Credit Card Delinquency Rates in India 2025: State wise Analysis

Rank	Region Name	Values (%)
1	Maharashtra	2.8
2	Delhi	2.6
3	Karnataka	2.5
4	Telangana	2.4
5	Gujarat	2.3
6	Tamil Nadu	2.2
7	Uttar Pradesh	2.1
8	Haryana	2.0
9	West Bengal	1.9
10	Rajasthan	1.8
11	Bihar	1.7
12	Andhra Pradesh	1.6
13	Madhya Pradesh	1.5
14	Punjab	1.4
15	Kerala	1.3
16	Odisha	1.2
17	Chhattisgarh	1.1
18	Jharkhand	1.0
19	Assam	0.9
20	Uttarakhand	0.8
21	Himachal Pradesh	0.7
22	Goa	0.6
23	Chandigarh	0.5
24	Puducherry	0.4
25	Jammu and Kashmir	0.3
26	Tripura	0.2
27	Manipur	0.2
28	Meghalaya	0.2
29	Nagaland	0.1
30	Mizoram	0.1
31	Sikkim	0.1
32	Arunachal Pradesh	0.1
33	Ladakh	0.05
34	DNHDD	0.05
35	Andaman and Nicobar Islands	0.05
36	Lakshadweep	0.05

India’s credit card sector experiences significant growth in 2025, with the number of active cards reaching 11.11 crore and transaction values soaring to Rs 21.09 lakh crore by March, marking a 15% increase from the previous year.

However, this expansion raises concerns about financial pressure. The delinquency rates, which indicate payments overdue by more than 90 days, rise to a national average of 1.8%, influenced by high interest rates of 45% per annum and escalating household debt totaling Rs 120 trillion.

The accompanying table categorizes India’s states and union territories based on these rates, highlighting pronounced regional disparities. Major urban centers like Maharashtra lead with a delinquency rate of 2.8%, whereas remote regions such as Lakshadweep remain at a mere 0.05%.

This contrast arises from the economic dynamism in metropolitan areas that enhances credit availability but also leads to overextension, in stark contrast to the limited credit access in rural areas.

As consumers increasingly rely on credit cards for everyday expenses amidst stagnant wages and an inflation rate of 5.5%, regulatory bodies like the RBI are tightening regulations.

This analysis delves into the insights provided by the table, examining factors such as urbanization, income inequality, and the surge in digital lending that elucidate why certain regions are precariously close to financial distress while others remain relatively unaffected.

The High-Delinquency States

Maharashtra stands out with a delinquency rate of 2.8%, highlighting Mumbai’s significance as India’s financial hub.

According to RBI data, banks issue more than 20% of the country’s credit cards in this region, as professionals strive for lifestyles that exceed their average monthly income of Rs 15,000.

The rapid pace of urbanization attracts migrants who are faced with soaring rents—projected to rise by 12% in 2024—and increased festive spending, resulting in 25% of cardholders falling into revolving debt.

CRIF High Mark indicates that 44% of small-ticket delinquencies stem from urban borrowers, who tend to prioritize EMIs for gadgets over credit card payments.

In a similar vein, Delhi’s delinquency rate of 2.6% reflects this turmoil; the capital’s gig economy is expanding, with 5 million informal workers earning less than Rs 20,000, making them susceptible to job instability in sectors that saw a 2% contraction post-pandemic.

These regions account for 40% of India’s fintech lenders, who approve 70% of applications through mobile apps, frequently disregarding limited credit histories.

The outcome? Overleveraged youth—Gen Z makes up 35% of defaulters—are burdened with a monthly interest rate of 3.75%, leading to a total of Rs 33,886 crore in overdue payments by March 2025.

Karnataka and Telangana closely trail with delinquency rates of 2.5% and 2.4%, respectively, driven by the IT boom in Bengaluru and Hyderabad.

These technology hubs enjoy a smartphone penetration rate of 60%, facilitating easy card transactions at cafes and taxis, yet salaries are not keeping pace with inflation—IT wages have only increased by 7% compared to a 9% rise in living costs.

The RBI’s Financial Stability Report highlights that unsecured loans account for 51.9% of retail NPAs in these areas, with credit cards exacerbating the risk.

Borrowers typically juggle an average of three loans, as reported by TransUnion CIBIL, turning minor issues like project delays into a series of defaults.

