 Easy access to credit may lead to overspending and financial mismanagement.

 Potential for consumers to fall into a debt trap if not managed responsibly.

3. Limited Penetration in Rural Areas:

 Lower penetration and usage in rural and semi-urban areas due to lack of awareness and
limited financial literacy.
 Infrastructure constraints in remote areas for acceptance and usage.

4. Security and Fraud Risks:

 Vulnerability to fraud, phishing attacks, and data breaches despite advanced security
measures.
 Increasing incidents of cybercrime targeting cardholders.

5. Stringent Approval Processes:

 Strict eligibility criteria and credit checks may exclude lower-income individuals and those
with poor credit histories.
 Lengthy approval processes can deter potential users

Opportunities:

1. Growing Digital Economy:

 Expansion of e-commerce and digital payment ecosystems provides significant growth

opportunities for credit card usage.
 Government initiatives promoting digital transactions and a cashless economy.

2. Emerging Market Segments:

 Untapped potential in rural and semi-urban markets with targeted financial literacy programs
and tailored products.
21
 Growth in the millennial and Gen Z demographics, who are tech-savvy and inclined towards
digital payments.

3. Technological Advancements:

 Innovations like blockchain, AI, and machine learning can enhance security, fraud detection,
and customer experience.
 Development of new payment solutions such as virtual cards, biometric authentication, and
blockchain-based transactions.

4. Partnerships and Collaborations:

 Strategic partnerships with fintech companies, retailers, and service providers can expand the
scope and appeal of credit cards.
 Co-branded cards offering exclusive benefits and rewards.

5. Regulatory Support:

 Positive regulatory environment encouraging digital payments and financial inclusion.

 RBI initiatives to enhance consumer protection, promote transparency, and support
innovative payment solutions

Threats:

1. Regulatory Changes:

 Potential for regulatory changes that may impose restrictions on fees, interest rates, or
operational practices.
 Increased scrutiny and compliance requirements could impact profitability.

2. Economic Instability:

 Economic downturns, inflation, and unemployment can affect consumer spending and
repayment capacity.
 Financial instability may lead to higher default rates and non-performing assets (NPAs).

3. Competition from Alternative Payment Methods:

 Rise of UPI (Unified Payments Interface), mobile wallets, and BNPL (Buy Now, Pay Later)
services as preferred payment methods.
 Competitive pressure from digital payment platforms offering low-cost or no-cost transaction
solutions.

22
4. Cybersecurity Threats:

 Growing sophistication of cyberattacks targeting financial institutions and consumers.

 Data breaches and identity theft incidents can undermine consumer trust.

5. Consumer Behavior Changes:

 Shifts in consumer preferences towards debit cards, prepaid cards, and direct bank transfers.
 Increasing awareness and sensitivity to debt may reduce reliance on credit cards.

23
 CHAPTER- 3
METHODOLOGY AND
DATA BASE

24
STATEMENT OF THE PROBLEM:
The problem statement on consumer awareness and perception about credit cards is a
preliminary study that aims to discover the level of awareness and perception of consumers
regarding credit cards. Credit cards are one of the furthermost popular financial instruments
used by consumers globally. While credit cards offer numerous advantages, they arise with
their personal set of risks and challenges.

This study seeks to understand how consumers perceive credit cards and how aware they are
of the potential risks and benefits associated with using CC. The study aims to gather data on
consumer behaviour, attitudes, and perceptions towards credit cards, and how these reasons
influence their decision-making process when it comes to using credit cards.

This preliminary study aims to inspect the experiences of credit card users and their perceptions
of the benefits and risks related with using credit cards. Credit cards offer several benefits, such
as convenience, security, and rewards programs. However, excessive spending is a common
problem associated with credit card usage, which can lead to high levels of debt, financial
stress, and other negative consequences. The grades of the study will provide insights into how
credit card firms can advance their service and product to meet the needs and expectations of
their customers. It will also help consumers make specified decisions about using CC and
managing their finances effectively.

Sampling Technique and Size Design: The data will be collected through the simple
random sampling method, with the help of questionnaires form 101 people who are using or
not used credit cards. Care will be taken to see that the sample is a true representation of the
population; This technique isconsidered easiest, cheapest and least time consuming. this is the
reason they are chosen as subject on purpose.

