How Personal loan fare better compared to Credit Cards
Empower yourself, not Impoverish !
A credit card or a personal loan could be right for you in any sudden financial need as they both provide the money you need fairly quickly. But Unfortunately, choosing between a credit card and a personal loan should be a thinker. Each has their own pros and cons like, credit cards are usually better for short-term requirements while a personal loan is ideal for people who need more time to repay.The article tries to address your typical concern of most customers with regards to consequences of converting your Credit Card balance into EMIs with the Credit card company.
WHY NOT CREDIT CARDS?
Credit cards provide a convenient form of payment for your arbitrary purchases, whether it is at a store or an online buy. The downside is, using a credit card for regular purchases and neglecting to pay your balance in full can result in huge interest charges that might accumulate over time and leave you with huge debt.The reason this happens is because credit cards don’t require you to pay your balance all at once. Instead, you’re given the attractive option of making a minimum payment each month(EMI) while letting credit card interest accumulate on your remaining balance. The interest charged by your credit card issuer depends on your card’s Annual Interest rate. Most Credit Card companies charge Annual Interest Rates which are upwards of 40% and that’s not the only charge that you pay.
Let’s take a look at a typical case of Credit Card payment when you have opted to pay through EMIs
Say you paid Rs. 30,000 for Daughter’s school fee using Credit card however missed the bill and paid charges after 15 days’ delay. You might face serious problems such as,- You end-up paying interest almost at 100% P.A just for 15 days of delay in card bill payment
- Don’t realize how expensive to use credit card beyond free credit period
- Do not pay attention to other charges (like late payment fees etc.)
- Negative Impact on CIBIL/Credit score for delayed payments.
How Mystro Personal Loan tries to help you?
Mystro provides quick and instant Personal loans from Rs. 10,000 to Rs. 1 lakh for Salaried or Self-employed for meeting emergency needs through Mystro mobile app.How a Mystro Personal loan is better than credit cards option
- We provide a convenient option over credit cards, if you want to repay a loan beyond 30 days which will help you recover from your current financial deficiency and repay the loan amount with ease.
- We offer much lower interest rates than credit cards. You pay as low as Rs. 100 per month for every Rs. 10,000 loan.
- Having a flexible and simple repayment scheme is a key prospect before finalizing your loan with any financial institution. For that we provide easy EMI options for duration ranging from 3/6/9/12 months. You can choose the period as per your suitability.
- Your major savings is in the form of lower interest costs compared to Credit cards.
- We make sure there is no impact on your CIBIL profile for any loans taken if timely repayment of the loan amount is done.
- We do not charge any prepayment penalties in case you want to pay back before time.
Check Typical EMIs and Interest Costs
Following computation is a for scenario if you decide to pay in 3 EMIsAll EMI calculations are for a Rs. 10,000 loan amount, for higher amount user can calculate EMI as a Multiple of Rs. 10,000, like for loan of Rs. 50,000, your EMI & Total Interest will be 5 times of respective figures mentioned in the table for a particular loan duration.
Annual Rate mention is effective flat rate of interest
What to Expect from Mystro Digital Personal Loans
- Seamless Onboarding: Paperless loan application at your convenience
- Zero Foreclose Charges: Prepay loan anytime without any prepayment penalties
- Fast Decision Making: Your loan is processed the same day
- 100% Transparency & Zero hidden charges: No hidden charges, pay only when you get the loan.
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