We all know that now, besides conventional financial institutions, there are also Lite Lending -based financial institutions. Yes, the presence of the Lite Lending -based financial institution is certainly a breath of fresh air for a number of people who want alternative banking, especially those who want financial activities based on Islamic Lite Lending laws.
This was then also used by a number of conventional financial institutions to help launch their Lite Lending products to the public. Well, an interesting thing that will be discussed in this article is the matter of one of the products owned by Islamic financial institutions such as Islamic banks, namely Lite Lending credit cards.
Wait a minute, Lite Lending credit card? How come? Are there no flowers? Yes, like conventional banks, Lite Lending banks also offer credit card facilities that you can use to make non-cash transactions at various merchants that have collaborated with the Lite Lending credit card issuing bank.
Seeing the system between conventional banks and Lite Lending banks that are contradictory, it certainly feels rather difficult to realize that Islamic banks can have credit card products. But, yeah, that’s the way it is. In fact there is also a Lite Lending credit card.
What is the Lite Lending credit card product like? What is the difference when compared to conventional credit cards? Check out the following information.
What is a Lite Lending Credit Card?
In the world of Lite Lending-based banking, Lite Lending credit card products are known as Bithaqah al-I’timan. Functionally, this card has no significant difference from conventional credit cards. It’s just that again, this Lite Lending credit card in its application is still based on Lite Lending law.
So, you might be wondering what is the difference between a Lite Lending credit card and a conventional credit card if it is somewhat the same function. Here it is some important information related to Islamic credit cards that must be known:
1. Credit Card Issuers
The first thing that most distinguishes between Lite Lending credit cards and conventional credit cards is of course the issuer. Conventional credit cards are issued by conventional banks, while Lite Lending credit cards are issued by Lite Lending-based banks. Although, now a number of conventional banks are also expanding their wings by launching the Lite Lending version.
2. Lite Lending Credit Cards Using the Covenant System
As we know, in Lite Lending economic law, there is no such thing as an interest system. At conventional banks, the following penalty will be charged to customers when they want to pay credit card bills. As for Islamic credit cards, the interest system is not implemented. In exchange, loan conditions in the form of credit cards are arranged in a qardh contract and a number of other contracts.
3. Calculation of Credit Card Installments
The second distinguishing factor between Lite Lending credit cards and conventional credit cards is about calculating credit installments. On conventional credit cards, the main component usually consists of debt and interest.
Calculation of monthly fees on a Lite Lending credit card is somewhat profitable because it depends on the rest of your debt in that month. In contrast to the conventional bank’s interest system where the interest expense is based on all types of transactions that you made in the previous month. That way, the amount of installments per month will be smaller when compared to conventional banks.
4. Initial Penalty Determination
On Islamic credit cards, a fine system is also applied. However, the amount was determined at the beginning when applying for a credit card. This fine, which is then called tawidh, no longer calculates fines based on delays or the amount of the bill. Everything has been determined based on the type of card and due date, even the amount of information has been notified in advance.
5. Not Many Promos
However, unlike conventional bank credit cards that often hold promos, Lite Lending credit cards because they are based on Lite Lending law do not provide much promo benefits to their users. This is because the purpose of the use of credit cards is more devoted to transactions that are productive.
Lite Lending Credit Cards for More Productive Transactions
From the characteristics of the Lite Lending credit card above, it can be concluded that this card is really suitable for those of you who want a credit card with a lower installment fee. Also, for those who do not want to use credit cards to transact tertiary needs, but to things that are primary. So, back to your individual needs.