25
 CHAPTER 4
ANALYSIS AND
INTERPRETATION

26
4.1 DATAANAYSIS AND INTERPRETATION OF THE QUESTIONS

1. GENDER WISE CLASSIFICATION OF RESPONDENTS

Gender No of responses Percentage

Male 61 60.4
female 40 36.6
Others 0 0
Total 101 100

Table - 4.1.1 Gender wise classification of respondents

Gender

40
Female
Male
61

Graph - 4.1.1 Gender wise classification of respondents

Analysis:
The overhead table reveals that male respondents are 61 and female respondents are 40.

Interpretation:
 From the above chart, we can analyse that 60.4% of the respondents are male and 39.6%
are female and 0% don’t prefer not to say, out of 101 Reponses.
 As per above results the females are giving less importance to the credit card than male.
So, we can interpret that the males are using more than female.

27
 2. AGE WISE CLASSIFICATION OF RESPONDENTS

Age No of responses Percentage

Below 20 1 1.0
21-30 60 59.4
31-40 26 25.7
41-50 9 8.9
Above 50 5 5.0
Total 101 100

Table - 4.1.2 Age wise classification of respondents

Age
5, 5% 1, 1%

9, 9%
21-30
31-40
41-50
26, 26%
60, 59% Above 50
Below 20

Graph - 4.1.2 Age wise classification of respondents

Analysis:
The overhead table discloses the age factor from below 20 to above 50 and total respondents
are 101.

Interpretation:

 From the graphical representation of 101 respondent’s, we can analyse that the
respondents compromised of 59.4% of young adults, 1% of teens and 25.7% of adults
and 8.9% of respondents belonged to the phase group of 31 to 40 and 5% of respondents
belongs to the phase group above 50 respectively.
 The highest number of respondents belonged to the phase group of young adults of 21
to 30 years.

28
3. OCCUPATION WISE CLASSIFICATION OF RESPONDENTS

Occupation No of responses Percentage

Student 31 30.7
Government Employee 16 15.8
Private Employee 38 37.6
Business 8 7.9
Self-Employment 5 5.0
Others 3 3.0
Total 101 100

Table - 4.1.3 Occupation wise classification of respondents

occupation

31 16 Business
Govt Employee
Others
3
Private
Employee
5 Self Employment

38

Graph - 4.1.3 Occupation wise classification of respondents

Analysis:
The above table reveals the occupation of the people responded of 31 student, 16 Govt
employee, 38 private employee, 8 business people, 5 self-employment and 3 other occupations
of all 101 respondents.

Interpretation:

 From the given chart of 101 respondent’s, we can analyse that the respondents
compromised of 30.7% of students, 15.8% of Govt employees, 37.6% of private
employees, 7.9% of business people, 5% of Self-employees and 3% of others
respectively.
 The maximum number of people responded belonged to the private employees compare to
29
 .
other occupations. So, we can interpret that most of the private employees using it.

4. MARITAL STATUS WISE ARRANGEMENT OF RESPONDENTS

Marital Status No of responses Percentage

Married 45 44.6
Unmarried 56 55.4
Total 101 100

Table - 4.1.4 Marital Status wise arrangement of respondents

Marital Status

45, 45% Married

Unmarried
56, 55%

Graph - 4.1.4 Marital Status wise arrangement of respondents

Analysis:

The overhead table reveals that married respondents are 45 and unmarried respondents are 56.

Interpretation:
 From the chart given, we can analyse that 44.6% of the respondents are married and
55.4% are unmarried, out of 101 Reponses.
 As per above results the wedded people are giving less importance to the credit card
than unwedded. So, we can conclude that the unmarried individuals are using more than
married people.

30
 EDUCATIONAL QUALIFICATION WISE ARRANGEMENT OFRESPONDENTS

Educational Qualification No of responses Percentage

Primary 0 0.0
Secondary 3 3.0
Graduate 42 41.6
Post Graduate 44 43.6
Professional Degree 11 10.9
Doctorate Degree 1 1.0
Total 101 100
Table - 4.1.5 Educational qualification wise arrangement of respondents

Educational Qualification
1
3
11
Doctorate degree

42 Graduate
Post Graduate
Professional degree

44 Secondary

Graph - 4.1.5 Educational qualification wise arrangement of respondents

Analysis:
The given table reveals the education qualification of the respondents of 3 secondary, 42
graduate, 44 post graduate, 11 professionals and 1 doctorate of all 101 respondents.

