Falling short of funds or not sure about the amount of money required to meet an expense in a few days from now? How about opening up a credit line rather than opting for a personal loan or withdrawing cash using a credit card? In a credit line, you can spend or use cash up to the limit sanctioned to you and interest gets charged only on the amount utilized. Shruti Aggarwal, co-founder, Stashfin, in an email interview with FE Online, talks about the various benefits of credit line kind of loans, charges involved and how it stands apart from a credit card or a personal loan. Excerpts:
How is your Stashfin Credit Line Card different from a credit card and a personal loan?
The Stashfin Credit Line Card is ‘all-in-one’, making it smarter than a credit card and simpler than a loan. Why we call it ‘all-in-one’ is because it has all the benefits that a customer would expect from a card. There are exclusive offers, attractive rewards programs, free ATM withdrawals, cashback on every spend, no fee or hidden charges, instant funds and flexibility of repayments. The Stashfin card is also on VISA, thereby allowing it to be used anywhere, from ecom websites to retail outlets. Our brand purpose of ‘nobody in India should be credit starved’ helps us in every decision we make. With the Stashfin Credit Line card, it takes as less as four hours from the time of application till the funds are disbursed to the user for their use.
In a personal loan, one has to repay through EMIs, while in a credit card, there’s almost 45 days interest-free period. How and what are the repayment options in Stashfin Credit Line Card?
Stashfin uses a unique reducing balance feature, wherein customers are rewarded for making timely EMI payments with reducing interest on the outstanding amount. This way, we aim to serve the underbanked and facilitate financial inclusion. Further, with regular offers on significant days, users can not only earn accelerated rewards, but also stashcash, which can then be redeemed for EMI payments. We want to educate people about good financial habits that lead to a lighter financial burden.
How is the credit limit or the maximum loan amount set for the borrower?
Stashfin uses an intelligent review process to underwrite customers with limited credit footprint. We work closely with our customers to improve their financial health is core to our business. The Stashfin all-in-one card is loaded with security features, allowing customers to control the spending limits across categories.
How transparent are the charges and what is the cost that a borrower has to incur in using your card? What and how is the interest rate charged?
The Stashfin ‘all-in-one’ Credit Line Card is completely free of cost. Customers can avail financial benefits with a lower interest rate and interest payments only for the amount used. This gives them the freedom to choose their terms of payments on the amount they currently need.
Are there any processing fees and prepayment charges for the borrower?
Our card is completely free of cost without any hidden charges which makes us one of the most transparent and reliable partners for the customers.
Any other unique feature that you wish to talk about the Stashfin Credit Line Card
Customers who sign up with Stashfin get a welcome offer of Rs 1,500 in stashcash and benefits worth up to Rs 3,450. With each expense, customers get 1% cashback; on referring their family and friends, customers earn stashcash. The Stashfin all-in-one Credit Line Card also offers free ATM withdrawals, and functions as a virtual and physical card for shopping, traveling and eating. We regularly come up with sales such as on Republic Day, International Women’s Day, the cricket season, etc – where customers can earn accelerated awards and win stashcash. Our mission is also to serve the armed forces – the protectors of our nation, who can avail ‘Stashfin Sentinel – Line of Credit Card’ that offers exclusive privileges and benefits enabling them with financial freedom.