Loans, credit cards, bank products: Don't fall for sales pitches
You must carefully evaluate the banking products to make sure that they are beneficial for your overall finances.
Rati must carefully read the literature on such women-oriented products to see if there are any special benefits available to her compared to standard accounts–a lower average quarterly balance requirement or add-on benefits such as concessional loans, credit cards or some form of insurance. Most importantly, these freebies should serve her purpose. Also, she must pay attention to the fine print on the debit and credit cards to see whether there is a catch in terms of a limit or a pre-condition.
If a specific benefit such as a lower rate on loan for buying jewellery is offered, she must assess whether it is actually useful for her, or simply a hook to reel her in. Is it the type of loan she is looking for? Or would she rather take a concessional home loan, car loan, or even a personal loan? If she is offered a loan for women entreprenuers at special discounted rates, she should conduct a comparative study to see whether the ‘special discounted rate’ is a benefit or a sham. Similarly, for loans, it would be wiser for her to see if there is a material difference in what the product offers.
Rati must carefully evaluate these banking products to make sure that they are beneficial for her overall finances. She also needs to check if the benefits that these banks advertise are real and tangible and do not prove to be just marketing gimmicks later on.
(Content on this page is courtesy Centre for Investment Education and Learning (CIEL). Contributions by Girija Gadre, Arti Bhargava and Labdhi Mehta.)