Interpretation:
 From pie chart, we can analyse that the 41.6% of graduates and 43.6% of post graduates
are very high in number respectively, where primary, secondary and doctorates are very
less in number and 10.9% of professional degree people respectively
 The maximum number of respondents belonged to the graduates and post graduates
compare to other qualification. So, we can interpret that most of the graduates using it.

31
6. ANNUAL INCOME WISE ARRANGEMENT OF RESPONDENTS

Annual Income No of responses Percentage

Below 1 lakh 23 22.8
1-3 lakh 12 11.9
3-5 lakh 27 26.7
5-10 lakh 28 27.7
Above 10 lakhs 11 10.9
Total 101 100
Table - 4.1.6 Annual income wise arrangement of respondents

Annual Income

12%
23%
1-3 lakhs
3-5 lakhs

27% 5-10 lakhs

11% Above 10 lakhs
Below 1 lakh

27%

Graph - 4.1.6 Annual income wise arrangement of respondents

Analysis:
The table reveals the yearly income of the respondents from below 1lakh is 23, 1-3lakh 12, 3-
5lakh 27, 5-10lakh 28, and above 10lakhs is 11 respondents.

Interpretation:
From pictorial representation, we can construe that 22.8% of the respondents their annual
income is below 1lakh, 11.9% is having 1-3lakhs, 26.7% is having 3-5lakhs, 27.7% is having
5-10lakhs and 10.9% of the people is only having the income above 10lakhs respectively. From
the above given data, we can easily conclude the annual income from 3-10 lakhs is more
respectively.

32
 7. CREDIT CARD HOLDER WISE ARRANGEMENT OF RESPONDENTS

Credit card Holder No of responses Percentage

Yes 78 77.2
No 23 22.8
Total 101 100

Table - 4.1.7 Credit Card Holder wise arrangement of respondents

Are you a credit card holder

23%

No
Yes

77%

Graph - 4.1.7 Credit Card Holder wise arrangement of respondents

Analysis:
The table reveals that 78 people holding the credit card and rest 23 people are not holding the
credit card.

Interpretation:
 From pie chart, we can analyse that 77.2% of the respondents are CC holders and 22.8%
are not the CC holders.
 As per above results there are a greater number of CC holders there are only rare
numbers of individuals who are not using the credit cards. So, we can conclude that the
maximum people hold credit cards.

33
 8. HOW LONG AN INDIVIDUAL USING CREDIT CARDS

Years No of responses Percentage

Less than 1 year 35 34.7
1-3 years 41 40.6
4-7 years 19 18.8
More than 7 years 6 5.9
Total 101 100

Table - 4.1.8 How long an individual using credit cards

How long have you been using credit card

6%

40%
35%
1-3 years
4-7 years
Less then a year
More then 7 years
19%

Graph- 4.1.8 How long an individual using credit cards

Analysis:
The table reveals that how long an individual is using credit cards from less than a year is 35,
1-3years 41, 4-7years 19, and more than 7 years is 6 respondent.

Interpretation:
From chart pictorial representation, we can understand that 34.7% of the respondents using
credit card less than a year, 40.6% of respondents are using it between 1-3years, 18.8% of
respondents are using between 4-7years, and just 5.9% of people are using it for more than 7
years respectively. From the given data, we can easily arrange that the people who are using
between 1-3years are respectively more. And the alertness of the credit cards is spread more in
the recent times.

34
9. HOW MANY CREDIT CARDS ARE YOU HAVING

Cards No of responses Percentage

One 59 58.4
Two 25 24.8
Three 13 12.9
More than three 4 4.0
Total 101 100
Table - 4.1.9 How many cards are you having

How many credit cards are you having

25

More Then Three

One
Three
13 Two
59

Graph - 4.1.9 How many cards are you having

Analysis:
The table reveals that how many cards does an individual own one card is hold by 59people,
two cards 25people, three cards 13people, and more three card holders are 4 in number.

Interpretation:
From the pic chart representation, we can interpret that 58.4% of the individuals are using one
credit card, 24.8% of respondents are using two credit cards, 12.9% of respondents are using
three credit cards, and just 4.0% of clients are using more than three credit cards respectively.
From the above given data, we can easily conclude that the people who are using only one
credit card is with 58.4%. So, we can easily classify that most of the people are trust worthy
and all the benefits in one single card.

