Stashfin, a neobank, has not too long ago launched a brand new credit score line card. Referred to as #LiveBoundless, this card is focused on the girl shopper. It’s aimed to work somewhat in another way from the standard bank cards that focus on all buyers. The #LiveBoundless card has tie-ups with clothes, cosmetics, electronics, and kitchen home equipment manufacturers which are particular to girls, in addition to providing cashback and low cost advantages.
What does #LiveBoundless card supply?
To distinguish itself from scores of bank cards on the market that pander to the shopaholic, Shruti Aggarwal, Co-Founder, Stashfin, says that this card is aimed on the salaried millennial girl and one who’s new to credit score (NTC). The cardboard is open to all girls, no matter whichever checking account she holds. All she wants is an web banking facility and a smartphone.
After your software will get authorized, you get a digital card in your Stashfin app and in addition a bodily card.
Identical to another bank card, the #LiveBoundless card gives reward factors; 1 ‘Stashcash’ level for each Re 1 spent. A welcome reward of two,000 Stashcash factors awaits you on the time of enrolling. On purchases, the cardboard customers get 1 p.c cashback on each on-line/retail spend. The cardboard gives a credit score restrict of as much as Rs 10 lakh. “The applicant must share a financial institution assertion whereas making use of for the cardboard to judge eligibility and credit score restrict,” says Aggarwal.
There is no such thing as a becoming a member of charge and annual charges. The cardboard is lifetime free.
In contrast to typical bank cards, money withdrawals are free. In comparison with this, as an illustration, SBI bank cards cost a transaction charge of two.5 p.c or Rs 500 whichever is greater for withdrawal utilizing the ATM.
Each six months, Stashfin will overview the person’s credit score profile. Primarily based on this overview, it might change the rate of interest, tenure and credit score restrict. This may work in your favour in case you are a disciplined person. But when your spending goes awry otherwise you persistently default or revolve your credit score, the overview can work towards you.
Annual rates of interest on excellent dues are between 11.99 p.c each year to 59.99 p.c each year. Aggarwal says that prices are greater for these and not using a credit score historical past. Right here once more, this might work for or towards you, relying in your credit score historical past. A processing charge (3 p.c to five per cent) applies if you don’t pay throughout the credit score interval.
“The rates of interest appear decrease than common bank cards for purchasers with a superb credit score profile,” says Parijat Garg, a private finance knowledgeable, who analyses bank cards carefully. As an illustration, HDFC Financial institution Solitaire Credit score Card prices 43.2 p.c each year flat rate of interest on excellent dues (consult with graphic).
“It is sort of a zero-cost product for customers for those who repay the excellent dues on the cardboard inside 30 days of credit score interval,” says Garg.
What doesn’t work
For these with a superb credit score historical past, the rates of interest are low. However for NTC clients, rates of interest can go as much as as a lot as 59.99 p.c each year. Garg says the cardboard might not have a lot to supply to mature customers who often get excessive credit score limits as they might have already got a bunch of bank cards. Aggarwal disagrees: “Our tie-ups with manufacturers throughout segments that particularly goal girls supply worth to our clients.”
Nevertheless, regulatory uncertainty has solid a cloud over playing cards issued by fintech companies/neo banks like Stashfin. Lately, the Reserve Financial institution of India (RBI) mentioned that fintech companies can not supply credit score to clients (both by way of loans and bank cards) if they don’t have a tie-up with a financial institution. At current, this guideline has affected non-bank pay as you go fee devices (PPIs) issuing playing cards. To make certain, Stashfin has partnered with State Financial institution of Mauritius (SBM) and NSDL Funds Financial institution. Aggarwal declined to touch upon any affect of the RBI’s pointers.
Must you apply?
This card generally is a good begin for girls who’re in search of their first credit score line card. However in case you are eligible for bank-based bank cards, it pays to examine them out first.
Girls-centric playing cards might supply some extra advantages to girls, however bank card is a extremely aggressive market. Even gender-neutral bank cards can give you a bunch of advantages like airport lounge utilization, way of life advantages, and so forth.
Garg warns: “The patron ought to apply for such a card solely whether it is obtainable at no or minimal onboarding price, because the readability on any affect of RBI pointers to financial institution PPI-backed playing cards remains to be to emerge.”