ICICI Bank customers can break their high value transactions of over Rs 50,000 into suitable EMIs directly on its internet banking platform to make their purchases more affordable, the lender said on Wednesday.
The facility is the first in the industry, the bank added.
It will be applicable on transactions up to Rs 5 lakh and will bear no additional cost on the customers.
Christened ‘EMI @Internet Banking’, the facility will enable customers convert their high-value transactions up to Rs 5 lakh into easy monthly instalments, ICICI Bank said in a release.
Customers can purchase gadgets or pay for their insurance premium or school fees in easy EMIs from their savings account using the internet banking platform, it said.
The bank has tied up with online payment gateways BillDesk and Razorpay to enable this facility.
To begin with, over 1,000 merchants in categories like online shopping portals, insurance, travel, education- school fees and electronic chains have been brought on-board.
The bank endeavours to partner with more payment gateway companies, merchants and add categories under this facility in the near future, ICICI Bank said.
Customers can select tenures of 3, 6, 9 or 12 months for the EMIs.
Sudipta Roy, Head- Unsecured Assets, ICICI Bank said: “We have observed that many of our customers undertake high-value transactions for payments of insurance premiums, school fees, purchasing electronics, or paying for vacations through the bank’s internet banking platform.
“Our latest offering of EMI @ Internet Banking brings in enhanced affordability for customers by providing them with flexibility of EMIs for high value transactions.”
Roy hoped the facility will empower millions of bank’s pre-approved customers to purchase or shop for their needs in contactless, instant, digital and secure manner.
This will help ICICI Bank customers easily finance their online purchases using convenient monthly instalment payments across merchants supported by BillDesk, said Ajay Kaushal, co-founder and director, BillDesk.
Khilan Haria, Head- Payments Product, Razorpay, said this EMI on internet banking feature will be a major value-add to the partner businesses by providing them with higher conversion rates and benefit end-consumers by making large payments easier and affordable.