35
10. NAME THE BANK OF CREDIT CARD WHICH YOU ARE USING

Bank Cards No of responses Percentage

HDFC Bank 33 32.7
ICICI Bank 28 27.7
SBI Bank 32 31.7
Canara Bank 9 8.9
Axis Bank 15 14.9
Citi Bank 6 5.9
Kotak Bank 15 14.9
Other 21 20.8

Table - 4.1.10 Name the bank of credit card which you are using

Graph - 4.1.10 Name the bank of credit card which you are using

Interpretation:
Among the highest listed credit card banks the respondents were taken 8 check boxes and the
result shows that out of 101 responders 32.7% of the respondents chose the HDFC bank and
31.7% chose SBI bank as their priority being the highest and 27.7% chose ICICI bank has been
choose as the credit card holders followed by the Canara, Axis, CITI and Kotak banks are being
the least holders. Now that their importance is clear that HDFC and SBI holders are more in
number respectively as those credit card banks gives a greater number of benefits to the
customers.

36
11. HOW DID YOU COME TO KNOW ABOUT THE CREDIT CARD

Reasons No of responses Percentage

Self-Mode 36 35.6
Online Advertisements 19 18.8
Relatives 11 10.9
Bankers Approach 21 20.8
Others 14 13.9
Total 101 100

Table - 4.1.11 How did you come to know about the bank credit card

How did you come to know about credit card

21

36 Bankers approach
Online advertisements
Others
Relatives
19
Self mode

11
14

Graph - 4.1.11 How did you come to know about the bank credit card
Analysis:
The table reveals that how respondents came to knew about the credit cards were 36
respondents from self-mode, 19 Online Ads, 11 relatives, 21 bankers’ approach and 14
respondents from other sources respectively.

Interpretation:
From the chart representation, we can understand that 35.6% of the respondents got to know
about credit cards from self-mode, 18.8% online ads, 10.9% relatives, 20.8% bankers’
approach and 13.9% of the came to know about via other source of modes. From the above
data we can construe that maximum number of the respondents came to know from self-mode
about credit cards respectively.

37
12. DO YOU WANT TO BE A CREDIT CARD HOLDER FOR LIFE LONG

Reasons No of responses Percentage

Yes 54 53.5
No 25 24.8
Maybe 22 21.8
Total 101 100

Table - 4.1.12 Do you want to be a credit card holder for life long

Do you want to be a credit card holder for life long

22

54 Yes
No
25
Maybe

Graph - 4.1.12 Do you want to be a credit card holder for life long

Analysis:
The table reveals that the respondents want to be a CC holder for their life time. Here 52
respondents say yes 25 respondents say no and remaining 22 respondents say maybe
respectively.

Interpretation:
From the pictorial representation, we can understand that 53.5% of the people are willing to be
a CC holder for life time and 24.8% are in a dilemma they are not willing to hold it and only
21.8% of the individuals are in-between they might keep it are not and this could be due to
many reasons based on the card which they are holding and benefits they get out of it. So, we
can infer most of the people are willing to hold the credit card for their lifetime.

38
13. WHY DO YOU PREFER THIS BANK CREDIT CARD

Reasons No of responses Percentage

Low interest rate 26 25.7
More benefits to customer 38 37.6
More facilities and services are provided 47 46.5
Easy to handle 31 30.7
Safety 40 39.6

Table - 4.1.13 Why do you prefer this bank credit card

Graph - 4.1.13 Why do you prefer this bank credit card

Interpretation:
Among the highest reasons listed why do you prefer a particular bank credit card the
respondents were specified 5 check boxes and the outcome shows that out of 101 responders
are 25.7% of the respondents chose the low interest rates, where 37.6% chose more benefits to
customer, 46.5% chose more facilities and services are being provided, 30.7% chose easy to
handle and 39.6% chose as safety. Now that their importance is clear that each individual who
is using credit cards is because of the banks provides more facilities and safety during the
emergency situations so most of the people prefer particular credit cards.

39
14. THE USAGE OF CREDIT CARD IS MORE IMPORTANT

Reasons No of responses Percentage

Strongly Disagree 9 8.9
Disagree 10 9.9
Neutral 26 25.7
Agree 18 17.8
Strongly Agree 38 37.6
Total 101 100

Table - 4.1.14 The usage of credit card is more important

The usage of credit card is more

9%
18%

Agree
Disagree
10%
Neutral
37% Strongly agree
Strongly

26%

Graph - 4.1.14 The usage of credit card is more important

Analysis:
The above table reveal that how the usage of CC is more important. Here 38 respondents
strongly agree, 18 agree, 26 neutral, 10 disagree and 9 respondents strongly disagree
respectively.

