Should you opt for festive offers on your credit card?


In an effort to play with the buzzing animal spirits this festival season, banks are offering plenty of cash back and back for purchases made through their credit cards. In addition to offers on co-branded cards (with e-commerce sites), banks also offer offers on other purchases (online or showroom).

Here, we give you an overview of some of the offers to help you plan your big ticket purchases wisely this festival season.

What’s on offer

For the ongoing festival sales on e-commerce websites, banks have offered their customers a blanket discount on all purchases as well as some other discounts and cash back for specific purchases. For example, Axis Bank (all credit cards) and ICICI Bank (on Amazon pay only ICICI Bank credit card) offer a 10% flat rate discount on all products purchased during the Great Indian Shopping Festival on . Even HDFC Bank customers can get a flat 10% discount on all purchases made on the website with the bank’s credit cards.

However, many of them come with varying conditions, such as a mandatory minimum transaction value and an upper limit on the value of the discount.

The discount on Axis bank cards is available up to 1,500 for a minimum transaction value of 30,000. For electronic devices purchased from the website, the discount is available up to 4,000 provided the minimum transaction is 80,000. In addition, for the purchase of your mobile phones, you can benefit from an additional 10% discount (up to a maximum of 1,250), for a minimum transaction of 5,000 on Amazon, using Axis bank cards. .

Besides e-commerce websites, banks also have lucrative deals on point-of-sale purchases like Croma, Reliance digital, Vijay sales, etc. in their online and offline stores. But it comes with terms and conditions.

For example, ICICI credit card holders get 5,000 off a minimum purchase of 1 lakh in Reliance Digital (valid through December 31, 2021, on weekend purchases only) or Vijay Sales (valid until November 20, 2021, daily).

The EMI decoy

SBI cardholders benefit from an instant 7.5% discount on their purchases at Sathya outlets for a minimum purchase of 20,000. Valid until November 10, however, the amount of the discount is capped at 3,500 per card account in this offer.

A similar 7.5% discount is also offered on purchases at Vasanth & Co outlets (up to a maximum of 3,000 per card, for a minimum transaction of 15,000) for purchases made through EMI ( 6,9,12,18 or 24 months of seniority).

For non-EMI transactions, the discount is limited to only 5 percent. However, before you take advantage of the highest discount, you should consider the additional interest on your EMI transactions. For EMI transactions opted for SBI cards, interest is charged at 14% on the monthly declining balance for EMI transactions at 3, 6, 9 or 12 months (interest at 15% for EMI 18 and 24 months).

Even fee-free EMI transactions that come with additional discounts come with additional fees. For example, HDFC Bank customers get up to 7,000 cash back when they purchase Apple products using the bank’s cards or through the no-charge EMI option. EMI transactions come with a convenience fee of 199 yen plus GST. Customers should therefore consider weighing these charges against the discount or refund offered.

In addition, a few banks also offer the option of converting certain purchases to IMEs instantly when purchasing at certain outlets. SBI cardholders, for example, can use an EMI option with durations ranging from 3, 6, 9 or 12 EMI months on purchases made at Croma stores. The advantage here is that unlike a traditional loan, no documents are required and no processing fees are charged to take advantage of this EMI offer. But if you intend to use the option to meet your short-term needs (for example, until the next paycheck), it may not be a good idea yet. This is because apart from the 14-15% interest rate, these EMI options come with a 3% foreclosure fee.

For connoisseurs of the brand

If you like certain brands, check out the rebates and cash backs offered by some banks on their credit cards. However, the downside is that these are mostly only available when converting your purchases to EMI.

For example, SBI offers its cardholders cash back rewards of up to 10-15% on select Bosch products, when purchased through the EMI option. The complete list of the range of products to which such an offer is applicable, as well as the amount of the discount are specified on the bank’s website. Similar offers are available on other electronics brands such as Samsung (up to 27.5%), Lenovo (₹ 5,000 flat rate refund on laptops) and Mistibushi Electric (5% refund on air conditioners), on EMI transactions carried out via SBI cards.

HDFC Bank also offers cash back and similar discounts to each brand on their Easy EMI or EMI purchases at no cost. Customers who choose these EMI options get up to 20% off the purchase of a television, home theater system, camera and lens, at Sony retail locations. .


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