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The credit card has proved to be a very beneficial tool for users as it has changed the game in the market. Credit card users can do payment conveniently and also avail various rewards and cash backs. It has become a very important and essential tool in today’s modern times. One with good credit history and score can avail credit card more easily. The approval of the credit card is fast when one has good credit history maintained. The repayment of the credit card can be done easily through the EMI plan as selected by the user. Various banks and non-banking financing companies allow different EMI plan which can be selected as per the convenience of the user. 

Bank of India credit card can be easily applied through the online website as well as offline. It offers its users additional offer on the credit card. The bank also provides fast approval of the credit card with a very reasonable interest rate. The bank provides several options for the credit card such as Indian Bank Bharat Credit Card, Indian Bank Gold Credit Card, Indian Bank Platinum Credit Card and Indian Bank Business Credit Card. One can get the additional information for applying for a credit card at the online website of the bank. 

A credit card can also be used to improve your credit score. There are various reasons to apply for a credit card because it has various advantages. One of the major advantages is that it can help in increasing the credit score of the users. 

Few steps are mentioned below for increasing your credit score:- 

• Pay the bill by the due date: For a good credit score, one should always clear credit card bill timely. Clearing all the bill is important for increasing your credit score. Convert your credit card dues into EMI for easier payment.
  
  
• Review your credit card report: One should always keep a close check on credit card report like the history of on-time payments, low balances on your credit cards, a mix of different credit card as well as loan accounts, older credit accounts and all other needed information.
  
  
• Avoid multiple credit card applications within a short span of time: Applying for various credit card can pull down your credit score by a few points. Try not to apply for multiple credit card application as it can have a negative impact on your credit history.
  
  
• Avoid taking too much debt: Use your credit card carefully and try not to take much debt on your credit card. As it can have a negative impact on your credit history. Make sure to repay one loan before taking another as it can crash your credit score.
  
  
• Customized your credit limit: Customized your credit card as per your need. This can help you save a lot of money. One should customize a credit card as per the expenses. Using your credit card responsibly will help you save a lot of money and can also increase your credit score and maintain a good credit history.
  
  Conclusion:-
  
  A credit card has become a very important mode of payment in today’s time. Users of credit card are also increasing day by day. The credit card has increased the purchasing power of the people in India. One needs minimal documents like identity proof, address proof, income proof, salary slip, income tax documents for applying for a credit card. One can easily apply for a credit card almost at every bank and non-banking financing companies(NBFCs). Applying for a credit card in today’s time is no big deal as it can be applied online as well as offline according to the user’s convenience. 

Credits cards have several benefits if used correctly and responsibly however, the wrong usage of credit cards can lead the cardholder into a debt trap.

 The wrong usage of a credit card involves - 

1. Paying the only minimum amount due - Banks and financial institutions allow the option to cardholders of only paying the minimum amount. However, this leads to an increase in the balance to be paid, on which a high rate of interest is charged, and makes it difficult for the cardholder to repay the credit card amount.
   
   
2. Utilization rate over 30% - Cardholders are advised to maintain their spending under 30% of the credit limit. If they spend more than 30% every month it could lead them into a debt trap.
   
   
3. Using credit cards for daily use - Using a credit card for daily use can be very harmful as it increases the amount owed by an individual and it can be difficult to repay this amount in the loner amount. Allahabad Bank Credit Card should be only be used in emergencies.
   
   
4. Not collecting rewards - Users get rewards points for using a credit card. These rewards can be used to get cashback, vouchers, or even discounts on various goods and services. These rewards may have an expiry date and the user could lose out on these benefits.
   
   
5. Making cash withdrawals - Making cash withdrawals through credit cards leads to various additional hefty charges every day until the cardholder makes the repayment. This could lead the cardholder into debt.
   
   
6. Making late payments - Making irregular repayments of the due credit card bills could lead to a negative impact on the credit score of the cardholder which would affect their future credit limits as well eligibility to avail of loans.
   
   
7. Not using interest-free periods - Banks and financial institutions provide a grace period of 20-50 days, in which no interest is charged on the borrowed amount. Not repaying the due amount in this period could lead to high-interest rates charged on this due amount.
   
   
8. Using a credit card to pay hospital expenses - Hospital expenses and medical bills can be very expensive, even if one has medical insurance. Using a credit card to pay such large amounts could lead the borrower into debt in the longer run.
   
