If you are a corporate employee in India today, chances are you are used to receiving calls from credit card executives almost every other day. Every bank seems to be offering its “most premium” card. And what is the headline benefit they proudly sell? - Four domestic lounge visits per quarter.
On paper, it sounds elite. The fine print, however, is familiar. The card is free for the first year, followed by an annual fee of around INR 1,500, which can be waived off if you meet a minimum annual spend. That spend typically ranges anywhere between INR 2 lakh to INR 6 lakh. And once the fee is charged, there is no going back as the banks rarely reverse it.
Few Uncomfortable Truths
There are a few uncomfortable truths hidden behind this entire proposition.
To begin with, customer behaviour. For most non-elite credit cards in India, lounge access has become the primary selling point. It is also one of the strongest cravings among young professionals today. This generation is the first in India that openly enjoys spending money to feel premium. The more cards you carry with lounge access, the richer you feel, at least psychologically.
Add to that the very common habit of forgetting to track annual card fees. One fine day, the statement arrives with an unexpected charge, and by then it is already too late to do anything about it.
Now look at the demographic reality. A large portion of corporate employees in India earn less than 12 LPA. Ironically, they are expected to spend a significant chunk of that income on a single credit card just to qualify for a fee waiver. If someone owns two or three such cards, the math becomes absurd, as you end up spending close to your entire CTC across cards just to avoid paying annual fees.
