EMI has to be paid on a monthly basis by the business owner when a loan has been taken. EMI calculators can help to know the loan amount that you will have to give on a monthly basis. You can then decide how you will pay for the loan.
One way is to take a loan by issuing a credit card and paying the EMIs through the card. But are there any benefits to this?
Let us firstly have a look at what paying EMIs through credit cards really mean:
The EMI can be paid using the credit cards but the thing to remember here is the card limit. An excess transaction can make you pay a penalty fee.
It can also affect the interest rate i.e. along with the interest rate, you might also have to pay the interest rate issued on the credit card balance.
If you need more cash and the credit card withdraw limit is not enough, you can take a loam and pay it back using the credit card. The money will directly be disbursed to the account.
Is there any benefit related to paying loan EMI through credit cards?
If you want instant funds, a credit card can be very helpful.
Credit cards can be used to pat EMI every month.
If you miss an EMI payment, the amount will be added to the next month’s bill. This amount will have an increased interest rate attached to it depending on the interest rate charged by the lender.
- if you go for credit card loans, the disbursement is quick and there is minimal documentation.
- But it is important to know the credit card limit so that it does not cross the cash limit that is available. You will be charged if you spend more than the m[limit by paying the EMI along with it. The outstanding amount will then be subjected to a penalty.
If you are in need of unsecured loans for your business, you can contact Gromor Finance for all your business loan needs!