   
9. Ignoring bill statements - Some individuals do not open their monthly bill statements because they already owe a large amount. However, this could lead to them missing important information such as due dates, changes in credit terms, a higher rate of interest.
   
   
10. Pursuing rewards - Although availing rewards are useful for discounts and cashback, their value is much lesser than the payments one would make using a credit card. Some individuals make more payments using a credit card thinking they will avail themselves more rewards, this is not advisable at all.
    
    
11. Closing credit cards in haste - Credit cards should not be closed in haste as it has a direct negative impact on the cardholder’s credit score. It affects the utilization ratio extended and reduces the age of the accounts held by you.
    
    
12. Applying for multiple credit cards - Applying for multiple credit cards can lead to not only a reduction in credit score but it can also lead to an eventual debt trap as repayment abilities can be affected.
    
    
13. Not knowing terms and conditions - Cardholders may remain ignorant about the terms and conditions associated with their credit card. It contains important information regarding the actions taken by the banks in case of delayed repayments, etc.
    
    
14.  Carrying balance - Many credit card users are under the impression that carrying their due balance into the next billing cycle could help their credit cycle. However, it does the opposite and also leads to a higher rate of interest charged.

      Read More:- Simple Tips To Manage Your Car Loan 

The government has tried to bring certain reforms that make home loans easier to avail and enjoy. Since tax is mandatory to pay and home loans involve a significant amount of taxes due to such high cost of real estate, the government has introduced many benefits and subsidies on tax. These rebates help to enable home loans for tax deductions under various sections of the Income Tax Act (1961). There are special benefits for women applicants and defense personnel.

The government is inclined towards more people buying real estate and opting for home loans. By offering tax deductions, special schemes for marginalized sections, and multiple benefits for non-salaried people, they help the citizens to fulfill their goals of living in their own house. When you take a home loan , there are multiple tax benefits associated with it. The benefits can be on the home loan interest rate, the loan amount, stamp duty, or additional deductions for homebuyers.

Many banks like Canara Bank  offer home loans at low-interest rates. The loan amount can go up to Rs. 3.5 cr. depending on the borrower's financial strength and credit score. There are various interest subsidies like Pradhan Mantri Awas Yojna (PMAY) that provide lower interest rates to eligible customers. The candidates for the PMAY scheme can get additional tax subsidies of up to Rs. 2.67 Lakh on the interest rate. If the borrower has a co-applicant for the loan, the eligibility criteria increases, and the interest rate is also reduced to benefit both applicants.

Section 80C: The tax benefits are availed on the principal loan amount. These deductions are permitted only on the houses after the construction is complete. The borrowers have to provide a completion certificate to the lender to avail themselves of this deduction. The maximum deduction can be up to Rs. 1.5 Lakh. The deduction is not provided while the construction is going on. When the applicant is availing of this subsidy, the property cannot be transferred or sold. There is a minimum period of five years from which the house was possessed by the borrower.

Section 80EE: The value of the house/property should be less than Rs. 50 Lakh. The LTV ratio also is considered, and the maximum loan amount should be Rs. 35 Lakh or less. This deduction applies only to the interest rate that is paid each year. The maximum tax rebate is Rs. 2 Lakh per year. The house can be purchased or constructed, as there is no restriction on its status.

Section 24(b) : This tax deduction is applied on both the interest rate and loan amount, i.e., the whole amount paid under the home loan. For self-occupied property, the maximum amount is Rs. 2 Lakh, while for Non-self-occupied property, there is no upper cap. The purpose of the loan can be for anything like purchase, construction, repair, renewal, or reconstruction of a real estate property. The person is eligible for this tax benefit if the purchase/construction of the house is completed within 5 years of taking the loan. The tax deduction takes place on an accrual basis.

There are special rebates for joint home loans. The two applicants can take the home loan together while enjoying tax benefits on interest rate and principal loan amount separately. If the person is eligible for tax benefits of Rs. 2 Lakh (interest rate) plus Rs. 1.5 Lakh (Principal amount), the same benefits can be enjoyed by the other applicants as well. The eligibility criteria also enhance for joint home loans.

Conclusion

Applicants can also avail themselves of tax deductions on a second home loan. Although the deduction does not apply to the loan amount for the second home loan, there are the same benefits as in interest rate for single home loans. To avail yourself of all tax benefits, ensure that the income tax return is filed completely on time.

