Barclays Bank of Kenya has launched a Visa-branded credit card called Beba sasa na Barclaycard that enables cardholders to pay off their card debt in equal monthly installments over 12, 24 or 36 months instead of through lump sums or minimum monthly payments, an official from the Nairobi-based bank tells PaymentsSource.
Other credit cards the bank offers require minimum monthly payments, typically about 5% of the outstanding balance, if the holder does not pay off the balance in full.
“To switch to the monthly installments, cardholders will need to call the bank’s call centers,” he says. “All customers need to do is to advise Barclays within 30 days of the transaction their wish to switch to the installment plan.”
The interest applied annually on the installment will be much less than the 36% to 50% annual rates typically applied to credit cards by other issuers in Kenya. However, the official declined to disclose the rates for this service.