Interpretation:
From the chart, we can understand that 37.6% of the defendants strongly agree, were 17.8%
they just agree, 25.7 of them are natural in nature, 9.9% of them disagree, and 8.9% of the
defendants strongly disagree. Due to various reasons each and every person find both
advantages and disadvantages. So, we can infer that most of the people strongly agree for that
the usage of CC is more important.

40
15. DOES CREDIT CARD ISSUED BY YOUR BANK GIVES MORE SECURITY

Reasons No of responses Percentage

Yes 74 73.3
No 11 10.9
Maybe 16 15.8
Total 101 100

Table - 4.1.15 Does credit card issued by your bank gives more security

Does CC issued by your bank gives more security

16%

11% Yes
No
Maybe

73%

Graph - 4.1.15 Does CC issued by your bank gives more security

Analysis:
The table reveals that the CC issued by your bank gives more security. Here 74 respondents
say yes 11 respondents say no and remaining 16 respondents say maybe respectively.

Interpretation:
From the chart representation, we can understand that 73.3% of the individuals say yes that
credit card of their bank gives more security, 10.9% of the individuals say no where they have
a bad experience in the security issues, 15.8% of the respondents says maybe based on their
personal experience sometimes it might be yes or no. So, we can interpret that bank issue credit
cards with more security respectively founded on the results from the respondents.

41
16. DOES THE CUSTOMER CARE PERSONALLY RESPOND YOU AT ALL TIME

Reasons No of responses Percentage

Yes 73 72.3
No 10 9.9
Maybe 18 17.8
Total 101 100

Table - 4.1.16 Does the customer care personally respond you at all times

Does the customer care personally respond you at all times

18

Yes
10
No
Maybe

73

Graph - 4.1.16 Does the customer care personally respond you at all times
Analysis:
The table reveals that the client care personally responds you at all the time. Here 73
respondents say yes 10 respondents say no and remaining 18 respondents say maybe
respectively.

Interpretation:
From the given chart representation, we can understand that 72.3% of the individuals say yes
that client care personally responds at all the time, 9.9% of the individuals say no, 17.8% of
the respondents says maybe based on their office timings they might respond on off timing
they might not respond. So, we can infer that bank client care personally respond to their clints
at extreme number of the time respectively.

42
17. IS YOUR BANK CREDIT CARDS ARE ACCEPTED TO PAY FOR PERSONAL
EXPENSES

Reasons No of responses Percentage

Yes 88 87.1
No 13 12.9
Total 101 100

Table - 4.1.17 Is your bank credit cards are accepted to pay for personal expenses

Is your bank CC are accepted to pay for personal expenses

13%

Yes
No

87%

Graph - 4.1.17 Is your bank credit cards are accepted to pay for personal expenses

Analysis:
The table reveals that 88 people use the CC to pay for their individual expenses and rest 13
people they do not use for any of their individual purpose.

Interpretation:
 From the above pie chart, we can analyse that 87.1% of the respondent’s custom the
CC to pay for their individual expenses and 12.9% they do not use for any of their
personal purpose.
 As per above results there are a greater number of CC holders practice their bank CC
for their individual purpose only few numbers of people who aren’t using the CC for
personal use. So, we can infer that the maximum people hold CC for their individual
expenses.

43
18. HOW DO YOU PAY THE BILLS OF CREDIT CARD

Platform No of responses Percentage

Phone Pay 28 27.7
Google Pay 13 12.9
Paytm 19 18.8
Cred 18 17.8
On Official Bank App or Site 23 22.8
Total 101 100

Table - 4.1.18 How do you pay the bills of credit card

How do you pay the bills of CC

18
28
Cred
Google Pay
13 On Official Bank Application or Site
Paytm
Phone Pay
19
23

Graph - 4.1.18 How do you pay the bills of credit card

Analysis:
The table reveals that how respondents will pay the CC bills. Here 28 respondents pay via
Phone pay, 13 Google pay, 19 Paytm, 18 Cred and 23 respondents from official bank
application or sites respectively.