A home loan is the type of loan where a person is given a lump sum amount to his bank account or the home construction company's account, which is providing the house. In the counterpart, the person will have to go through the loan procedure until the final instalment of the; loan repayment is made, and the ownership will be transferred to that of the customer's name.

There is the availability of the tax benefit as the person who will be availing the home loan will also be getting the tax benefits, and on the other side of the coin, the loan procedure and certain limits the person will have to maintain.

• There is a tax benefit on the first house, and per the income tax section 80C, a person will be eligible to get the deduction of Rs 1.5 lakh rupees on the total loan amount, but the condition is that the construction of the house needs to be completed. One cannot claim on the incomplete house. Another tax benefit can be claimed by the customer upstairs two lakhs on the total interest. Here also the condition will be the same.
  
  
• They will need to complete the construction of the house. Else there will not be any chance of getting the same. If there is the involvement of the second house in the context of this matter, then there will be another deduction on the total interest amount under section 24(b) of the income tax act 1961. These are done to encourage the people and indirectly grow the business of the financial institutions and implement the reformed policies as well.
  
  
• There will be no repayment charges compared to that of the personal loan or the car loan. The most significant advantage of this type of loan is that if a person is having surplus money and wants to make the payments before the expiry of the loan tenure, he will do so, unlike the other loans. Oriental bank of commerce home loan provide such benefits for the customers. There will not be ebay kinds of charges available or is against the same.
  
  
• There is the facility of the balance transfer. In this type of loan, the customer wants to shift the loan to another lender who provides a better interest rate. On the other hand, the availability of the balance transfer calculator is there on the official websites of the respective banks and the NBFCs. The Home loan emi calculators which are available in the official websites will give a good estimation. Through this, there will be less burden on the staff, and there will be the possibility of getting faster information for the prospect customers.
  
  
• In the urban cities, there are massive figures of payments if any house is taken on the rent basis of which will be a total loss as till the time being there will be full rent payment till the timer of the 15-20 years that will be equal to that of the EMI of 70-80% of the home loan if is availed. This is the advantage that one will be saved from the burden of making the monthly payment for a house rented which is pathetic.

There will be more tenure that will give the leverage to enhance the income capacities and the income possibilities, which will help them manage the next coming instalments and pay accordingly. More the time more will be the co confidence in the people to pay the loan properly.

Conclusion -

To conclude, there will be other advantages like that of capital appreciation. As day by day, the home's valuation will increase, then the resale amount will also be increased so that if there is an opportunity to sell the house in the future, one can get a good amount.

Must Read:- Calculation Of A Home Loan 

How To Apply For A Home Loan?

The whole process of applying for a home loan is not so complex. Following are the steps which will tell you about the procedure of applying for a home loan:- 

1) Application:- The very first step for applying for a home loan is filling the application form. The form would contain a few details like your name, phone number, pin code, type of employment, etc. After filling the form, the representative will get in touch with you to move forward with the process of application. ICICI Home Loan offers attractive interest rates to its customers.

2) Collection of Documents:- Some of the documents that you need to apply for a home loan are:- 

a) Identity Proof- Aadhaar Card, PAN, Voter ID, Passport, Driving License, etc.

b) Residence Proof- Utility bills, ration card, PAN, Aadhar Card or renter’s agreement can be submitted. 

c) Bank account statements.

d) Latest salary slips.

3) Document Processing and Verification:- After taking your documents, the moneylender will process and authenticate all your documents carefully. They may even contact the relevant organisation or your office to confirm your occupation or employment. In this step of document processing and verification, they will also conduct a credit enquiry to check your credit report and your CIBIL score. Only if your credit report, documents and CIBIL score all are satisfactory, then the application for your loan will move further. You also need to fill the Home Loan Processing Fee.

4) Sanction Letter:- After the successful completion of all the steps mentioned above, the customer will receive a sanction letter. The following details are involved in the sanction letter:- 

a)  Amount of loan.

b) Rate of interest.

c) Type of interest rate, whether fixed or variable.

d) Tenure of repayment.

Apart from this, a sanction letter also contains other terms and conditions and policies of the home loan. The customer has to sign a copy of the sanction letter and revert to the lender. After all this, the offer of a loan will be accepted.

5) Secure fee payment:- This payment is a one-time secure fee, which you have to pay after you have signed the sanction letter. The moneylender can also ask you to pay this fee before signing the sanction letter.

