INTEREST-FREE PAYMENT HOLIDAY

WHAT IS IT?

As the name suggests, interest-free payment holiday, a facility offered only by credit cards, gives you more time to make a particular payment. During this period, you don’t need to pay the total amount due, the minimum amount due or any amount in part.

Currently, there is no charge for this facility.

HOW DOES IT WORK?

A majority of credit cards have a payment period of 45-55 days. In case you fail to pay on the due day, interest in the range of 22-44% per annum will be levied; the rate varies between banks.

Now, if you get a three-month interest-free payment holiday on your credit card, your bill will be generated after three months.

ENROLLING FOR THE FACILITY

There is no paperwork required to enroll for the offer. Usually, you get an SMS/email alert from your bank. If you decide to opt for the payment holiday, then simply delay paying your bill by that period. If you want to stay away from this, just keep paying your bills on time. However, interest will be charged on non-payment of earlier bills (those generated before this offer starts) even during the payment holiday period.

WHAT IT MEANS FOR YOU

Before signing in for the offer, call up the customer care and ask specific questions on processing charges, service tax and the due date of the offer.