Paying rent is generally one of the biggest components of an individual's monthly expenditure. But paying rent via credit cards can now reap rewards.
Paying rent is generally one of the biggest components of an individual’s monthly expenditure. But paying rent via credit cards can now reap rewards. RedGirraffe, a London-based fintech firm, is now offering a facility to pay rent via credit cards by using its online platform ‘RentPay’. The company has joined hands with various banks which include SBI, ICICI Bank, HDFC Bank, Axis Bank, Kotak Mahindra Bank and IndusInd Bank. It means, if you have a credit card of any of these banks, then you are in for a treat.
How to do it?
To avail the facility, customers need to visit the website www.redgirraffe.com and create a RG Property ID by entering necessary details of the rental property and attach the rental agreement. The tenant will then mention the bank account details of the landlord in the same form. Once the form is submitted, a mail will be sent on your mail ID. After this one-time registration, your monthly rent will be deducted automatically on a predetermined date.
“Focussing only on the rental part for now, what if we tell you that you can pay your rent via your credit cards at an unbelievably low rate (0.39%: pretty much-meaning Rs 39/- for Rs 10,000/monthly rent)? We pay nearly 10 times that amount as convenience charges while booking that regular flight ticket, isn’t it,” asks Manoj Nair, Founder and CEO of RedGirraffe.com.
Why is it beneficial?
The benefit of using the RedGirraffe platform is that an individual gets 45-60 days of credit as his/her credit rent remains in the savings bank account and the person earn returns on the amount. Banks offer reward points in the form of products, gift vouchers, e-vouchers and air miles on each transaction which can later be used by customers. Vijay Jasuja, CEO, SBI Cards, says that customers can also redeem these points to pay their outstanding amount on the card. Paying via credit cards will also help a person build a good CIBIL score.
What are the charges?
A transaction fee of 0.39 per cent with a minimum of Rs 39 per transaction is charged from the users of ICICI Bank, HDFC Bank, Kotak Mahindra Bank and Axis Bank. Service tax will be levied from it.
This means for a rent of Rs 10,000, a tenant pays Rs 39 additional as transaction charges. Service tax of 14 per cent shall be an applicable extra on Rs 39. Here’s how it works:
Monthly Rent : Rs 10,000
Bank’s & RG’s transaction charges: Rs 39
Service tax: (14% of Rs 39) Rs 5.46
Total chargeable per month: Rs 10,044.46