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.
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