“A STUDY ON CREDIT CARDS”.

A Project Report Submitted in partial fulfilment of the

requirements for the award of the degree.
OF
BACHELOR OF BUSINESS ADMISTRATION
Submitted
GUJJARI HEMANTH KUMAR
105-320-684-023
Submitted to

Department of management studies

Osmania University
Under the Guidance of
G. KAVITA
Assistant Professor
Department of Commerce

A.V. College of Arts, Science and Commerce.

(Affiliated to Osmania University)
Domalguda, Hyderabad- 500029
(2020-2023)
 CERTIFICATE

This is to certify that the project work titled “A STUDY ON CREDIT

CARDS” has been submitted by GUJJARI HEMANTH KUMAR
105-320-684-023 Student of final year BBA to Osmania university in
a partial fulfilment of the requirements for the award of the under
graduate degree in BACHELOR OF BUSINESS ADMINISTRATION
from A V College of Arts, Science & Commerce, Domalguda,
Hyderabad for the academic year 2020-2023.

HEAD OF THE
DEPARTMENT
 DECLARATION

I hereby declare that this project report titled “A STUDY ON

CREDIT CARDS” submitted to the department of commerce, O.U,
Hyderabad, is a bonafide work undertaken by me and it is not
submitted to any other University or Institution for the award of any

degree diploma /certificate or published any time before.

GUJJARI HEMANTH KUMAR

105-320-684-023

CERTIFICATION

This is to certify that the Project Report titled “ A STUDY ON

CREDIT CARDS” is submitted in a partial fulfilment for the
award of Bachelor of Business Administration to Department
of commerce, O. U, Hyderabad, was carried out by GUJJARI
HEMANTH KUMAR Under my guidance. This has not
submitted to any other university or institution for the award of
any degree \Diploma\certificate.

Name of the Guide

G. KAVITA
Assistant Professor of Commerce
Department of Commerce
A.V college of Arts, Science & Commerce
SIGNATURE OF THE GUIDE

INDEX

CHAPTER NO PARTICULARS PAGE NO

1 INTRODUCTION
2 REVIEW OF LITERATURE

3 RESEARCH METHOLOGY
 4 THEORATICAL FRAMEWORK

5 COMPANY PROFILE
6 RESEARCH DATA ANALYSIS
INTERPRETATION
7 RESEARCH FINDING AND
CONCLUSIONS
8 SUGGESTIONS AND
RECOMMENDATIONS
9 BIBLIOGRAPHY

10 ANNEXURE

1.INTRODUCTION
• Introduction
• Need for the study
• Objectives
• Hypothesis
• Scope of the Study
• Limitations of the Study

2.REVIEW OF LITERATURE
• 10 TO 15 Case studies Highlighting objectives and
findings.
3.RESEARCH METHODOLOGY
• Sample design
• Source of data: primary data, secondary data
 • Sample size
• Data analysis tools and techniques
4.THEORATICAL FRAMEWORK
• Background of the Topic (past, present, future)
5.COMPANY PROFILE
• Vision
• Mission
• Privacy policies
• Products & Services
• Organizational Structure
6. RESEARCH DATA ANALYSIS
INTERPRETATION
• Formula
• Table
• Interpretation
• Graph
7. RESEARCH FINDING AND CONCLUSIONS
8. SUGGESTIONS AND RECOMMENDATIONS
9. BIBLIOGRAPHY
• 25 references (Textbooks and websites)
10.ANNEXURE
 ABSTRACT

Punyashlok Ahilyadevi Holkar

Solapur University
CHAPTER-I
Punyashlok Ahilyadevi Holkar
Solapur University

CHAPTER-I
CHAPTER-1
 CREDIT CARDS
A credit card is a small plastic card issued to users as a system of
payment. It allows its holder to buy goods and services based on the
holder’s promise to pay for these goods and services. The issuer of the
card creates a revolving account and grants a line of credit to the
consumer ( or the user ) from which the user can borrow money for
payment to a merchant or as a cash advance to the user

