This bank will offer interest free money on a credit card

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Business

oi-Roshni Agarwal

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To boost its credit card business, the new era of Indian private sector IDFC First Bank on Friday launched 2 new credit card offerings.

This bank will offer interest free money on a credit card

This bank will offer interest free money on a credit card

In the first case, the bank will extend the interest-free cash on credit card for 48 days. And as part of the second offer, the bank will offer dynamic interest on the revolving credit. The first has to be a unique offering in the industry and, in fact, that cash advance is only a small fraction of overall credit card business. For example, last November, customers withdrew only Rs. 231.3 crore from ATMs, while slipping for Rs. 62,349.7 crore at point-of-sale terminals.

In a usual case, for each cash transaction, a fee of Rs. 250-450 plus an interest of 2.5-3.5% per month, applicable from the day of withdrawal until full repayment of the amount. And this interest is also taken on non-cash expenses, but here the interest-free period is appreciated unlike cash transactions.

“When you take out the customer, you take them for a credit limit and give a certain percentage of it in cash. This has always been positioned as an emergency feature. The industry has always tried to charge you both fees and interest on the cash to prevent people from taking it or making money out of it, ”Madhivanan said.

In addition, from a flat and fixed rate of 36 to 40 percent, it will be charged an interest rate of 9 to 36 percent on credit cards on a dynamic basis.

BonRetours.in

Article first published: Tuesday January 19th, 2021, 2:02 PM [IST]


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