Andhra Bank has announced the launch of a rollover credit facility as part of its credit-card operations revamp. The Andhra Bancard Visa Gold Brand with global validity doubles the minimum base limit to Rs 30,000 on all Andhra Bancards with liberalised payment terms.
The rollover credit facility provides the cardholder an option to pay the minimum payment due (MPD) or any amount between the MPD and total payment due (TPD) before the due date, while the balance can be rolled over for payment in the next month. MPD is calculated at 5 per cent of the TPD as on the billing date, the bank said in a release.
If MPD of the earlier months remain unpaid, such unpaid amounts are included as part of this amount, the release stated.
As per the new facility, if MPD is not paid within the due date, late payment fee of Rs 100 plus service tax will be charged to the account. Those who pay an amount between the MPD and TPD, service charges on unpaid balance will be levied at 1.75 per cent plus service tax, the bank said.
If the credit cardholder does not pay any amount during the month or pays an amount less than the MPD, service charges on the unpaid opening balance will be levied at 2.5 plus service tax. Andhra Bank claims that the service charges levied by it will be the lowest in the credit card industry.
"Other card-issuing banks levying charges in the 2-2.59 per cent range on the purchases right from the day of every transaction. Free credit period facility is denied to customers who opt for deferred payment facility of those banks. Thus the customer ends up paying 4.5 to 5.90 per cent per month on the credit amount rolled over. However, Andhra Bank is offering the rollover facility without levying any finance charges," the bank said in its release.
On the introduction of Andhra Bancard Visa Gold Brand, the bank said that an opportunity will be given to existing Visa Gold card holders to convert their cards to have global validity.
