Tinesh Bhasin in Mumbai | April 08, 2009 09:41 IST
Stung by ascent non-performing assets (15 per cent in some cases), several banks accept now started arising cards affiliated to anchored deposits.
ICICI Coffer [Get Quote], the better acclaim agenda issuer, has fabricated it codicillary for some of the acclaim agenda applicants, who do not accommodated the bank’s accommodation criteria, to accessible FDs beneath a arrangement alleged Anchored Drop Instant Acclaim Card.
Axis Coffer has additionally launched such a scheme. Other banks said this artefact was a allotment of their offering, but they were not blame it aggressively. Neither coffer capital to animadversion on the issue.
Ravi Subramanian, arch of cards at HSBC, said this artefact not alone secures the lending, but additionally allows banks to affair a acclaim agenda to a being who is contrarily not eligible.
In this scheme, banks ask applicants to accessible an FD annual with an auto-renewal facility. The minimum bulk is Rs 20,000 and the best Rs 300,000. The acclaim absolute on the agenda is called at 85 per cent of the FD amount.
The coffer again marks a affirmation on the absolute anchored drop amount. This agency the depositor cannot breach the FD as continued as he holds the card. Alone the absorption can be withdrawn.
If the cardholder fails to pay the outstanding bulk on the acclaim agenda aural 90 canicule from the date of the statement, the coffer has the appropriate to cash the FD and set off the acclaim agenda accuse adjoin it.
Some banks, however, acquainted such a arrangement did not accomplish faculty back best barter were afflictive advantageous about 50 per cent absorption on cards and accepting 8 to 9 per cent on anchored deposits.
The arch of acclaim cards at a adopted coffer said barter would adopt application the defalcation ability adjoin FDs instead of advantageous such aerial ante on cards. “Many banks are dabbling with this abstraction with a appearance to accretion their acclaim agenda base. But it makes faculty alone for low-end customers,” he said.
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