Interpretation:
From the pie chart representation, we can understand that 27.7% of the respondent’s pay bills
of the CC via phone pay, 12.9% Google Pay, 18.8% Paytm, 17.8% via Cred platform and
22.8% of the them pay via official bank applications or site. From the following given data,
we can easily infer that most of the people pay their CC bills via phone pay as it is the one of
the most trusted platform or application to pay the bills of the credit card. And all other
platforms are preferred slightly less associated to phone pay respectivel
44
 19. WILL YOU CHANGE IF THE ADVANCE FACILITIES ARE OFFERED BY
OTHER BANK

Reasons No of responses Percentage

Yes 60 59.4
No 17 16.8
Maybe 24 23.8
Total 101 100

Table - 4.1.19 Will you change if the advance facilities are offered by another bank

Will you change if the advance faciities are offered by other bank

24

Yes
No
Maybe
60
17

Graph - 4.1.19 Will you change if the advance facilities are offered by another bank
Analysis:
The table reveals that the respondents change if the advance facilities are offered by another
bank. Here 60 respondents say yes 17 respondents say no and remaining 24 respondents say
maybe respectively.

Interpretation:
From the given chart representation, we can understand that 59.4% of the individuals say yes
that they change to another bank if they provide more facilities then their present bank credit
card, 16.8% of the individuals say no because they are very loyal to the bank credit cards what
the facilities are being provided from their present bank, 23.8% of the respondents says maybe
based on their personal experience They might change to other banks or they might stay with
the same bank. So, we can infer that most of the respondents change to another bank if that
particular bank provides more facilities than the present credit card bank.

45
20. HOW OFTEN DO YOU USE CREDIT CARD IN A WEEK

Usage No of responses Percentage

Once 51 50.5
Twice 30 29.7
Thrice 14 13.9
More than 4 times 6 5.9
Total 101 100

Table - 4.1.20 How often do you use credit card in a week

How often do you use credit card in a week

6%

30%
More then 4 times
Once
Thrice
50% Twice
14%

Graph - 4.1.20 How often do you use credit card in a week

Analysis:
The table reveals that the how often the defendants use the credit cards in a week. Here 51
respondents say once, 30 twice, 14 Thrice and 6 Defendants say that they use more than four
times in a week respectively.

Interpretation:
From the given chart representation, we can understand that 50.5% of the individuals use their
credit card once in a week, 29.7% of clients use twice in a week, 13.9% of clients use thrice in
a week, 5.9% Of clients use more than four times in a week. We can conclude that most of the
individuals they use their credit card only once in a week for their emergency usage
respectively.

46
21. THE REASONS FOR USING CREDIT CARD

Reasons No of responses Percentage

Avoidance of risk 15 14.9
Convenience 29 28.7
Immediate Payment 32 31.7
Benefits 22 21.8
Cash withdrawal 3 3.0
Total 101 100

Table - 4.1.21 The reasons for using credit card

The reasons for using credit card

15
Avoidance of risk
32
Benefits

22 Cash withdrawal
Convenience
Immediate payments
29 3

Graph - 4.1.21 The reasons for using credit card

Analysis:
The table reveals that the reasons for using the CC. Here 15 respondents say to avoidance of
the risk, 29 convenience, 32 immediate payment, 22 benefits and only 3 of the defendants say
cash withdrawal respectively.

Interpretation:
From the given pie chart representation, we can interpret that 14.9% of the defendants use
credit card for avoidance of risk. 28.7% use for convenience, 31.7% use for Immediate
payments, 21.8% for benefits and only 3.0% of defendants use it for cash withdrawals. From
the following given data, we can easily infer that most of the defendants use CC for their
immediate payments as it is very convenient at all the situations for the respondents to use it
respectively.

47
22. MONTHLY AMOUNT OF EXPENDITURE DONE BY CREDIT CARD

Expenditure No of responses Percentage

Less than 10,000 33 32.7
10,000 – 30,000 35 34.7
30,000 – 50,000 24 23.8
More then 50,000 9 8.9
Total 101 100

Table - 4.1.22 Monthly amount of expenditure done by credit card

Monthly amount of expenditure done by credit card

9%

34% 10,000 - 30,000

30,000 - 50,000
33%
Less then 10,000
More then 50,000

24%

Graph - 4.1.22 Monthly amount of expenditure done by credit card

Analysis:
The above table reveals that monthly expenditure done by using credit card. Here 33 defendants
spend less than 10,000, 35 defendant’s payouts between (10,000-30,000), 24 defendants’
payout between (30,000-50,000), and only 9 defendants’ payout more than 50,000 in a month
respectively.

