Can I Use a Credit Card to Purchase Stocks?

How do We Purchase Stocks?

Before investing, we transfer the amount from our bank account to our trading account & make the transaction.

Modes of Funds Transfer  to Demat Account

RTGS/NEFT/IMPS Using Payment Gateways Cheque/DD

Credit Cards to Purchase Stocks

As per SEBI, you cannot use credit cards for any financial investment. You can only use deposit funds or savings to invest in stocks.

Why Not Credit Cards?

To safeguard lenders’ and borrowers’ interests because out of 49 million credit card users in India, only 20% can repay the loan on time.

Risks Involved in Purchasing Stocks Using Credit Cards 

May Indicate a Lack of Financial Stability. Increase in Liability. Risk of Getting Into a Debt Cycle.