Indian banks increasingly are offering defaulters on their credit cards lower-interest loans to pay off their card debts.

On some cards, issuers in India may charge annual interest rates approaching 40%, while the interest on other bank loans being offered to help cardholders pay off their debts may range from 18% to 24%, according to an official from India's second-largest card issuer, ICICI Bank, which issues more than 7 million credit cards in India.

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