Preparation to take a loan from Credit Card, interest may have to be paid up to 50% more, learn how?

Credit card The trend has increased rapidly in the country. Currently, credit cards are the most youthful. The youth population wants to meet all its needs with credit cards. Whether to buy a mobile or go for a walk, there is a credit card. Not only this, there is no hesitation in taking loans from credit card if needed. However, it is having a very bad impact on the financial situation. The youth population is getting caught in the debt trap. Financial expert says that it is easy to take from credit card but it is difficult to bear the burden of interest. Credit card may have to pay interest from 40% to 50 percent on loans. Let’s know how?

How is the credit card loan different?

The purchase made with a general credit card is interest for 45 days. At the same time, interest on credit card loan starts from day one. There is a minimum payment option on credit card purchases. Conversely, the loan on the card is a fixed EMI, with no interest-free period. Interest has to be paid from the first day itself. Therefore it is more expensive.

In this way, they pay huge interest

The interest rate on credit card loan is usually 18-24 percent per year (0.99–1.5 percent uniform monthly rate). Apart from this, the processing fees are 1-2 percent. In pre-payment case, 3-5 percent penalty is penalty. If you take a loan of Rs 1 lakh at an interest rate of 1.25 percent from the credit card, then you pay about Rs 10,000 in a year. At the same time, if you take a personal loan at the redeusing interest rate of 13, then you will pay an interest of Rs 6,800 annually. In this way, on a loan taken from a credit card, you pay up to about 40-50 percent interest.

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