Suggest ways to make grocery payment of around 50 lakh per month

[Divas_Garg]

i utilized 2 to 3 times of the limit of the card like for flipkart axis they gave me limit of 1.8 lakh i used 1.5 lakh in 15 days then repay it again used 1 to 1.5 lakh and then pay 70 % of last utilization so every time at the time of bill generation i remain to pay 30-40k

I also tried using flipkart cc but they continued to decline my transactions and then blocking the card for temporary basis citing security reasons

 

[bhavik886151]

I have applied for amex corporate credit card. They are saying limit will be around 30 lakh without any collateral

they ask for the turnover of the company and other documents ?
can you gave some details you follow to apply it and you get it or under process

 

[Divas_Garg]

W

Would not the bank close the cc for clocking that much on a personal cc.

Never experienced any such thing with Hdfc or Indusind bank. Infact my indusind bank RM was always ready to issue new credit card against fd. But from this FY own wards they are resistricting issuing pinnacle cards to business users

 

[Vasuki]

I have applied for amex corporate credit card. They are saying limit will be around 30 lakh without any collateral

God bless you

 

[Divas_Garg]

they ask for the turnover of the company and other documents ?
can you gave some details you follow to apply it and you get it or under process

Actually I make purchases at walmart. Amex has tied up with walmart to issue cards for high spenders on walmart wholesale. Under this I am getting the card

 

[Divas_Garg]

it

ROI must be higher

also credit card is about getting credit from banks at the zero interest rate for the 40- 50 days also he get interest on the FD so it is like taking Loan against Asset at zero interest rates

Yup… I receive repayment quickly for which I can book short term FD for 25 days to earn extra interest.

 

[Divas_Garg]

they ask for the turnover of the company and other documents ?
can you gave some details you follow to apply it and you get it or under process

They ask for audited financials along with audit report + other basic things for applying credit card + they will verify all ur sale and purchases with GST

 

[bhavik886151]

It's highly doubtful that the ROI might be high given that arbitrage typically involves exploiting small differences in prices or rates.

Furthermore, obtaining credit at zero interest is only advantageous when used to acquire an appreciating asset, which isn't the case here.

In reality, the notion of zero interest on the credit is flawed since it overlooks the opportunity cost of maintaining the amount in a Fixed Deposit. This opportunity cost includes forgoing potentially higher returns elsewhere, as well as sacrificing liquidity, which is limited with an FD and often incurring penal interest if withdrawn prematurely.

yes it look like opportunity cost lost if invest same amount else where but these return on FD is sure income for him .also he might not get that much limit on credit card in short period with out FD

as a business man he must think about it and apply these method which looks him correct also might be in a year he can get all other future cards with higher limit and he can get limit of 50-60 lakh across 10-12 different card with out any requirement of FD.

i get all my early stage credit card against FD and now I have 16 lakh limit with just 5 cards which i used now for the transactions

 

[sourpai]

Actually there is a limit on 1 pinnacle credit card per month. I earn reward points at the rate of 2.50% points which amount to 25000 points on spends of 10 lakh. Maximum points which can be redeemed in 1 month is only 25000 reward points. That’s why I have to use 5 separate cards to redeem approx 25000 RP every month on each card.

I wanted pinnacle that’s why made FDs with banks and they issued cards

By doing so much FD, you are at max earning 7%+2% = ~9%

Wouldn't same amount earn much more if you locked 50L in Mutual / Index funds instead of FD? Unless you already have 2Cr in equity and this 50L is 20% allocation to debt

 

[Divas_Garg]

By doing so much FD, you are at max earning 7%+2% = ~9%

Wouldn't same amount earn much more if you locked 50L in Mutual / Index funds instead of FD? Unless you already have 2Cr in equity and this 50L is 20% allocation to debt

It is around 7% for FD plus 12% for reward rate per annum. Totalling 19%. Sometimes the actual return is even more than this.
I come from family where I am not allowed to put such big amounts in mutual funds etc where return is not guaranteed. They are happy with less return provided return is guaranteed

 

[sidp]

True but still 5k pm ie 60,000 per annum is still a 1.3% return (on 45 L FD) and if you add the FD ROI + Rewards - Deductions + (hassles of keeping books clean and the pressure of IT scrutiny in future) still that is way less than the other options of investing the 45 L + without any hassles + lower taxation (10% / 15%)

But still I may be wrong of not considering some major leverage which the OP is aware about and I am not 🙂

By doing so much FD, you are at max earning 7%+2% = ~9%

Wouldn't same amount earn much more if you locked 50L in Mutual / Index funds instead of FD? Unless you already have 2Cr in equity and this 50L is 20% allocation to debt

As realization is fast in this method, they also invest in short term fd/p2p Lending. There is also rewards on cc bill/gst payments. it builds repayment history and helps in getting good amount of line of credit in cheaper rate. There magin is lower but cycle is much faster. There is also chance to write off certain expenses.

