A recent press release said that Development Credit Bank has launched Payless Credit Card which would benefit the banking customers were denied credit cards. These customers were not given credit cards because they did not belong to the secured salaried segment. Now DCB has brought in a solution by introducing Payless Credit Card, with which the customers are allowed to avail credit themselves while enjoying regular returns from the fixed deposits.
In his statement, Mr. Abhijit Bose, Group Senior Vice President and Head – Retail, MSME Assets and Cards business, Development Credit Bank, said that this card was launched basically focusing the needs of the micro, small and medium entrepreneurs (MSME) segment. This product can also be used by housewives, self-employed and so on.
The bank has done test marketing of the card in Bangalore and it wanted to position the product as credit history build – up card. It is estimated that there are around 35 lakh MSME units in the country and the bank considers this segment to be bulk for its payless credit card business.
Mr. Abhijit told that the customers who would like to make use of this service have to make a fixed deposit of Rs.25,000 from which 90 per cent of the deposit is loaded as credit in the card.
The repayment period ranges from 15 to 45 days. Any late payment would be charged an interest of 24 per cent which is normally 30 and 40 per cent. The fee on late payment, which would actually ranges from Rs. 400 – Rs. 500 for credit cards is made Rs. 100. This fee is charged in order to maintain the discipline of the customers regarding regular payment and in case of delinquency the bank would make adjustments with the depositors’ original deposits to avoid risks.
Most of the banks have announced special rates on home loan and car loan for the festival seasons up to December 2011.