Today you have the power to
buy a brand-new car or a well-furnished new house even if you cannot pay off
the entire amount upfront. Thanks to the credit system, gone are those days
when you should have pockets full of cash to fulfill your wishes. Credit is the
magic wand to grant your wishes. Credit is the new cash that may buy you almost
Choose Your Credit Option
here means a system of purchasing products or services without paying the price
upfront. You may make the payment in installments or pay in full at a future
date. Interest is the fee charged for availing of this facility.
the credit option that best suits you depending upon your income, financial
obligations, and urgency. The new credit products or services are customized to
ensure your purchase to settlement process is fast, just a click away. Besides
the offers, reward points and discounts offered by credit issuers are like a
cherry on the cake.
may opt for a credit card to make the most of the credit limits sanctioned.
Different banks offer credit cards with competing offers, credit limits, and
of using credit cards:
credit limit granted for purchases anywhere and anytime.
up to 55 days depending upon credit card’s payment due date.
You get discounts,
offers, and cashback
points on your transactions and redeem them in exchange for products or
Free airport lounge
access or spa treatment.
behavior is rewarded with improved credit scores.
number of credit cardholders increased from 29 million in March 2017 to 62
million in March 2021 in India post demonetization.
Buy Now Pay Later (BNPL)
Now Pay Later is what it sounds like, where you may buy anything now but have
the flexibility to make a repayment later. It allows you to purchase any product
or service from e-commerce giants like Flipkart and Amazon to a fintech-like
policy bazaar without paying a single penny upfront.
The credit limit
granted is relatively lower than credit cards
as compared to other credit systems.
days are offered, ranging from 15 to a maximum of 45 days.
Lower late payment
Increase your credit
score if dues are paid on time.
has already captured 3% of the market share in the online e-commerce payments
segment, and the number could go up to 9% by 2024. As per estimates, India’s
BNPL market will rocket to $45-50 billion by 2026 from $3-3.5 billion in 2021.
Estimated Monthly Instalments (EMI’s)
are a form of credit granted by banks or financial institutions to help spread
the total cost burden over a specified period. When you want to buy a car or a
new house, you agree to convert your loan burden into monthly EMI. You may
possess the asset and start using it from day one.
You may get a loan
amount as high as five times your annual salary. However, the loan amount
sanctioned depends upon your credit score, financials, and income.
You may possess the
asset you purchased immediately, so a dream of a new car or new house does not
need a waiting period.
expense depends upon the tenure of the loan. The lower the tenure, the lower
the total interest expense to be paid.
You may get tax
exemptions when you purchase certain assets like a new house.
If you pay your dues
on time, your credit score may improve.
credit EMI segment will grow at a CAGR of 21% to become worth INR 205 billion
in 2026–27 from INR 84 billion in 2020–21 in India.
between cash or credit can be tricky, yet in today’s time, credit options
offered are so user-friendly that cash transactions have taken a backseat.
Besides, consuming any product or service without paying upfront makes credit
options a popular choice amongst people. So, what is your favorite credit