Credit cards are available to only a small population of super-prime customers in India, while fintech companies are expanding product digital credit lines such as credit cards to all types of customers.
New Delhi. Nowadays, it is easy for individuals with a good credit score to get money from banks and other financial institutions. However this is not true for those who have limited access to credit. But thanks to the new-age fintech companies where it is possible and easy to avail credit to meet financial needs. Fintech companies go beyond credit scores and offer credit lines People have credit cards and personal loans as a traditional option. At the same time, fintech companies go beyond the credit score or offer a Line of Credit. Credit LineA credit line is a loan product exclusively offered to salaried and self-employed. Even if they do not have credit history or are completely new to credit. These credit lines range from 2 thousand rupees to 5 lakh rupees. Credit Card Credit cards are available for only a small population of super-prime customers in India. Currently, there are only 55 million credit card holders, which is about 4 percent of the Indian population. New-age fintech companies are expanding product digital credit lines such as credit cards to all types of customers. One of the biggest advantages of a credit card is that it can be used for shopping or cash advance.
Conclusion The credit line or credit card option depends on the credit score of the customer. As banks offer credit card facilities to customers with good credit history. There is an option of credit line for the rest of the customers. In the line of credit, customers can get as and when needed. The interest amount in the credit line has to be paid only on the used amount. Credit line customers do not have to pay a prepayment penalty.