Loans Vs. Credit Cards In Indian Banking: A Game Theory Perspective Financial Study

Abstract

This study presents a comparative financial analysis of loans and credit cards within the Indian banking sector. By examining their structure, interest mechanisms, repayment patterns, and risk factors, the research highlights how these two credit products serve different financial needs and customer segments. The paper explore data from both public and private banks to understand how lending strategies vary between institutions such as the State Bank of India (SBI) and Housing Development Finance Corporation (HDFC) Bank. Key indicators like interest rates, default rates, and customer usage trends are explored to assess the financial impact of each product on both banks and borrowers. The findings reveal that while loans offer stability and are suited for long-term needs, credit cards provide flexibility but carry higher financial risk. This study aims to guide consumers in choosing the right credit product and help banks optimize their credit strategies for sustainable financial growth.