LIC cards, the card division of Life Insurance Corporation (LIC) of India has established a goal of creating credit card sales worth Rs. 5 lakh in the next fiscal. If this target is achieved the company’s card sales will be half a million.
The company has a client base of 50, 000 within a year of its commencement of its operation.
LIC cards has a tie-up with Corporation Bank for the credit card business. Though the card is named as LIC but is really distributed by Corporation Bank. LIC has a stake of 26.34% in Corporation Bank.
As per the MoU, LIC will promote the card and collect applications, while proper checks and card management will be handled by Corporation Bank.
A senior Corporation Bank official said, 50, 000 credit cards have been distributed to the current existing LIC policy holders. The unpaid balance on these cards is estimated to be about Rs. 10 crore. The cards have been offered to the clients whose annual policy premium(s) exceed Rs 25,000-50,000.
While many credit card issuers are withdrawing from their credit card and portfolio division, LIC cards is adopting an aggressive tactics to attract highest client base. It is considering adding 3-4.5 lakh cards more in the next year, thus increasing the number of its card holders to over half a million.
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