Insurers hail Irdai's decision to stop loan re-payment via credit cards
In a recent order, the Insurance Regulatory and Development Authority of India (Irdai) has asked all life insurers to stop the acceptance of credit cards as a mode of re-payment of loans granted against insurance policies with immediate effect.
Experts are of the view that financial discipline is paramount and repayment of loans through credit cards should be avoided because, in case of default or a part payment, one will have to pay heavy interest rates to card issuing companies. Photo: Pixabay