6) The loan agreement and disbursal:- After the completion of all these steps, the final agreement of the loan will be given to you, after the checking and verification by the lender. Finally, the bank or the financial institution will disburse the amount of loan in your account, according to the terms and conditions.

Advantages Of A Home Loan

1) A home loan has a lower interest rate as compared to the other loans. 

2) A home loan is a really easy and simple way to get a large amount of money in a short period of time.

3) A home loan is a secured loan. It means that it is secured by your house value.

4) The home loan may be tax-deductible. It means that it is removed from the taxable income. It, therefore, lowers the expense liability of the tax.

5) The money is given to you in cash when you apply for a home loan.

6) A home loan is beneficial for the lenders too. This is because the lenders have a tangible asset that they can repossess. If the borrower who has borrowed the money for a home loan, fails to pay the debt, the moneylender can automatically take the whole possession of the house.

Disadvantages Of A Home Loan

1) You provide your home as collateral in a home loan. It is risky as you can lose your home to the lender, if you, unfortunately, fail to repay the debt.

2) In a home loan, there is a very high chance of facing bankruptcy. This is because the value of the home loan is worth more than the net worth of the house.

3) No doubt, a home loan is an easier way to get a large amount of money in a short span of time, but the borrower may sink deeper into debt if he takes up a second loan to pay the first one.

A credit card is a payment card issued by banks and financial institutions. It allows an individual to borrow funds from the bank, which can be used for the purpose of payments and purchases, both online and offline transactions. The bank creates a revolving account and issues a line of credit to the cardholder.

Credit cards can be used for multiple purposes such as payment of bills, shopping expenses, flight tickets, hotel or restaurant reservations, etc. It is usually used for small to medium expenses but can also be used for large expenses based on the card limit. The cardholder has to repay the credit money with a rate of interest charged on it, usually on a monthly basis. Failure in repayment can lead to additional fees and a higher rate of interest on the accrued debt. There are different kinds of credit cards such as standard credit cards, shopping credit, secured credit cards, rewards credit cards, etc. An individual should choose a card that meets their needs.

A credit card has several benefits such as it provides the convenience of not having to carry cash everywhere they go, this also results in safety. Credit cards can also be used to improve your credit score by making timely and regular repayments of the owed amount. This helps in increasing the credit limit and also helps in availing loans in the future as it shows positive repayment abilities. Using a credit card also provides the benefit of additional liquidity which can be very handy in emergencies.

Credit cards can also be used as a budgeting tool because the credit card company provides a detailed statement of the transactions made using the credit card every month, this helps in tracking the expenses and managing your finances. Payment through credit cards also gives the cardholders rewards such as cashback, vouchers, gifts, and discounts on flight tickets, shopping bills, etc. Even the repayment structure of credit card amounts is flexible.

The rate of interest charged on credit cards varies in every bank and financial institution, for example, HDFC Credit Card charges a rate of interest of 3.4% per month. The rate of interest on a credit card is not determined by factors such as repayment capacity but it can be adjusted based on the usage of the card and the relationship of the cardholder with the bank. However, a credit card has an interest-free period that ranges from 20-50 days, it depends on the day the transaction has taken place.

The interest-free period does not apply to cash withdrawals and transactions that have been forwarded to the next billing cycle. The rate of interest on credit cards is only charged when the repayment has not been made on time and in cases of cash withdrawals. If the cardholder makes the repayment on time, they do not have to worry about interest being charged.

Ways to a low-interest rate credit card

Improving credit score- There is a direct connection between your credit score and the credit that is being paid by you. To qualify for better interest rates, one should work to improve their credit score in the longer run. A credit score can be proof of your creditworthiness. This can be done by making timely repayments, maintaining a good debt to income ratio, assessing your credit score from time to time, etc.

Do your research- Before choosing any credit card, it is advisable to do detailed research about the terms and conditions associated with the credit card. A low-interest rate credit may not have rewards and discount benefits but it can help you to save money. Therefore all options should be compared and then a decision should be made.

Maintaining a good relationship- Maintaining a good relationship with the bank can help an individual to get a low-interest credit card. By simply speaking to a bank executive can help an individual to meet their financial requirements.

Zero percent APR- Another way to get a low-interest credit card is to apply for an introductory 0% APR offer, in which no interest is charged on any payment for a said period. It is important to understand the policies completely before choosing any offer.

