National Commercial Bank (NCB) has introduced a zero per cent interest rate plan on credit card balances up to three months as competition heats up among the card providers.

The bank, in a release on Friday, said that it will also be applying low interest rates to credit balances up to 12 months to promote greater financial flexibility when customers spend $100,000 or more on a single transaction using the Lovebird KeyCard, Visa Classic or Visa Gold under its new card credit instalment plan.

“Last year we commissioned research which found that lower interest rates and longer repayment periods were among the top three most desired features among existing and potential cardholders.

“The credit card instalment feature allows us to meet both these wants as it offers interest as low as zero per cent and up to 12 months to pay at competitive rates,” said Claudette Rodriquez, Assistant General Manager, NCB Payment Services.

According to Rodriquez, the benefits are customer-centred and are the next cutting-edge step in making finances personal again. Customers who satisfy the required conditions can purchase ‘big-ticket’ items, including furniture, appliances, medical expenses, tuition and hardware, and at the same time, enjoy flexible repayment at low interest rates for as long as 12 months, she noted.

“We are certain that customers will appreciate this plan as it only serves to make things easier for them. Having an instalment plan means customers will be able to clear their debt through fixed monthly payments over their preferred time frame” Rodriquez continued.

Expectations are that the new instalment option will improve customer satisfaction, while further setting NCB apart from competitors.

In May, NCB revised its credit card interest rate structure from 49 per cent across the board to a tiered structure under which credit card rates are determined in accordance with each customer’s internal credit score. The bank noted that the decision was in an effort to promote better credit management.

It meant, however, that customers with poor credit ratings would face credit card rates as high as 51.9 per cent. The new credit card plan could offset some of the increased expense to customers.