Interpretation:

From the given histogram representation, we can interpret that 32.7% of respondent’s Monthly
spending is less than 10,000, 34.7% of respondent’s monthly expense is in between 10,000 to
30,000, 23.8% of respondent’s monthly spending is in between 30,000 to 50,000 and only 8.9%
of respondent’s monthly expenditure done by using credit card is more than 50,000. And here
we can obviously infer that most of the respondent’s monthly expenditure done by using CC is
in between 10,000 to 20,000 most of them use it frequently.
48
23. WHERE DO YOU USE CREDIT CARD OFTEN

Usage No of responses Percentage

Fuel Station 62 61.4
Online Shopping 66 65.3
Monthly Bills 54 53.5
Hotels 52 51.5
Restaurants 41 40.6
Charitable Donations 7 6.9
Airplane Tickets 11 10.9
Others 23 22.8

Table - 4.1.23 Where do you use credit card often

Graph - 4.1.23 Where do you use credit card often

Interpretation:
Among the top reasons where do respondents use their CC often the people were assumed 8
check boxes and the outcome shows that out of 101 responders are 61.4% use credit cards in
fuel stations, 65.3% in online shopping, 53.5% in monthly bills, 51.5% in hotels, 40.6% in
restaurants and 6.9% at charitable donations, 10.9% is airplane tickets and rest 22.8% in other
sources. Now that their importance is clear that each individual who is using CC more in online
spending and fuel station respectively and compared to these, they use bit less and monthly
bills and hotels. So, we can infer that most of them use the CC for their online shopping purpose
respectively.

49
24. HOW WOULD YOU RATE YOUR BANK CREDIT CARD
(FROM THE SCALE OF 1-5) 1 BEING THE LEAST AND 5 BEING THE
HIGHEST

Rate No of responses Percentage

1 12 11.9
2 7 6.9
3 14 13.9
4 23 22.8
5 45 44.6
Total 101 100

Table - 4.1.24 How would you rate your bank credit card

Graph - 4.1.24 How would you rate your bank credit card

Analysis:
From the table above, it is given that out of the 101 respondents, a significant portion 44.6%
that are gratified with the highest quality with 5scale of CC amenities providing by the bank.
An additional 22.8% gave 4scale rating, while 13.9% gave 3scale, 6.9% gave 2scale and 11.9%
gave 1scale they were least satisfied using of credit card.

50
Interpretation:

From the above chart, the majority of defendants 67% expressed positive towards the credit
cards usage. This indicates that a significant portion of the defendants are gratified with the
quality of CC being provided. However, the least rating of the credit card suggests that here is
room for improvement to meet the expectations of customers. Overall, CC as favourable
satisfaction rating among the surveyed individuals.

51
 HYPOTHESIS TESTING:
Null Hypothesis (H0): There is no significant relationship between the reasons and ranking in
usage of CC

Alternative Hypothesis (H1): There is significant relationship between the reasons and
ranking in usage of CC

CORRELATION ANALYSIS:

Correlation Reasons Rankings

Reasons 1
Rankings -0.81168129 1

The correlation analysis between reasons and ranking is -0.081168. This shows negative
correlation, the two variables shift in opposite direction.

REGRESSION ANALYSIS:

Regression Statistics
Multiple R 0.811681289
R Square 0.658826515
Adjusted R Square 0.54510202
Standard Error 10.13264398
Observations 5

Lower Upper
Coefficients Standard Error t Stat P-value Lower 95% Upper 95% 95.0% 95.0%

Intercept 41.34524687 9.885077 4.182592 0.024904 9.886519475 72.80397 9.886519 72.80397

X Variable -1.046794399 0.434913 -2.4069 0.095282 -2.430883183 0.337294 -2.43088 0.337294

The regression analysis, from the above table the value of R is 0.81168 high positive correlation. R
square is 0.65882 in value. The p value is 0.024904 which is lesser than 0.05, suggesting that the
variable is statistically significant. This indicates that the reasons and ratings is statistically
significant.

