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Frequently Asked Questions
Q. What is a revolving credit?
Every accountholder is entitled to withdraw funds from his Smart Credit account up to the limit sanctioned in the account. This limit will get reduced each time the accountholder withdraws from the account to the extent of the funds withdrawn either by cheque or cash. The limit will increase on payment of the funds withdrawn. Therefore this credit line in the account will keep revolving depending on withdrawals and payments
Q. When will a customer get his Smart Credit Debit Card & Cheque book?
From the date the customer applies for a Smart credit facility, on meeting the required banks criteria, it will take 3-4 weeks to set up the account. The Debit card & PIN are sent separately. the cheque book & the debit card and should reach the customer within 4 working days from the date of account setup.
Q. How does the interest get calculated?
The interest to be paid by the customer is calculated only on the amount withdrawn/utilized and for the time period it is withdrawn / utilized till the time it is repaid. The interest is calculated on daily basis and charged to the customer on a monthly basis.
Q. How will a customer come to know about his account transaction and payment due details?
A customer can get his account details by the following 2 means:
- Statement of Account: Customer will get a monthly statement listing the transactions each month and the credit limit utilization. This will assist the customer in keeping a track of his / her finances. The statement will provide the customer with the amount to be paid and the due date. Customer needs to make the payment by the due date otherwise a late fee is charged. A mandatory 5% of the outstanding balance has to be repaid; customer has the option of carrying forward the rest of the balance to the next month.
- 24 Hour Phone Banking: Phone banking service allows the customer to just pick up the phone and take advantage of a whole range of banking services. The customer can make queries relating to the Smart Credit account such as details on outstandings, transactions, limit , payment due date , cheque collection boxes etc.
Q. Will the customer get monthly statements?
Yes, the customer will be provided with monthly statements.
Q. Will the accountholder have to pledge / hypothecate securities to avail of this facility?
The accountholder does not have to pledge any securities for availing of the limit sanctioned in the Smart Credit account. Smart Credit is a clean facility given to accountholders whose application has been approved.
Q. In which cities is Smart Credit available?
The Smart Credit Card is available in 5 cities: Mumbai, Delhi, Calcutta, Chennai, Bangalore.
Q. How is the limit on the Smart Credit account decided?
The Smart Credit facility and the limit of the facility shall be granted at the sole discretion of the bank based on the customer profile & the income documents. The set limit can be increased, decreased or blocked based on the bank's credit polices.
Q. For what period is the limit on Smart Credit account assigned for?
The credit line facility is given for a period of one year and can be renewed every year at the Bank’s discretion.
Q. Will there be any charges if Smart Credit facility is not used?
No - there are no charges if the Smart Credit facility is not used.
Q. Is there any pre closure penalty under Smart Credit?
No, there is no pre closure penalty. You are free to close the Smart Credit account whenever you want, by surrendering the unutilized cheque book and Smart Credit card and making payment of the entire outstanding.
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