![]() ![]() While it is essential to go for a car loan from a lender who has banking expertise in the sector of car or auto loans, so you get the best rate and comfortable repayment options, you can also use the EMI calculator like the Bank of Baroda’s Car Loan EMI calculator that will help you make a well-informed choice in picking your car loan. When you, as an individual are considering a car loan, you are likely to do your due homework in checking for affordability and the loan tenure among other factors. During the process, they also focus on how they can get a car loan that suits their requirement. It begins with where the individual is in his/her career, and the choice of vehicle they want, which is mainly based on why they want the car. Please consult your financial advisor before making any financial decision.Įvery individual’s journey to buy a car is unique. Bank of Baroda shall not be responsible for any direct/indirect loss or liability incurred by the reader for taking any financial decisions based on the contents and information mentioned. The information is not intended for distribution or use by any person in any jurisdiction where such distribution or use would be contrary to law or regulation or would subject Bank of Baroda or its affiliates to any licensing or registration requirements. ![]() The information is subject to updation, completion, revision, verification and amendment and the same may change materially. Bank of Baroda and/ or its Affiliates and its subsidiaries make no representation as to the accuracy completeness or reliability of any information contained herein or otherwise provided and hereby disclaim any liability with regard to the same. It is not a substitute for specific advice in your own circumstances. The contents are generic in nature and for informational purposes only. The contents of this article/infographic/picture/video are meant solely for information purposes and do not necessarily reflect the views of Bank of Baroda. In contrast, credit cards may be availed through an application or by invitation only. However, in the case of debit cards, money is not borrowed on credit, so no interest is charged.Īpart from the points mentioned above, a significant aspect of difference between debit and credit card is that debit cards are provided free of charge by the bank. The credit card issuer levies an interest rate if one is unable to repay the amounts borrowed on time. In the case of debit cards, banks issue daily cash withdrawal as well as PoS spending limits. Typically, credit card companies provide a credit limit, and you cannot borrow sums exceeding the credit limit. The debit card is linked to your savings account, whereas the credit card is linked to the financial organisation or issuing bank offering the credit facility. In the case of debit cards, the account holder can directly access the savings account to see the expenses incurred. The issuer sends a bill explaining the minimum and total sums due. People who have a credit card are sent a bill for the expenses incurred on the card each month. Having explained the meanings of credit and debit cards, let’s find out what is the difference between credit card and debit card. If you fail to repay the sums borrower on credit, the issuer levies an interest rate on the money borrowed. The issuer bills you for your credit card expenses, and you need to pay them off by a stipulated date. This limit is determined based on your income and can be increased from time to time. ![]() The issuer provides you with a line of credit, also known as a credit limit. What is a credit card?Ī credit card is another type of bank card through which you can borrow money for a bank or financial institution. Banks provide free debit cards and charge a small annual maintenance fee. The sums are automatically and instantly debited or deducted from your debit card. When you open your bank account, the bank issues a card that you can use at ATMs and PoS terminals to withdraw money or pay for your expenses, respectively. What is a debit card?Ī debit card is a card that is linked with your savings or current bank account. Let’s start with understanding the meaning of each card. So, we’ve listed the differences to help you understand. ![]() However, many people are often confused about the difference between debit and credit card and often assume them to be the same. After you’ve held your account with the bank for some time, the bank may even offer you a credit card. When you open a bank account, you are provided with a cheque book, a passbook and an ATM-cum-debit card, also known simply as a debit card. 4 Differences between Credit Card and Debit Card ![]()
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