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How Personal loan fare better compared to Credit Cards

Empower yourself, not Impoverish !

A credit card or a personal loan could be right for you in any sudden financial need as they both provide the money you need fairly quickly. But Unfortunately, choosing between a credit card and a personal loan should be a thinker. Each has their own pros and cons like, credit cards are usually better for short-term requirements while a personal loan is ideal for people who need more time to repay.

The article tries to address your typical concern of most customers with regards to consequences of converting your Credit Card balance into EMIs with the Credit card company.

WHY NOT CREDIT CARDS?

Credit cards provide a convenient form of payment for your arbitrary purchases, whether it is at a store or an online buy. The downside is, using a credit card for regular purchases and neglecting to pay your balance in full can result in huge interest charges that might accumulate over time and leave you with huge debt.

The reason this happens is because credit cards don’t require you to pay your balance all at once. Instead, you’re given the attractive option of making a minimum payment each month(EMI) while letting credit card interest accumulate on your remaining balance. The interest charged by your credit card issuer depends on your card’s Annual Interest rate. Most Credit Card companies charge Annual Interest Rates which are upwards of 40% and that’s not the only charge that you pay.

Let’s take a look at a typical case of Credit Card payment when you have opted to pay through EMIs

Say you paid Rs. 30,000 for Daughter’s school fee using Credit card however missed the bill and paid charges after 15 days’ delay. You might face serious problems such as,

You end-up paying interest almost at 100% P.A just for 15 days of delay in card bill payment

Don’t realize how expensive to use credit card beyond free credit period

Do not pay attention to other charges (like late payment fees etc.)

Negative Impact on CIBIL/Credit score for delayed payments

 How Mystro Personal Loan tries to help you?

Mystro provides quick and instant Personal loans from Rs. 10,000 to Rs. 1 lakh for Salaried or Self-employed for meeting emergency needs through Mystro mobile app. 

How a Mystro Personal loan is better than credit cards option-

 We provide a convenient option over credit cards, if you want to repay a loan beyond 30 days which will help you recover from your current financial deficiency and repay the loan amount with ease.

We offer much lower interest rates than credit cards. You pay as low as Rs. 100 per month for every Rs. 10,000 loan.

Having a flexible and simple repayment scheme is a key prospect before finalizing your loan with any financial institution. For that we provide easy EMI options for duration ranging from 3/6/9/12 months. You can choose the period as per your suitability.

Your major savings is in the form of lower interest costs compared to Credit cards.

We make sure there is no impact on your CIBIL profile for any loans taken if timely repayment of the loan amount is done.

We do not charge any prepayment penalties in case you want to pay back before time. 

 Check Typical EMIs and Interest Costs

All EMI calculations are for a Rs. 10,000 loan amount, for higher amount user can calculate EMI as a Multiple of Rs. 10,000, like for loan of Rs. 50,000, your EMI & Total Interest will be 5 times of respective figures mentioned in the table for a particular loan duration.

 What to Expect from Mystro Digital Personal Loans

100% Transparency & Zero hidden charges: No hidden charges, pay only when you get the loan.

Seamless Onboarding: Paperless loan application at your convenience

Zero Foreclose Charges: Prepay loan anytime without any prepayment penalties

Fast Decision Making: Your loan is processed the same day

Get Simple & transparent Paperless loans from Mystro for your Personal needs

For More Details visit our website: www.mystro.in and to apply for instant and quick loans through our mobile app. 

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Breaking Bad : How to liberate yourself from a potential Debt trap

Falling in a Debt trap is often a slow and gradual slide that can become more and more dangerous as it goes unnoticed till the person is neck-deep in debt and out of options. As a young and aspiring country, most people are looking for meeting their needs, and at times needs which are beyond their available means. Debt comes as a means to meet such needs, however borrowing beyond having a plan/an idea of paying back such future liabilities may end up creating stressful life.

This article is a small step towards addressing most common questions on how a trap gets created and how it can be avoided or addressed.

Here are some stereotype causes which can lead you into a Debt Trap:

1. Payday Loans

Payday loan seekers are more likely to be people with little-to-no financial literacy, and most vulnerable to fall into this trap. PayDay Loans are Ultra short duration loans (ranging from 7 days to 30 days), which are designed to meet your consumption needs that you can not meet from your own income.  Most people avail such loans because they are easy and quick and of small amounts. What most people also forget is that it is at an extremely high rate of interest (in some cases it is at an 100%+ annualized rate) and have non-transparent pricing (which can be devastating for customer’s credit profile if unpaid)

And, then some people fall into the habit of paying First Payday loan with another payday loan and the chain continues, where they end up at times taking 10 or more small payday loans within a month.

Our advice: Avoid such ultra-short duration loans like 30 days or less and borrow for a longer duration depending on loan paying capability. Take what you really need.

The shorter you borrow, you actually end up paying a higher amount on account of transaction costs.

