When we look back at the previous
generation and their forefathers, we Indians were mentally attuned to spending
money on something only if we had saved up for it. Witness the large number of
people who used to save for decades and then buy a car or house very close to
their retirement, only when they had saved enough for that big-ticket expense.
Deficit financing was something that only governments did, and individuals just
spent what they earned or had saved, nothing more. The last two and half
decades have seen a rapid increase in the spending horizon of Indians. This is
because of the advent of several aggressive private banks in India which have
allowed Indians to dream and make expenses which they could never have
envisioned earlier. This could be either through loans or through that magic
piece of plastic called a credit card. Let us look at credit cards in more
detail.
A credit card is a kind of unsecured
loan provided by banks with a shorter repayment period, no interest charged
within the first repayment period, but very high rate of interest if the
payment is made after the payment due date. The amount of ‘loan’ possible on a
credit card is called the credit limit of the card. The credit limit that a bank
would give to an applicant would depend on several factors. If you already have
some relationship with that bank, then your performance in that relationship
would be a significant factor. If it is a deposit relationship (savings or
current account, or fixed deposits, or recurring deposits), then the amount of
money you have deposited with the bank under these accounts and your average
balance would be taken into account. If it is an advance (loan) relationship,
then your repayment history would be taken into account. In case you do not
have an existing relationship with the bank, then your income level (which
translates to your repayment capacity), and your CIBIL credit score would
determine what sort of a card you are offered. Banks usually have at least two
to three variants of credit cards, starting from the most basic ones with
lowest credit limits, and going up to the super premium cards which not only
offer the highest credit limit but also providing many other attractive
services and offers to those cardholders. Let us look at some examples of the
most premium credit cards in India below.
HDFC Bank Infinia – This is the
most prestigious credit card offering from HDFC Bank. It isn’t easy to get
approved for this card, and only the ultra-rich (called super high net worth
individuals) can aspire to be offered this card. Access to exclusive lounges
and golf courses are just a few of the innumerable prestigious benefits this
card offers.
Citibank Prestige – With an annual fee
of Rs. 20000, you need to be a wealthy person to get this card. Citibank has
anyway positioned itself as a bank for a higher class of clients, so the number
of prospective cardholders gets reduced anyway. This card looks most attractive
to globetrotters, with its attractive loyalty and reward points system.
Amex Platinum – You know how
exclusive this card is when you hear the annual fee of Rs. 50000. This card in
your wallet ensures that you are eyed with immense respect at the best
destinations and establishments across the world. As soon as the card is issued
to you, you start off with redeemable vouchers of the Taj group which are worth
Rs. 50000, which kind of makes the first year free for you.
For more detail : premium credit cards in india
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