INTRODUCTION:
Origin of Credit Cards:
On February 28, 1950 – A
Diners club card, the first
multiuse credit card
was issued. This marked
the beginning of the era of
plastic money. Diner's card
was launched in the Indian
market in 1960. The
Central Bank of India was
the
first bank in the country
to introduce credit card
system in August 1980,
followed by several other
banks. In India, both
foreign and Indian banks
ar
Punyashlok Ahilyadevi Holkar
Solapur University
INTRODUCTION:
Origin of Credit Cards:
On February 28, 1950 – A
Diners club card, the first
multiuse credit card
was issued. This marked
the beginning of the era of
plastic money. Diner's card
was launched in the Indian
market in 1960. The
Central Bank of India was
the
first bank in the country
to introduce credit card
system in August 1980,
followed by several other
banks. In India, both
foreign and Indian banks
are
doing credit card business
INTRODUCTION:
Origin of Credit Cards:
On February 28, 1950 – A Diners club card, the first multiuse credit
card was issued. This marked the beginning of the era of plastic
money .Diner’s card was launched in the Indian market in 1960. The
Central Bank of India was the first bank in the country to introduce
credit card system in August 1980, followed by several other banks. In
India, both foreign and Indian banks are doing credit card business.
The foreign banks have a
dominant share due to
various reasons like
having been in the field for
decades, sound operational
and financial strength,
strong brand
reorganization etc
The foreign banks have a dominant share due to various reasons like
having been in the field for decades, sound operational and financial
strength, strong brand reorganization etc. Later, with the aggressive
entry of SBI, ICICI, and HDFC Banks the rules of the game
changed. Among the banks issuing credit cards, the esteemed and well
published cards are Citibank Diner's Club Card, Citibank Visa Card
and Credit Cards, Bank of Baroda's Master Cards, the SBI Credit
Cards, Bank of India's India Card, Canara Bank's Can Card and ICICI
Bank's ICICI Card. These cards are positioned in a manner which
gives an impression that the cards can be acquired by people from not
only the upper class but also the middle income categories. The new
private sector banks like ICICI and HDFC have adopted a strategy of
reaching lower down the income strata by lowering down their

eligibility norms.

Curr
ent Trends in Credit Card Industry

There is now a flood of Indian banks offering credit cards to the

potential customers. Multinational banks operating in India have
also joined the bandwagon with high voltage advertising and
seemingly competitive reward programmes for loyal credit card users.
Banks income from credit cards can be divided mainly into four
components namely annual fee, interchange charge, revolving fee
(interest charged for revolving credit) and other fees. Indian credit card
market is growing at almost 30 to 40 per cent annually and the number
of credit cards in circulation is twenty seven and half million as
reported by credit card
 SCOPE OF THE SUDY

The present study focuses on the perception of card holders

towards credit cards. The study was designed to gain a
better understanding of the factors influencing possession
of credit cards and card holders‟ satisfaction. The study
also analyses the extent of utilization of credit cards by card
holders and the level of awareness of bank customers not
having credit cards about such card
Cr
edit cards have changed the way people look at money. Gone
are the days when only the rich sported them at limited
counters in select cities. Today, they are a way of life for the
middle class too, even in smaller locations across the country.
However, this boom has brought in a lot of complications
like credit card fraud, payment defaulting, unsolicited card,
uncontrolled spending etc
R
apid credit card growth has increased transaction
efficiency. Till recently, the Indian consumer was using
the credit card during the crunch season, but things have
changed in the recent past with the consumers using it for as
small a sum as Rs.100 to over one lakh rupees. The most
common feature among the credit card holders is that they
carry forward their payment. Postponing payments
multiplies bills that too at a whopping rate of 50 to 60 percent
per year, pushing the card holders into a debt trap.

SIGNIFICANCE 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 choose to pay off your
purchase in equated monthly instalments, 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
Flexible credit-

Credit cards come with an interest-free period, which is a period of

time during which your outstanding credit is not charged interest.
Ranging between 45-60 days, you can avail free, short-term credit if
you pay off the entire balance due by your credit card bill payment
date. Thus, you can benefit from a credit advance without having to
pay the charges associated with having an outstanding balance on your
credit card.
Record of expenses-

A credit card records each purchase made through the card, with a
detailed list sent with your monthly credit card statement. This can be
used to determine and track your spending and purchases, which could
be useful when chalking out a budget or for tax purposes. Lenders also
provide instant alerts each time you swipe your card, detailing the
amount of credit still available as well as the current outstanding on
your card.

Credit cards offer additional protection in the form of

insurance for card purchases that might be lost, damaged or
stolen. The credit card statement can be used to vouch for the
veracity of a claim, if you wish to file one
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 tothis, you can also choose to pay off your
purchase in equated monthly instalments,ensuring you aren’t paying a
lump sum for it and denting your bank balance. Payingthrough EMI is
cheaper than taking out a personal loan to pay for a purchase, such asa

On
television or an expensive refrigerator

February 28, 1950 – A

Diners club card, the first
multiuse credit card
was issued. This marked
the beginning of the era of
plastic money. Diner's card
was launched in the Indian
market in 1960. The
Central Bank of India was
the
first bank in the country
to introduce credit card
system in August 1980,
followed by several other
banks. In India, both
foreign and Indian banks
are
doing credit card business
On February 28, 1950 – A
Diners club card, the first
multiuse credit card
was issued. This marked
the beginning of the era of
plastic money. Diner's card
was launched in the Indian
market in 1960. The
Central Bank of India was
the
first bank in the country
to introduce credit card
system in August 1980,
followed by several other
banks. In India, both
foreign and Indian banks
are
doing credit card business
The present study focuses on the perception of card holders towards
credit cards. The study was designed to gain a better
understanding of the factors influencing possession of credit cards
and card holders‟ satisfaction .The study also analyses the extent of
utilization of credit cards by card holders and the level of awareness of
bank customers not having credit cards about such card