there is bank giving you load againest credit card with reducable interest starts from 1.5%, etc. ofcourse one time processing fee of 2% of the loan amount..then 3% of existing amount for preclosure. but get a proof in hard copy (you can arite andsign in the form) then you can use if really you want money...
Re: credit card loan
by arun sharma on Apr 28, 2013 12:01 PM
Credit card interest 40%, personal loan interest 15%.How can you compare? Credit card company doubles its money in 2.5 yrs.
Dont understand why rediff is posting articles which are absolutely misleading and incorrect.
First credit cards loans are on purchases and not on cash drawals, some do offer the later but they charge processing fees and interest rates which are equal to personal loans.
Secondly, they thrive on defaults, if one defaults on any instalment, you had it..... the interest is charged at 40% in addition there will be penal interest and what not.
Re: Trap
by arun sharma on Apr 28, 2013 11:53 AM
Credit card interest 40%, personal loan interest 15%.How can you compare? Credit card company doubles its money in 2.5 yrs.
Beware, Have you heard about Black holes in the universe, once they are formed they start attracting small particles then finally end up eating up everything, even light can not escape from them, they become so intense until it is blasted with a big bang. These credit cards and loans are also similar to that, first it will eat your savings then your happiness and eventually your family's security until you are blasted in to pieces. The only way to come out of it may be that you have to finish yourself and take a re-birth.
All loans, other than those which help in creating an asset, like home loan or to some extent education loan, are bad. People must learn to live within their means. Loans are a sure shot way of getting sucked into a debt trap.
HDFC bank offered me a loan Rs.75,000/- on my credit card. after paying intial 6 EMI's...I preclosed the loan amount and paid asked amount of Rs.70,323/-...totalling Rs.86,000/- now after 2.5 years...the bank says the loan is still pending....since credit card loan can not b preclosed before the stipulated time. Incredible Indian Banks...
Re: The Worst Experience
by arun sharma on Apr 28, 2013 11:57 AM
Credit card interest 40%, personal loan interest 15%.How can you compare? Credit card company doubles its money in 2.5 yrs ie. 40% multiplied by 2.5 year= 100% interest gain.
what about the credit card interest rates... not all EMI's are zero percent... also you wont get cash in your account... only purchases can be converted to EMI... article is written by someone who doesnt understand the basics
Re: Credit card Loans
by Vikas Thakur on Apr 23, 2013 10:50 AM
Some cards indeed offer personal loans on CCs at lower interest rates apart from converting purchases into EMIs. Ofcourse its another way of entering into a debt trap.
Re: Re: Credit card Loans
by arun sharma on Apr 28, 2013 12:00 PM
Credit card interest 40%, personal loan interest 15%.How can you compare? Credit card company doubles its money in 2.5 yrs..There is no lower interest rate. It is pure mathematics.
