I beg to differ with the point of view that credit cards are not common in India. It is very much common with people who are not afraid of a credit card & who use the credit card judiciously. What I feel is that if someone makes his credit card payments in time then he can enjoy free credit up to his card's limit for a maximum of 50 days. For such people the loan's interest rate is also very low, from 10-14/15% per annum on reducing balance. Banks feel that their money is safe with such people, hence they offer loans at low rates to such people. So, I would like to say that interest rates are high for those only who have a bad payment history & a bad credit rating (CIBIL).
In India people are used to loan waivers and they think that even the banks will also waive off their loans. So, they take loans & do not pay on time or even do not pay at all. When the banks initiate recovery procedures then they cry foul, whereas they themselves are at fault most of the times. Keeping that aspect in mind, banks adopt stricter measure at the time of issuing of credit cards to safeguard their interests. Banks, after all, are giving credit for earning.
Moreover as stated by N K Sharma herein above, there is a lot of black money circulating in India, and those having black money avoid credit or debit cards as they cannot account for the money as every bank account is linked to one's identity through aadhar card.
So, I would like to summarize it by saying that a person with good payment history has nothing to fear & gets loans at very attractive interest rates. Only those who have bad payment history face difficulties & get loans at higher rates, if at all they get it.