2. Start Reducing your Debt if you are at 70% or higher debt

If you Monthly EMI outgo is 70% of your Net In Hand Salary or Income, then it's time you should start reducing your debt. For most Salaried people it may not be possible to increase their income mid of the year, however you can check your unwanted spends (like food, travel, movies etc) to keep a check on your debt. 

Our advice: Borrow some money from your parents, or siblings and reduce it immediately, rather than ending up in a worse situation later.

3. Converting Credit Card Spends to Long term loans

If you overspent for a few months on account of family/personal reasons, you should look at converting your Credit Card Bill into a Personal Loan for duration which suits you (like 6-12 months or more). It's always better to keep your repayment history sound rather than defaulting on Credit cards, which adversely impacts your Credit Score (CIBIL etc)

Our advice: Take a Personal loan from Mystro or other, and repay your credit card bill. You may avoid converting your Credit Card bill to EMIs with the Credit card company, as it is still costlier compared to most personal loans in the market.

4. Refinance High Cost Debt with Low Cost, not the reverse

Many customers do not realise what the cost of their loan is. Compare it based on Reducing Rate of Interest Annually (as most Banks quote the same). Compare Apples against Apples and not Orange. Do not compare a Reducing Rate to a flat rate. These are two different ways of computing a rate of interest. Ask your Loan company to convert and inform you.

Once you know that, start looking to explore if you can refinance your existing loan by some other Loan Company which can provide you at a lower cost.

Our Advise: Be well advised and do not rush for availing a loan. Take it from reputed and domestic players who have the best interest of customers and value transparency. Else, you may end up regretting such short-sightedness.

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If you are looking to meet your consumption or short term investment-related expenses, then Mystro Capital Personal Loans are best suited for them

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A 2-Minute Guide to Personal Loans

In this short article we try to address the What, When, Why, Which of Personal Loan queries that you may have.

When should I avail of a Personal Loan?

If you are looking to meet your consumption or short term investment-related expenses, then Personal Loans are best suited for them. For example:

Consumption Needs: Purchase of Gadgets, Family Events (like marriage, birthday functions, etc), medical emergencies, travel, etc

Short Term Investment Needs: School fees, Tuition fees, Upskilling course programs, Professional Degree/Diploma programs, Home Renovation, Own Contribution for Home Purchase, etc.

Mystro personal loans are customized to meet such varied needs of customers. Please read our article on :

Pitfalls of availing Personal Loans?

Breaking the Debt trap on account of excess usage of Personal Loans?

Why not Credit Cards instead of Personal Loans? 

Credit Cards are meant for fulfilling impulse purchase at a retail store. 

The Credit period offered is a maximum of 30 days.

Credit Cards can offer you to break your bill amount into EMIs, however, you pay exorbitant costs for the same:

Cost of the switch to an EMI loan (which is typically 5% or higher and mostly hidden charge kind of nature, as most of the customers do not realize paying this)

Rate of Interest is around 3.5% - 4% per month, i.e. 42%- 48% per year which much higher than our Personal Loan products

Personal loans are best suited for meeting your higher expenses that you may like to pay back in EMIs.

What is the cost of Personal Loans?

Your cost of the loan is the total interest cost and loan-related transaction fee that you pay. Typically the cost of the loan in interest rate terms varies from 15% to 36% per annum. However, this rate is on a reducing balance basis. Your actual annual cost of the loan would be around 12%-22% per annum. The cost of loans is a factor of your overall credit profile and financial credibility.

Who is Eligible for Personal Loans?

Indian Nationals of 21 years of age or above.

Our Loans are not limited to any group of people. There are no prerequisite terms about who is eligible or who is not, it all depends upon your Income profile, credit track record (if any) and a few other demographic information like location, age, etc. Please note, we also provide loans to New to Credit, hence if you have recently started earning and looking to avail a new credit line or build your credit profile, do apply with us 

Why Mystro, what’s different with Mystro Personal loans?

Firstly, transparency and convenience of service is our core objective. No Hidden Charges and all the transaction-related costs are available on the mobile app as well as loan documentation. Our Technology-enabled infrastructure lets customers apply, avail, track and repay loans at their convenience. Key reasons why Mystro is the safe and the best place for your loan requirement:

We are an RBI licensed NBFC and directly provide loans to the customer, there are no intermediaries

Fast and quick decision making

All processes are Digital and Paperless

Transparent and ethical

Things you should be aware of while availing Personal Loans

Choose your Loan partner as you would select for other Financial Services decisions. Yes, there are a lot of quick, easy instant loan options. But what most customers do not realize are the following:

What do they end up paying back as interest and other costs for such instant loans? Sometimes you are in a hurry to get the loan and forget to check the fine print (detailed terms and conditions of such loans)?

Can you trust your financial partner for future loan-related solutions when you need it?

We share key details of the loan on the app so that they are well aware of what they are availing. We advise all customers to read through the basic terms and conditions thoroughly with us and others so that they are in good stead.

To know more about Mystro Personal loans, you can either visit our Website or Download the Mystro App

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We are a Finance company Based in Mumbai. Our focus is on combining technology and core-lending principles for providing cost-effective, flexible and transparent lending solutions to customers.