Credit Card vs Credit Line Card: Getting money from banks and other financial institutions has become easy these days for persons who have a healthy credit score. Many borrowing options to meet emergency needs are available now, including credit cards and personal loans from banks. Also, several fintech companies are providing credit score-based digital loans. There is also a new option of Credit Line Card about which not many people are aware of. Well, Credit Line Card is basically a card which allows salaried and self-employed individuals to avail an instant personal loan.
Talking to FE Online, Tushar Aggarwal – Founder and CEO of Stashfin – which is a fintech company offering Credit Line Card, explained the difference between Credit Card Line and Credit Card and how Stashfin Credit Line Card helps users.
Aggarwal said that StashFin Credit line cards not only ensure netizens access to personal loans up to Rs 5 lakh but also help respective users load funds within 90 seconds. Credit Line Cards can not only be used to withdraw cash from any ATM but can also be swiped at any POS terminal, make purchases at any online merchant site or make instant transfers to Paytm wallet. Easy online application, quick processing time, and immediate transfer of funds make credit line cards a wise choice, he said.
What is the eligibility to get a credit line card?
Indian citizens, above the age of 18, with a proof of current employment earning a monthly income of Rs 15,000 or above, a bank account and a valid identity and address proof can easily opt for a credit line card. In the case of self-employed individuals, last two years’ IT returns are required. One of the most important criteria that makes the self-employed or salaried individuals eligible for credit line cards is that one should also have access to net banking to the salaried bank account to ensure quick processing and instant approval on the loan amount applied respectively. Individuals with a higher Credit score easily receive a loan as compared to the ones with a lower credit score.
Instant personal loans or credit lines offered to users range from Rs 500 to Rs 5,00,000 with the repayment period between 3 months to 36 months.
Credit Line Cards v/s Credit cards: Which is better and why?
According to Aggarwal, one of the unique features of the StashFin Credit Line Card is that it provides users with an ability to re-price the loan as they build a repayment history.
In contrast, credit cards interest rates are fixed for each drawdown.
Salaried and self-employed individuals (with a min. monthly income of INR 15,000) who opt for a credit line card are able to withdraw the emergency cash from any ATM, swipe at any PoS terminal or make purchases at any online merchant site. As compared to a credit card, users of credit line cards can repay the amount by benefiting from the extended moratorium period on EMIs.
The additional advantage for netizens is that zero interest is charged on unused credit amounts. As one keeps paying EMIs, the principal amount gets added back to the Line of Credit, thereby empowering you to load and use more money. In the rapid development of smartphone users, digital access and a shift towards consumerism have helped fuel the growth of Digital lending.
What is the difference between Stashfin credit line card and credit card?
In comparison to credit cards and personal loans where there are a lot of hidden fees, Credit Line Cards offer the borrower the ability to set auto debit instructions free of charge such that payments can be deducted from their account automatically without them mistakenly missing any payment. In case the payment gets missed, there are penal and late fee charges that they have to pay. There are no annual fees, commitment fees and foreclosure fees that they have to pay on the Credit Line Card.
Aggarwal said that StashFin Credit Line Card offers a number of features that are not available in credit cards. Credit card companies in India do not offer the ability to temporary block the card and permanently block the card in case of complaints. Replacement cards typically take a few weeks to arrive and almost always carry a fee. In contrast, StashFin Credit Line Card holders can block or unblock the card without paying any fee or calling customer support. This is a unique feature of the Credit Line Card.
Below table summarizes the other key differences between the Credit Line Card and credit card:
How to get Stashfin credit line card and use the card?
In order to apply for a credit line card, one needs to go to the web or mobile platforms of StashFin to fill a simple application form with profile details, online banking details & upload KYC documents i.e. PAN Card, Aadhar Card and Bank statement. A final verification process is followed by the Stashfin team to ensure speedy approval on confirming a credit line card to respective applicants within 24 hours .
On receiving the Credit line Card, the applicant needs to register the Card by clicking on ‘Register my Card’ via the Stashfin app and add the Card number. Netizens residing in India just have to feed in the OTP and the credit line card gets registered automatically. Once the Line of Credit is activated, one can load funds up to the credit limit on the Card, as and when needed, said Aggarwal.