Also Read:- Know about the credit card offers 

It is very important to repay your loan amount on time. Banks give the facility of flexible repayment structure and tenure to the customers. 

Customers have the flexibility to choose repayment structure according to their income and budget. It is very important to plan out your budget and income before making any decision. You can use tools like a home loan EMI calculator that helps you to calculate your monthly EMI along with the interest rate. This will help you to plan out your budget before applying for the loan.

But there is a way where you can decrease your EMI amount completely, and that is by making a down payment. 

What is a down payment?
Down payment is the amount that you pay at the initial stage of the home loan. Banks usually ask for 20% to 30% of the loan amount as a down payment. By making a down payment you can increase the trust between you and your lender. Along with this, it will also provide you with many benefits like lowering the total principal amount. 

Example:- If your home loan is INR 50,00,000 (50 lakhs) and the down payment is 30% (15,00,000) then the remaining amount that you'll have to pay as EMI will be 35,00,000. So the EMI that you would've paid every month at INR 50,00,000 with an interest rate of 8% at a loan tenure of 10 years is INR 58,491 and the interest rate over loan tenure is INR 2,403,854. Whereas the EMI that you'll pay after the down payment is INR 42,650 and the interest rate that will be payable over the loan tenure is INR 1,617,979. 

So from the above calculations, you will save INR 7,85,875 on the interest rate. So you can just imagine the amount that can be saved on EMI after making the down payment. 

It's important to make a down payment for a home loan. It will help you in many ways. Although there are banks like Dena bank home loan or BAJAJ finserv that provide you with home loans at 0% down payment.

Benefits of down payment:- 

1. Interest Rate:- As your loan amount will be decreased after the down payment so the interest rate which will be calculated on the remaining amount will decrease alternatively. So you can say that a down payment helps you to lower your interest amount even more.
   
   
2. Credit score:- If your credit score is low then you should make a high down payment to show your lenders that you are a creditworthy customer. Making a huge down payment will also help you to decrease your interest rate and will also reduce the loan amount alternatively. So it makes it easier to repay your loan amount, which will increase your credit score.
   
   
3. Borrowing power:- A huge down payment can make it easier for you to take another loan at the same time. It will also be easier for you to take an additional loan in the near future. Lenders like it when the borrowers have enough income to meet the monthly expenses and the loan amount. So income can mean a low debt-to-income ratio, which can help you look good in front of your lenders.
   
   
4. Loan amount:- If you pay a huge down payment then your loan amount will alternatively decrease. Which will make it easier for you to repay in smaller instalment. And your EMI amount will also be decreased so you'll have to pay less. For example:- If your home loan is INR 10,00,000 and you make a down payment of 30% (i.e. 3,00,000) so the remaining loan amount that you'll have to pay is INR 7,00,000 which is comparatively less than INR 10,00,000.
   
   

Conclusion:- Making a huge down payment can reduce the burden of repayment of the loan amount. Although a lot of banks give a percentage of down payment that you have to make, borrowers have the flexibility to make more down payment if they want to reduce the loan amount even more.

Must Read-Costs Associated With A Home Loan 

Credit cards have become a necessity for everyone in today’s time. It can be easily applied from any financial institution. While availing a credit card one should be properly aware of the offers offered on credit card by various institutions as it may vary depending on the financial institution you choose. Your credit card information is secured safely with the card issuer. One should never share the card information with anyone as it can be misused. Any bank can easily provide you with a credit card in favorable conditions if you have a good credit score.

SBI Credit Card can be applied online easily without much hassle. SBI provides different types of credit cards depending on different needs of the user. SBI bank offers various offers on credit cards. One can also choose the EMI facility on the SBI credit card. SBI also provides credit card protection plans. For applying for credit card SBI bank is highly recommended as it provides various offers and rewards on credit. One can easily apply online for availing a credit card at SBI bank.

There are various benefits for availing credit cards in the time of pandemic. Banks and non-banking financing companies(NBFCs) are offering a great deal on credit cards in this pandemic time. One can avail various offers on credit cards in this pandemic time. Few benefits of getting a credit card in this pandemic are listed below-

1. Interest rate fell due to the covid-19 pandemic. The average interest rate on credit cards has gone down below the pre-pandemic level. The borrowing cost is expected to be low through the coming years.

2. Many technological firms have also entered the credit card market with the products tailored to specific demographics like people using cryptocurrencies or people with low credit card scores.

