Instabuys will present Stanchart cardholders with a specially designed, easy and flexible financing option to purchase merchandise valued over Rs 10,000, and is so structured that the customer pays interest only on the specific instalment-linked transaction. Such one-off deals will be delinked from routine credit-card transactions. The range of financing slabs under Instabuys has been pegged as follows: From Rs 10,000 to Rs 80,000 with a choice of 6, 9, 12, 18 and 24 month instalment options.

Stanchart head-card services (India) Harpal Duggal said, "Instabuys will offer the customer both the convenience of paying back in easy instalments, while retaining the credit card advantage of getting instant approval for their purchases without going through any tedious loan sanctioning procedures."

The new schemedoes not require customers to make any down payment unlike other equated monthly instalment financing schemes or submission of post-dated cheques. Approval of the credit limit is to be on a spot basis and the customer does not have to provide the bank with proof of his residence, income or photograph. Cardholders can also foreclose their instalments without attracting any penal interest.

Instabuys will cover a wide range of merchandise like consumer electronics, home appliances, scooters, motorbikes, computers and cellular phones, among others.

"Travel and holiday packages are also likely to be covered soon," Stanchart said in its press release.

Stanchart's new scheme is positioned as an alternative and a more cost-effective way of purchasing high-value goods through credit cards.

"While the revolving credit facility offered by all credit cards -- of paying 5 per cent dues each month -- also allows the customer the flexibility to pay in instalments, it is usually preferred when the pay-back period isthree-four months," Stanchart said.

Instabuys is the first instance of an issuer offering a facility to purchase high-value items with an extended credit period at a lower interest, which also delinks such transactions from the routine ones on the credit card. Use of the revolving credit facility on such transactions would have involved a higher interest-payout on the part of the card holder.

Stanchart's new scheme will be on offer to its credit-card holders in Bangalore right away. The bank's cardmembers in Chennai and Mumbai can avail of this facility from next month while Delhi, Calcutta, Hyderabad and Pune are to be covered by the first quarter of 1999.