It will also helps in making connections if you want to dig deeper into business. He just need to employ some people, whose salary cost can be easily recovered as turnover increases. Plus wholeseller/ distribution network in india is highly efficient. (If only logistics were efficient). For 1rs difference in small SKU they will order multiple trucks full from Delhi to Bombay and once reached in destination they will dispose off in half a day.

Most people who do these things don't do it smartly. They cant see big picture, reselling few phones all they can think of. This is where proper education/ contacts helps a lot. Like the case of @Divas_Garg.

 

[Tay]

As realization is fast in this method, they also invest in short term fd/p2p Lending. There is also rewards on cc bill/gst payments. it builds repayment history and helps in getting good amount of line of credit in cheaper rate. There magin is lower but cycle is much faster. There is also chance to write off certain expenses.

It will also helps in making connections if you want to dig deeper into business. He just need to employ some people, whose salary cost can be easily recovered as turnover increases. Plus wholeseller/ distribution network in india is highly efficient. (If only logistics were efficient). For 1rs difference in small SKU they will order multiple trucks full from Delhi to Bombay and once reached in destination they will dispose off in half a day.

Most people who do these things don't do it smartly. They cant see big picture, reselling few phones all they can think of. This is where proper education/ contacts helps a lot. Like the case of @Divas_Garg.

Agreed but maybe for some the intangible benefits (of sound sleep without worrying about IT notice / filing concerns) >>>> tangible benefits (Deep connections / network / credit at cheaper rate)

 

[sidp]

Agreed but maybe for some the intangible benefits (of sound sleep without worrying about IT notice / filing concerns) >>>> tangible benefits (Deep connections / network / credit at cheaper rate)

Sure ! To each his own. I personally won't do it. But to some, it's worth the risk/effort.

You also need to consider that this doesn't require too much time commitment. Itd notice also doesn't deter people who knows all the provisions and maintain proper documents.

 

[Tay]

Sure ! To each his own. I personally won't do it. But to some, it's worth the risk/effort.

You also need to consider that this doesn't require too much time commitment. Itd notice also doesn't deter people who knows all the provisions and maintain proper documents.

True but are u sure about the time commitment part ?

 

[CardCraftsman.]

Is there any site/app where i can purchase mazza and other cold drink in bulk (at B2B pricing) using cc/amazonpay wallet?

 

[jk51]

I make purchases online of around 50 lakh every month for my business purpose. All these purchases are made through online payment and all transactions come under GROCERY category.

Currently I am using following cards for these payments:
1. Indusind bank pinnacle credit card
2. AU Zenith
3. SBI Cashback only upto 1 lakh

Earlier I used HDFC credit cards but now they have capped reward points for grocery at 2000 points per month. I don't want to use axis cards as they might block my account. Please suggest me credit cards or other ways to make these payments to earn maximum points without any capping. @TechnoFino

Thanks in advance.

Considering you have asked for grocery and that too business use case here is my suggestion.

If you live in a city which has Metro Cash n Carry or Best Price then you can go for respective brands co-branded card with Kotak. Both of them have cobranded tie ups with the bank. Not only you’ll get good limit considering your purchases but also the added benefit of availing GST ITC upon the same. There are loyalty bonuses as well from respective stores so that’s additional. Beats anything out there!!

 

[imdjay]

Considering you have asked for grocery and that too business use case here is my suggestion.

If you live in a city which has Metro Cash n Carry or Best Price then you can go for respective brands co-branded card with Kotak. Both of them have cobranded tie ups with the bank. Not only you’ll get good limit considering your purchases but also the added benefit of availing GST ITC upon the same. There are loyalty bonuses as well from respective stores so that’s additional. Beats anything out there!!

Kotak had been banned from issuing new cards.

 

[Hemang]

I dont know what is the arbitrage return he is getting.

But if its not much then the FD rate + rewards + arbitrage - deductions < ROI by investing the FD amount elsewhere

bhai spends me arbitrage aur deductions kya hain ?

 

[jk51]

Kotak had been banned from issuing new cards.

As of now need to probably check for offline mode onboarding for existing customers which HDFC did when it was banned. Online and mobile applications are banned for sure.

 

[Hemang]

It is around 7% for FD plus 12% for reward rate per annum. Totalling 19%. Sometimes the actual return is even more than this.
I come from family where I am not allowed to put such big amounts in mutual funds etc where return is not guaranteed. They are happy with less return provided return is guaranteed

bhai 12% ka reward rate kese calculate kara apne, ek baar batana bhai, hisab samjh sa ni aa rha hai