3. The lending standards increased- In pandemics the times are tough due to that reason the lending standard of credit cards is made even more tough for the borrowers. People with poor credit scores may find it tough to qualify for a new card in 2021. But if your credit score is good then there is no need to worry you can qualify for availing credit cards easily.

Through travel cards one can easily earn various rewards while at home this year and can be benefited in various ways.

Due to this pandemic credit card rewards programs are more evolved. The rewards may include travel perks, airline miles, dining out points, and ride-share rewards. This can benefit a user a lot.

Credit card payment assistance kicked in due to this pandemic. Now borrowers can easily get payment assistance for availing the credit card. Consumers can now comfortably opt for payment assistance.

Conclusion 

There have been various changes in trends of credit cards. The credit card financing companies have made some policies during the pandemic time which can be useful for the users. One can easily get a credit card from any banks and non-banking financing companies(NBFCs) if they have a good credit score as well as good credit history. Credit cards when used responsibly can be of great help as it is accepted worldwide. It is one of the most convenient cards for purchasing. One can save a lot of money through various credit card benefits. Credit card transactions can benefit its users in the form of reward points, discounts, vouchers, cash backs, etc. Various banks and financing companies are offering great deals in the time of pandemic on a credit card. One can easily apply for a credit card through online websites or the apps of the bank simply by filling all the required information and documents.

Must Read:- Various Credit Card Payment Options 

A credit card is a type of payment card where the payment at a point of sale is made from a line of credit instead of the card holder’s bank account. A credit card is issued by a financial institution, usually a bank. The cardholder must then pay back this amount at the end of every billing cycle, which is usually at the end of a month. If the cardholder fails to repay the amount on time, late fees and additional interest fees will be charged on the amount owed. The credit card holder’s credit history and income determine the card’s ‘credit limit’. Vijaya Bank credit card provides individuals with great deals on credit cards according to their needs.

Credit card is a great way of managing money, they have several benefits and can be helpful in the time of financial emergencies-

• Additional Liquidity- A credit card allows the users to have additional liquidity, which can be extremely beneficial in times of an emergency. It allows the users to use a line of credit, so they can make payments even when they are not carrying cash with themselves. It can be beneficial in emergencies such as while paying for hospital bills or when the user faces an obstacle while traveling.
• Convenience- While using a credit card, the cardholder does not have to worry about carrying cash or their checkbook everywhere, instead, they can use a credit card. Credit cards are universally accepted, hence making it convenient for the user in time of emergencies.
• Helps in improving credit score- When a user makes use of credit cards to make a payment and then pays their dues timely, it helps in improving their credit score. This can be beneficial at the time of availing a loan in a financial emergency and it also helps them get a higher credit limit because the limit is determined by the user’s credit score and income. It shows positive repayment capacity.
• Interest-free periods- Credit cards have interest-free periods ranging between 20-60 days, no interest is charged on the credit amount in this period. It is beneficial for users who use credit cards in emergencies and they can pay back the amount within this grace back. It helps them save money on interest and other charges when they might be facing a financial emergency. A credit card can be used to purchase essential as well as non-essential products and services.
• Rewards and discounts- When a user makes a payment through a credit card, it avails them of several rewards and discounts. The user can get discounts on paying bills, flight tickets, etc. They can also get rewards such as vouchers and gifts. Credit card programs also give cash back rewards on prompt repayment of the amount owed.
• Insurance- Most credit cards come with insurances that many users may not be aware of. The user can insure things such as travel insurance, product insurance, and rental car insurance when they make payments through a credit card. This can be useful in emergencies.
• Safety- Carrying a credit card is safer than carrying large amounts of cash everywhere. Large amounts of payments can be made through credit cards also. They are also safer than debit cards because in case of fraud, in a debit card the amount is withdrawn from the user’s bank account and it may take time for the bank to reverse these transactions. While on a credit card, the user can just notify the bank and not pay the transaction amount, hence their money is not lost.
• Expenses records- A credit card maintains a record of each payment made by the user through the card, and the details are shown in the credit card statement. This can be used by the user to keep track of their payments and purchases, which can be useful for monthly budgeting and tax purposes.
• Repayment flexibility- The user has the option to repay their credit card bills through equated monthly installments (EMI) which allows them to know the required amount that needs to be paid every month. Banks also offer the option to the users of paying the minimum dues which would allow them to continue their line of credit.

