ICICI Bank has launched an equated monthly instalment (EMI) scheme on debit card purchases, making it the first of its kind facility.
All debit card holders, however, are not eligible for this facility. Only those with fixed deposits with the bank can avail of this scheme.
EMIs have been fixed at three, six, nine and twelve months, the private sector lender said in a statement issued on Tuesday.
Under the EMI facility, the bank will charge an interest rate of 13 per cent on debit card purchases that will be linked to the amount in fixed deposits.
Other banks offer EMI facility to their credit card holders on purchases.
"As we approach the festive season, we believe this initiative will empower over 22 million ICICI Bank debit card customers to buy products of their choice and pay in easy EMIs," ICICI Bank executive director Rajiv Sabharwal said in the statement.
The facility offers a three-pronged advantage to customers as they can leverage on their fixed deposits, earn interest while they shop and pay EMIs as well as earn reward points on transactions, the statement added.