HDFC Bank plans EMI for credit cards

HDFC Bank is coming out with an equated monthly instalment facility for its credit-card users.

The bank, which had also slashed interest rates on its credit cards in January, has seen customers opting to transfer their balances from other cards to HDFC cards to avail of the low transfer rates.

Uma R Krishnan, country head, retail branch banking and credit cards, said the EMI facility would be made available by the end of this month.

This facility is being currently offered by Standard Chartered and ICICI Bank.

The EMI scheme can work either through arrangements between the bank and specific companies, wherein only certain products are available to credit card holders or it can work across products and companies with the customer calling up the bank and specifically listing out the purchase under the scheme.

“There could be schemes which could be also interest-free under the EMI offer that we are planning,” Krishnan said, adding that typical EMI schemes that banks offer on credit cards is restricted to 12 months.

“After a year the card comes up for renewal in most cases and, hence, the EMI offers are also only for 12 months” she said.

HDFC, which had brought down interest rates on its credit cards in January, has seen significant traction with 5 per cent of its cardholders opting for the low rates available on transfer balances from other credit cards.