52
ANOVA:

df SS MS F Significance F
Regression 1 594.7886 594.7886 5.79318 0.095281613
Residual 3 308.0114 102.6705
Total 4 902.8

RESIDUAL OUTPUT:

Observation Predicted RANKINGS Residuals

1 25.64333088 -13.6433
2 10.98820929 -3.98821
3 7.847826087 6.152174
4 18.31577008 4.68423
5 38.20486367 6.795136

REASONS Residual Plot

10

10 15 20 25 30 35
-5

-10

-15
REASONS

53
PROBABILITY OUTPUT:
Percentile RANKINGS
10 7
30 12
50 14
70 23
90 45

Normal Probability Plot

50

40

30

20

10

10 20 30 40 50 60 70 80 90 100
Sample Percentile

54
 CHAPTER 5
FINDINGS, CONCLUSION
AND SUGGESTIONS

55
FINDINGS:
1. 60.4 percentage of the reporter are males.
2. 59.4 percentage of the reporter are aged between 21 to 30 years.
3. Majority of the reporter who own credit cards whose annual revenue is between 5-10
lakhs as well as 3-5 lakhs.
4. Majority of reporter prefer credit card of HDFC and SBI banks.
5. 55.4% of the credit cards being used by unmarried people.
6. 37.6% of respondent’s occupation is private employee.
7. 43.6% of the CC were being used by the postgraduates.
8. Some of the reporters have been using the credit card for the period of 1-3 years.
9. 58.4% Off reporter were using only one credit card.
10. Maximum of the reporter came to know about the credit cards from self-mode.
11. More number of the reporter want to be credit card holder for their lifetime.
12. 46.5% Respondents prefer their bank credit card for providing more facilities and
services.
13. Majority of the reporter agree for the usage of CC is more important.
14. 73.3% of the credit card distributed by the banks gives them more security to the
respondents.
15. We find that 72.3% of banks provide customer care personally for the respondents at
all the time.
16. 87.1% of bank credit cards are accepted to pay for personal expenses.
17. Most of the people pay their credit card bills via phone pay.
18. 59.4% reporter will change their decision if the advanced facilities are being provided
or offered by another bank.
19. 50.5% respondents will often use their CC once in a week.
20. Majority of the reporter the main reason for using their CC is for their immediate
payments.
21. 34.7% of respondents their monthly expenditure is done through the CC is in between
10,000 to 30,000.

56
22. More of the respondents they use their CC often in fuel stations, online shopping as
well as their monthly bills.
23. Given that to the personal experience majority of the reporter have been rated 5 scale
for their bank credit cards.

57
SUGGESTIONS:
 Better customer support should be provided for their customers for the usage of CC for
their lifetime.
 Provide more and advanced facilities to their customers to keep them as loyal where
they don’t change to any other bank.
 Strengthen credit card security by incorporating advanced technology such as chip
enable cards biometric authentication and real time transaction alerts.
 Enhance the credit card mobile application and online banking platform to provide
customers with a seamless and user-friendly experience and allow them to manage their
account transactions and set spending limit conveniently through these channels.
 Develop educational resources articles and tools to enhance monetary knowledge
among CC users educate customers are more likely to use credit responsibly and
maximize the benefit of their credit card.
 If feasible eliminate foreign transaction fees on CC especially for the customers who
travel internationally frequently this suggestion can be highly attractive to globetrotting
customers.
 Ensure that CC terms and conditions are written in clear, simple language, making it
easy for customers to understand fees interest rates grace. Rewards avoid hidden
charges and complex causes that can confuse customers.
 Offer customizable reward program that allow customers to choose rewards that align
with their preference and lifestyle.
 Consider reducing annual fees late payment charges and allowing interest rate to attract
andretaincustomers

58
CONCLUSION:

The primary goal of the study was to determine the nature, awareness, and perception of
CC in urban areas. The CC holders of different banks served as the basis for this
investigation.
The majority of respondents who have credit cards come from SBI and HDFC banks.
Customers always select the banks that offer CC holders superior security, superior
services, and cutting-edge amenities.
This pilot study lays the groundwork for future investigations and focused interventions
aimed at raising consumer awareness, advancing financial literacy, and strengthening
credit card products. Financial institutions can develop credit card solutions that more
closely match the needs and preferences of their customers by addressing consumer
concerns and bridging the information gap. Maintaining initiatives to promote ethical
credit card use and putting customer pleasure first can help create a more

59