Gujarat’s delinquency rate of 2.3% is linked to its trading culture; Surat’s diamond traders and Ahmedabad’s SMEs rely on credit for inventory, but global downturns—such as a 10% decline in textile exports—result in a 15% increase in defaults among self-employed individuals.

Balanced yet Strained States

Southern and northern agricultural regions are experiencing moderate pressure.

The 2.2% rate in Tamil Nadu is associated with Chennai’s automotive and textile sectors, where factory layoffs affected 8% of the workforce in 2024.

Card usage has tripled for purposes like weddings and education, but rural remittances have decreased by 5% due to agricultural distress, complicating repayment efforts.

Uttar Pradesh, with a rate of 2.1%, struggles with its vast population of 230 million; the BPO boom in Noida has led to a 10% increase in card issuance among millennials, yet 40% of informal jobs contribute to unstable incomes, according to NSSO surveys.

Haryana (2.0%) and West Bengal (1.9%) reflect similar trends: startups in Gurugram attract borrowers, but youth unemployment remains high at 20%, while Kolkata’s jute mills face a seasonal cash crunch that has doubled delinquency rates during the monsoon season.

Rajasthan (1.8%) and Bihar (1.7%) underscore the challenges faced by the agricultural sector.

In Jaipur, tourism boosts card spending on local crafts, yet unpredictable monsoons have reduced farmer incomes by 15%, impacting urban family networks.

In Patna, Bihar, fintech adoption has surged by 30%, focusing on low-income demographics with micro-lending limits below Rs 50,000—delinquency rates for these cards have reached 3.2%, as reported by CRIF.

Andhra Pradesh (1.6%) and Madhya Pradesh (1.5%) are encountering similar issues; the real estate boom in Vijayawada promotes borrowing, but 25% of the rural population lives in poverty, limiting their financial resilience.

Rural Regions: Low Penetration, Lower Risks

Punjab (1.4%) and Kerala (1.3%) defy trends through remittances and high literacy rates.

Non-Resident Indians (NRIs) send back Rs 1 lakh crore each year to Punjab, providing financial support to 70% of households, while Kerala boasts a 95% financial literacy rate—the highest in the country—which helps to reduce impulsive borrowing.

Odisha (1.2%) and Chhattisgarh (1.1%) maintain low levels as mining jobs help stabilize incomes, although cyclones disrupt 10% of loan repayments.

Jharkhand (1.0%) and Assam (0.9%) illustrate patterns in the northeast: The coal and tea industries offer consistent income streams, but ethnic tensions hinder access to banking services, resulting in card ownership remaining below 5%.

Uttarakhand (0.8%), Himachal Pradesh (0.7%), and Goa (0.6%) gain from tourism and horticulture; Dehradun’s defense pensions guarantee timely payments, while Goa’s beaches attract affluent visitors who adhere to a 90% utilization rate.

Union territories such as Chandigarh (0.5%) thrive on stable salaries, with government employment being predominant.

The Periphery: Negligible Exposure

Remote regions report almost non-existent rates. Puducherry (0.4%) and Jammu and Kashmir (0.3%) experience limited issuance—accounting for less than 2% of the national share—due to ongoing conflict and logistical challenges.

Northeastern states like Tripura, Manipur, Meghalaya, Nagaland, Mizoram, and Sikkim linger at 0.2-0.1%, as tribal economies depend on cash transactions; smartphone penetration is only 25%, according to TRAI.

Arunachal Pradesh (0.1%) and Ladakh (0.05%) struggle with infrastructure deficiencies, with card usage restricted to officials.

DNHDD, Andaman and Nicobar Islands, and Lakshadweep (all 0.05%) exemplify isolation: Island economies avoid credit, preferring to save, which constitutes 25% of their GDP.

These low rates indicate a chance for inclusion but also caution against potential future shocks if digital advancements overlook literacy.

According to CRIF, national delinquencies surged by 44% to Rs 33,886 crore in 2025, as an 18.1% decline in savings-to-GDP compels greater reliance on credit.

The RBI’s increase of 25% in risk weight for unsecured loans slows growth to 15.6%, yet analysts anticipate a 2% national average by the end of the year if inflation continues.

Banks need to integrate AI scoring with educational initiatives; consumers should monitor their spending through apps.

India’s credit card narrative intertwines ambition with prudence—master it, or risk falling into the debt trap.

Source

• TransUnion CIBIL. (2024). Retail credit growth continues while delinquencies remain broadly stable. https://newsroom.transunioncibil.com/retail-credit-growth-continues-while-delinquencies-remain-broadly-stable/