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The concerned regulatory bodies in India are staffed with people from a different middle class. A class where living simply and being debt free are the basic te

The concerned regulatory bodies in India are staffed with people from a different middle class. A class where living simply and being debt free are the basic tenets of life. This class is from small towns and villages of India who view a Government job as a King's prize. India has such a low credit card ratio due to the large number of regulations .It is a cultural thing, yes, but the rules are created by a different set of people for another. Also, Credit Card implies independence and privacy. If you need a loan in India, almost always, parents will come through. Most MNC Credit Houses don't get that India already has a Credit source for small amounts of money in the form of entrenched family system. Home loans and Car loans on the other hand are a different story. And since, Credit Cards are primarily used for low spending, I don't see them growing exponentially for at-least two generations(i.e about 50-60 years). That's how long I think the family system is going to survive.

npguy 14y ago
Very important points - all of them very valid. Except maybe this: " I don't see them growing exponentially for at-least two generations(i.e about 50-60 years)" - I would say, there are so many variables that decide this. For example, taking huge housing loans was something unimaginable few years back in India. I guess my point is this: if we think it will take 60 years, it will probably take 6. or less than that.
- realrocker 14y ago
  Let me explain that more. Based on some projections(http://articles.economictimes.indiatimes.com/2011-11-12/news/30391268_1_largest-economy-demographic-dividend-indian-economy http://articles.economictimes.indiatimes.com/2011-11-12/news...) India will have spending power matching present best. My hypothesis is that as there is more liquidity to go around, families won't need the economic pressure to stay nuclear close. This would lead to break down in credit discipline and thus allowing the emergence of credit cards. Right now and for two generations this does not feasible(i.e by and after 2050). Well, based on one of the many variables atleast, though a major variable.
  - realrocker 14y ago
    So in my opinion, if someone does want to track some finance stats in India, they should primarily target for Life Insurances, Mutual funds and other savings instruments. There is also an impending FDI(Foreign Direct Investment) in Life Insurance. That thing is ready to explode in the next 3-5 years.

npguy 14y ago

Very important points - all of them very valid. Except maybe this: " I don't see them growing exponentially for at-least two generations(i.e about 50-60 years)" - I would say, there are so many variables that decide this. For example, taking huge housing loans was something unimaginable few years back in India. I guess my point is this: if we think it will take 60 years, it will probably take 6. or less than that.

realrocker 14y ago
Let me explain that more. Based on some projections(http://articles.economictimes.indiatimes.com/2011-11-12/news/30391268_1_largest-economy-demographic-dividend-indian-economy http://articles.economictimes.indiatimes.com/2011-11-12/news...) India will have spending power matching present best. My hypothesis is that as there is more liquidity to go around, families won't need the economic pressure to stay nuclear close. This would lead to break down in credit discipline and thus allowing the emergence of credit cards. Right now and for two generations this does not feasible(i.e by and after 2050). Well, based on one of the many variables atleast, though a major variable.
- realrocker 14y ago
  So in my opinion, if someone does want to track some finance stats in India, they should primarily target for Life Insurances, Mutual funds and other savings instruments. There is also an impending FDI(Foreign Direct Investment) in Life Insurance. That thing is ready to explode in the next 3-5 years.