Credit cards are very helpful in emergencies as it has several benefits but the user also needs to be responsible in making the repayments on time otherwise additional charges and high rate of interest is charged on the amount due.

Also read this: Way to avail Credit card 

We live in a time where Most credit cardholders consider paying bills digitally, either through mobile/internet banking, IMPS, NEFT, RTGS, by UPI, even by debit card and platforms like CRED. Today, most banks have stepped up the digital ramp to provide online services to their customers, be it applying for credit cards online, or to make monthly payments after you get one.

 Can we make credit card payments via IMPS?
IMPS (Immediate Payment Service) is a legal payment system that allows instant interbank funds in India. What makes IMPS even better is that, unlike traditional transferring options, it permits committing transactions at any time. Be it a bank holiday. The NPCI has regulated valid for every legal transaction, which makes it the most common payment gateway for credit card bill payment. The reason why it is a widely used payment option is that it doesn’t charge transaction fees and assures strong security.

Is NEFT an option for bills payment?
NEFT (National Electronic Funds Transfer) is definitely one of the most frequent payment options through which people consider paying their bills. As the name suggests, NEFT has a net that covers the entire country, so automatically, it promotes inter-banking transactions as well.The NEFT payment gateway is centred by the RBI (Reserve Bank of India) and is entrusted with nearly all sorts of legal transactions and payments.

Can the payments be made by mobile wallets?
The service of credit card bill payment is something offered by mobile wallets and payment systems. These platforms have this facility integrated within their design. Hence a customer is not expected to separately register or create a new account somewhere if they have one of such wallets/payment systems (like PhonePe, CRED, Paytm, Mobikwik).It is also one of the easiest payment options, as it directly links your wallet to your bank account, hence credits/debits the balances accordingly.

Can the payment be made by drawing a cheque or a demand draft?
Yes, it is absolutely possible to make credit card bills payment via cheque or DD. Paying the amount through cheque makes it easy for the customer to transact offline. The cheque/DD must be dropped in the bank branch of the concerned account and must be written in favour of the credit card account.

Here are a few dos to perform before drawing a cheque for your HSBC Bank Credit Card bill payment-

• It is significant for the cheque to be in favour of the credit card account.
• The cheque should mandatorily contain the credit card number.
• Keep the due date of the credit card bill payment in your mind while filling the cheque, as it may take more than three days and sometimes even 12 days (in case of outstation cheques) to be processed.

Can the credit card payment be made by depositing cash in the bank branch?
Yes, it is a fair matter to make the credit card payment physically by cash. To make the payment, you have to visit the bank which issued the credit card to you. On reaching the bank, the deposit slip must be precisely filled with relevant details.Make sure to recheck the bill amount before submitting, as it may lead to cheating or payment discrepancy.Paying physically via cash may take less than 24 hours, so it should only be considered as an option if the credit card payment timeline is 24 hours away.

What happens if one does not pay credit card bills?
In India, not paying credit card bills can lead to severe repercussions. On skipping one or two payments, banks usually charge late fees, penalty APR resulting in damaging your credit score. If it is the third time one has not paid the bill, the credit card account can be closed, with even more credit score decline and late fees. The fourth time may substantially damage the credit score, and a lawsuit can be filed.

Read More:- How to transfer a Car Loan to another lender? 

The home loan interest rate is a significant factor that always helps while availing the home loan. As we already know, taking out a home loan is an important and major financial decision. And choosing a low-interest rate is also a big decision. You have two choices whether you can choose a fixed interest rate or a floating interest rate. It depends on the person which method they want to select while availing the home loan because some people like fixed interest rate and some people like floating interest rate methods.

Those people who option fixed rate means that they also have to repay the whole loan as fixed interest amount, which means equal EMI as per the home loan tenure period; the rate would not change in this method. Some of the advantages of fixed interest rate are that this would not change if the whole of the market rate increases, then this would not impact your tenure and accordingly your fixed interest rate. Another hand, if you choose a floating interest rate, then it depends on market value. If the market price increases, then this would also impact your pocket and budget. It depends on you which method you want to choose.

Some people ask if it is possible to change the interest rate, then yes, this is also possible to shift your interest rate like floating to a fixed interest rate. But before you move your interest rate, the lender also charges some charges while changing your interest rate method. And there are some of the challenges also involved whenever you are looking to purchase any property or house. The first challenge you will face is selecting the right lender because sometimes some lenders charge high-interest rates when they provide you a home loan. That's why this is a challenge when you avail the loan.

