Many banks are offering lucrative schemes to card holders in order to pare down their credit card exposure following a sharp increase in bad assets linked to them. Almost all major banks, including ICICI Bank and Citibank, are offering similar schemes but don't want to publicise them, which could increase the risk of more card users defaulting on regular obligations and opting for these easier settlement options.

"There are various structured payment plans that we've been offering. These limited schemes are worked out in consultation with the customer as an alternative repayment plan," said a senior ICICI Bank official, who did not wish to be named. A mail sent to the bank, however, remained unanswered till the time of filing this story. The scheme varies from bank to bank.

 So, if you have an outstanding loan of around Rs 2 lakh and are paying an interest as high as 18%, you can convert this into a regular loan, spread over a period of three years, where your interest rate may be as low as 12%. "We have a retentionoriented, assistance-based collections process, and if there is a genuine inability to pay, we work closely with customers to offer repayment solutions based on his or her cash-flows," said business manager cards, Citibank, Sandeep Bhalla.

Source: Economic Times By Dheeraj Tiwari Breathing Easy: Banks Offer Card Defaulters Easy Loan To Settle Dues