Now you can also pay your rent via credit card: Here’s all you need to know

By: | Published: February 9, 2017 11:58 AM

Demonetisation has been unquestionably 'the event of the year'. Reading India’s demonetisation, Donald Trump’s much-anticipated corporate tax plan to lower the business tax rate to 15% (thereby causing money to leave EM’s), US and UK’s tightening immigration norms, China’s unbelievably bulged Debt to GDP ratio and finally the doubling of international Brent Crude prices in the last one year.

Keeping this fact in mind, RedGirraffe.com claims to have recently launched a globally first fin-tech product that could help one save money when needed.Keeping this fact in mind, RedGirraffe.com claims to have recently launched a globally first fin-tech product that could help one save money when needed.

Demonetisation has been unquestionably ‘the event of the year’. Reading India’s demonetisation, Donald Trump’s much-anticipated corporate tax plan to lower the business tax rate to 15% (thereby causing money to leave EM’s), US and UK’s tightening immigration norms, China’s unbelievably bulged Debt to GDP ratio and finally the doubling of international Brent Crude prices in the last one year, “if one trend that gets clearer by the hour it is that recession looms in many ways over emerging markets. All such anticipated uncertainties require us to be prudent with our finances,” says Manoj Nair, Founder & CEO of RedGirraffe.com, a London-headquartered fin-tech & real estate technology company.

Keeping this fact in mind, RedGirraffe.com claims to have recently launched a globally first fin-tech product that could help one save money when needed. It is undoubtedly a fact that one of the largest portion of expense outflow for an average citizen remains either his monthly rental payment or his monthly mortgage EMIs, as the case may be.

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“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 Nair.

This means for a rent of Rs 10,000, a tenant pays Rs 39 additional as transaction charges. Service tax of 14% shall be 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

Nair says that even while buying an online flight ticket for Rs 3000, consumers usually have to shell out Rs 300 and more as convenience charges. However, the transaction cost on RentPay has been drastically subsidised for end consumers. Also, there are no hidden charges at any point in time.

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So, what are the advantages of paying your rent through your credit card?

* First, of course, is the pricing. Having technologically integrated with forty of the largest banks in the country, RedGirraffe.com offers services of “RentPay” in India at an unimaginably low cost of 0.39%.

* Paying rent via credit cards let’s you have 45-55 days of ‘free’ credit period.

* It lets you have ‘redeemable cash’ reward points from your bank.

* One can keep earning ‘interest income’ on the balance amount available in your savings bank account over those 45-55 days’ free credit period.

* The country is moving towards a ‘strong credit score’. Payment of rent via credit cards helps cement a strong CIBIL score (750 & more) as it reduces the chances of the payment getting delayed.

* A strong CIBIL score (above 750) gets you ‘better interest rates’ whenever you were to apply for any loan (eg: car, education, personal, housing, etc)

* It helps you manage your ‘cash flow’ in a much better way.

* You can also enjoy additional time-to-time ‘discount offers, by banks tailor-made for customers using RedGirraffe.com’s RentPay platform.

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Every tenant using this RentPay platform gets to avail a one-time 5 days brokerage discount in every city that RedGirraffe.com either currently operates (Noida/NewDelhi/Gurgaon) or plans to launch its operations (Mumbai, Pune, Hyderabad, Bangalore, Chennai and Ahmedabad) in the nearest of future.

How do I get started?

In its first phase RedGirraffe.com has launched “RentPay” with the debit and credit cards of HDFC Bank, ICICI Bank, Indusind Bank, Kotak Mahindra and Axis Bank as also SBI-GE credit cards.

In case you hold any of these cards do log on to www.redgirraffe.com and click on the top right corner at “RentPay”. Fill the form particulars and upload your recent and active rental agreement. Click submit button. That’s it!

“You would now get a unique algorithm generated RedGirraffe ID with a welcome email explaining how to online register this RedGirraffe ID in your online bank account. You may alternatively call your credit card issuing bank’s customer call centre for directions too. Once successfully registered, autopay instructions can be activated and your rent gets automatically paid to your landlord month over month and you keep getting all the allied benefits of using a credit card for a large ticket transaction like once rental payment,” says Nair.

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