With the new advanced technology in the banking system, people got a better alternative to manage their financial account personally by simply working on their laptop or desktop. The emergence of electronic age made almost everything possible to people. In today's era, our life is totally surrounded with the gadgets and advanced technologies. Similar in the case of the credit card, which brings a new era of plastic money. People also got rid from the tension of carrying hard cash which is now a days not a safer option. It also provides an option to those people who don't have sufficient money for buying anything instantly. They can purchase things and can pay later. Credit card, has become an ultimate financial "Saviour" especially for the working people and those who have a very hectic schedule. More than just being a status symbol or an add-on to expensive purses and wallets, credit card has revolutionized the way people spend their money. With its never ending benefits, there are some problems also that both banks and the user is facing. Banks are not getting the money back on time due to the failure of the customers of paying the bills for the purchased items from their credit card. In result of that, customers have to pay heavy interest rates. To overcome this problem, India's leading private sector bank ICICI bank comes with a new scheme for its customers. ICICI bank credit card holders can convert it from credit card loan to a lower interest bank loan on a long tenure. Bank is offering lucrative schemes to card holders in order to pare down their credit card exposure following a sharp increase in bad assets linked to them. However, to avoid the risk of more card users defaulting on regular obligations and opting for these easier settlement options, bank restricted this schemes to the limited customers. These limited schemes are worked out in consultation with the customer as an alternative repayment plan. For an example, if you have an outstanding loan of around Rs.2 lakh and are paying an interest as high as 18%, you can convert this into a regular loan, for a period of three years, where you will have to pay interest rate as low as 12%. Its a better option for the ICICI credit card holders to pay back the money with lesser rate of interest while it is also beneficial for the bank who can get back the money more speedily. Banks have now more cautious about the business now after the economic slowdown. The credit card base had dropped 21% to 21.1 million by the end of October 2009 from 26.7 million a year ago. Credit card outstanding has also declined by 12.13% to Rs.5,660 crore at the end of October 2009, from 6,442 crore a year ago. As per a research report from Venture Infotek, all banks are cropping their credit card business. ICICI Bank alone has brought down the number of card holders from 9 million in 2008 to 7 million in 2009.
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