Mumbai, Aug. 19: ICICI Bank today launched an equated monthly instalment (EMI) scheme on purchases made through debit cards.
The country’s largest private bank has tied up with Samsung India to offer this first-of-a-kind facility across 9,000 stores, including large format retailers, multi-brand outlets and standalone shops, for buying Samsung products such as mobile phones, tablets and consumer electronics.
ICICI said it would later add more brands under this facility.
The scheme, introduced ahead of the festive season, will enable customers to make high-value purchases via easy instalments.
“As we approach the festive season, we believe this initiative will empower over 22 million ICICI Bank debit card customers to buy products of their choice and pay in easy EMIs,” executive director Rajiv Sabharwal said.
This facility will, however, be available only to customers having ICICI Bank savings account and a fixed deposit of minimum Rs 10,000. Sources said customers would be able to purchase goods up to 90 per cent of their fixed deposit.
After purchasing a product, a customer will have to inform the store that he wants to use the EMI facility. A specialised chargeslip will be generated after the debit card is swiped. The slip will have specific terms and conditions mentioned for the transaction. The customer will have to sign the slip and give it back.
Interests will be deducted on the basis of a tenure of 3, 6, 9 or 12 months. The customer will not be allowed to break the fixed deposit till the end of the EMI.
Sources said the bank would charge an interest rate of 13 per cent on reducing balance. “However, the customer will still benefit as he will be a net interest gainer,” they added.
ICICI said the scheme would offer a three-pronged advantage to customers as they could leverage on their fixed deposits and earn interest while they shopped and paid in instalments besides earning reward points on transactions.
● Facility to be available to customers having ICICI Bank savings account and fixed deposit of minimum Rs 10,000
● Customers can buy goods up to 90 per cent of their fixed deposit
● Customers will not be able to break fixed deposit till the end
of the EMI