Laila Arjuman Banu, an official at the Dhaka office of a foreign airline, has been using credit cards for almost five years.
Apart from this, he also relies on credit cards for air tickets and hotel bookings abroad. “There is no hassle of carrying cash and I use a credit card for the convenience of paying later even if I don’t have enough money, even though the interest rate is much higher,” he told BBC Bangla.
What is a credit card?Who gives in Bangladesh?
In the modern world, credit cards are called plastic money.
In a word, it is a card that a customer can take from a bank or such financial institution. Its feature is that even if you do not have cash in hand, you can make purchases with this card. However, up to a certain amount of money can be used or spent or withdrawn by a customer with his credit card. He has to pay that money after the specified time.
Again, the credit limit or how much money can be spent or withdrawn is usually calculated by the banks on the basis of the monthly income of the customer.
However, due to different policies of the banks, the credit limit may not be the same for all the banks.
Bangladesh Bank says that in June alone, more than Tk 1,000 crore was transacted using credit cards in the country.
Mir Shafiqul Islam, head of NRB Bank’s card division, says, “If a customer wants, he can pay for everything he needs, from home utility bills, internet bills and even the driver’s salary, using a credit card.”
According to him, credit card is no longer a luxury, it has become a daily necessity for many people.
How many people?
There are As one can see, there are more than 12 lakh credit card customers in Bangladesh at the moment.
As banks, they expect credit card customers to exceed 3 million in the next decade.
Mr. Islam says, “With the advancement of technology, credit cards will be widespread in Bangladesh in the next decade like all other countries in the world. All government and private services are being digitized in a way that will encourage the general public to use these cards.”
Where not to be used?
Bangladesh Bank says credit cards cannot be used for online gambling, overseas transactions, cryptocurrencies, lottery tickets or shares of foreign companies.
The central bank on Thursday issued another notification barring Uber from paying credit cards.
As a result, in addition to the individuals and organizations involved in digital marketing, the concerned people are fearing trouble in paying money to foreign organizations.
What can be done?
Credit cards can also be used for general online shopping or direct purchases.
Shafiqul Islam, head of NRB Bank’s card department, says credit card customers can buy any lifestyle product, movie ticket, food, bus or railway ticket through e-commerce at home.
“Credit card customers of different banks in Bangladesh now get various discounts on lifestyle, hotel, restaurant, furniture, electronics purchases at various merchant outlets.”
He also said that there is an opportunity to pay the principal in zero percent interest installments for different periods of three to 24 months.
In this case a customer gets the opportunity to pay without interest for 15 to 45 days.
He said credit card customers can withdraw cash at any time through card checks.
Bangladesh Bank says that the purchase of goods or services online through international credit card, hotel booking, sending foreign currency for education abroad and participation in training / seminars / workshops abroad can be paid.
Credit card benefits
• Fast transaction (advantage of purchasing goods at a higher price than the money in hand using the card without borrowing money from others)
• Reward Points (This is especially attractive for air travel, the benefits of credit card transactions)
• Free from the risk of carrying cash.
• More secure (credit card security is much more secure than conventional debit cards)
• of falling into debt trap Hidden or hidden expenses.
• The risk of increasing the debt burden on the wrong card.