And other critical factors that also determine the ability and ease to repay your home loan. Very high-interest rates can also stop you from taking a home loan or make you opt for a very long tenure period. Those people who have shallow credit scores or bad credit history may also find it challenging to get a home loan. A very good or high credit score always tells your lender that you can quickly repay the whole of the loan amounts before time. You can also check the credit score by online mode. Before choosing a home loan first, you need to check your score because some lenders reject your loan application. 

Sometimes some banks charge hidden charges because they get a high rate while they repay the loan amounts. So every borrower needs to research the rate in the market. If a bank charges a lower rate, they should choose to avail the loan. And there are some basic terms and conditions the borrower needs to follow while availing of the loan. As the home loan is a very long-term obligation, only a home loan provides you a long tenure period. If you compare other loans, you can not get more tenure periods while availing of the loan. It depends on you how long the tenure period you want to help yourself.

Conclusion :

If you want to get a home loan, then you need to check all the basic things. Because if you have proper knowledge about the loan, then the lender will not charge high interest rates or hidden charges. This knowledge always helps you while you avail yourself of the loan. If you are looking for the best bank that provides you a home loan with a cheap interest rate, then the SBI Home Loan is the best and quick choice for you. If you choose this bank, then the whole procedure takes very little time.

Also read this: Is it best choose for me when avail Home Loan 

The rules apply to both lending companies and investors who borrow money to invest. These guidelines are also created by the RBI and are updated on a regular basis based on economic factors.

General guidelines for the borrowers and the lenders: According to RBI guidelines, borrowers who meet the eligibility requirements, have established their repayment capacity, and have a CIBIL or credit score of 750 or higher may apply for a home loan. Borrowers must also provide all necessary documents, including personal and income tax returns, as well as sign a loan repayment agreement.

General guidelines on LTV: The maximum amount a borrower can borrow has been increased by the RBI. Under the new rule, borrowers will be allowed to borrow up to 90% of the property's real value. The overall LTV ratio is 80 percent for loans of more than 30 lakhs but less than 75 lakhs. If an individual wants to take out a home loan to buy a home worth 75 lakhs or more, the maximum LTV is 75 percent. So these are the basic things you need to look after.

Guidelines on prepayment charges: Home loans are long-term assets that can last up to 30 years, and the borrower is solely responsible for paying the interest on the principal amount using any means available. The interest rate can vary from one lender to the next, but if the loan is paid off early, the financial burden may be reduced. In accordance with the most recent home loan laws and regulations, the RBI waived prepayment fees. When interest rates are floating, lenders are barred from enforcing penalties for early repayment of home loans. Prepayment penalties ranging from 2% to 5% have previously been accepted by lenders.

Guidelines on home loan balance transfer: A home loan balance conversion allows a borrower to move from a high-interest loan to a lower-interest loan. As a result, a borrower will default on an existing loan and replace it with a new one that includes the unpaid principal. Borrowers will turn to a new loan without incurring penalties because prepayment fees have been waived. However, this is only true for home loan with variable interest rates. When it comes to fixed home loan interest rates, lenders can charge a prepayment penalty that ranges from 1% to 3%. Individuals thinking about taking out a home loan should consider purchasing home insurance to protect their family's financial future if they pass away before the loan is paid off.

Although the RBI does not need this information, it is advised to ensure that the borrower's dependents are not evicted if the loan is not repaid. If you take out a home loan from a lender like Deutsche Bank Home Loan, for example, you'll want to cover your family in the event that you can't repay the loan, so home loan insurance is a good idea. To meet a short-term financial need, you take out a loan. In fact, no one spends a lot of money these days because everything takes time and money to repair, and a home loan will help you reach your goals while putting less strain on your wallet.

If you have a high CIBIL score, you might be in a unique position to negotiate loan terms, including the interest rate, because lenders are more likely to accept loan requests from borrowers with high CIBIL scores. As a result, if you want to avoid rejections, keeping track of your credit scores on a monthly basis is important. A home loan is one of the most important loan terms because no one has a large amount of money to put into realizing a dream of owning a home, and it is unrealistic for a middle-class man to build his dream mansion on his own. Keeping track of your CIBIL scores, on the other hand, is a good idea so you know where you stand if you ever need a loan.

Also Read:- How to use a Home Loan as an asset?