Loans & credit
Credit card
A card that lets you spend borrowed money up to a limit, interest-free if you pay in full on time.
A credit card is a short-term loan you repay monthly. Clear the full bill by the due date and you pay zero interest.
Pay only part, and the leftover attracts brutal interest, often 36% to 42% a year, on the whole amount.
Used with discipline, cards give rewards, a credit history, and free short-term float. Used carelessly, they are a debt trap.
For example
Spend ₹40,000 and pay it in full by the due date: no interest. Pay only the minimum, and the rest starts racking up ~40% annual interest.