NCB introduces credit card installment plan
National Commercial Bank Jamaica (NCB) is offering customers a break on interest rates for big-ticket purchases.
Credit card holders spending $100,000 or more on a single transaction will be given three months to a year to pay for the specific transaction, in fixed monthly instalments, with interest charges ranging from zero for a three-month repayment plan to 10 per cent for up to six months, and 25 per cent if the payments extend to 12 months.
The arrangement is applicable to holders of Lovebird KeyCard, Visa Classic or Visa Gold credit cards. Comparatively, interest rate charges on these cards are around 49 per cent.
The plan applies only to selected merchants, but currently covers transactions such as items such as furniture, appliances, medical expenses, tuition and hardware.
The bank says additional categories will be included over time.
Assistant General Manager for Payment Services Claudette Rodriquez says the payment plan was developed based on research findings that "lower interest rates and longer repayment periods were among the top three most desired features among existing and potential cardholders".
She says it is all about giving customers real choices.
"The introduction of this plan assists NCB with fulfilling its mandate of giving customers options that allow them more control over how they handle their financial obligations," Rodriquez said.
To trigger the plan, credit card customers must alert the bank to the purchase immediately after the transaction by calling through to its customer care centre.
NCB says only customers who have maintained their credit card account for at least 12 months will have access to the facility.
Only non-business transactions are eligible.