Private sector lender Development Credit Bank has come up with a new credit card which allows benefits of credit as well as returns of fixed deposit.
Its new offering, the DCB PayLess credit card is linked to a fixed deposit account thereby bringing dual benefits to the customer.
According to Mr Abhijit Bose, Group Senior Vice-President and Head - Retail, MSME Assets and Cards business, Development Credit Bank, "We are launching this card primarily for the micro, small and medium entrepreneurs (MSME) segment, but even housewives, self-employed, and so on, can avail themselves of this product."
The eligibility criteria for the card requires the customer to set up a fixed deposit account of atleast Rs 25000 value.
Bose added that, "If they place a deposit with the bank, 90 per cent credit is loaded on the card."
The card would have a repayment period between 15-45 days. Interest rate applicable will be 24%.
Penalty for late payment would be Rs 100.