ICBC Interest Free Installment Payment Plan
ICBC offers a 0% credit card instalment payment plan called the Purchase IPP.
Key Features and Benefits
0% Purchase IPP
- Convert your ICBC card purchases worth at least S$500 into interest-free, monthly instalments.
- Spread your instalments over a period of up to 24 months.
- Low one-time processing fee.
- More flexibility to spend money.
- Applicable only to payments made in Singapore Dollars.
How It Works
How Your Instalments Are Split
- Only transactions with purchases of S$500 or above are eligible to be split.
- The instalment amount is split equally over the chosen tenure.
- The first instalment will reflect the portion of the split amount along with the one-time processing fee.
- In case the total amount cannot be split equally, the difference is usually charged to the first instalment.
For example, if the total payment amount is S$1,000, the period is 3 months, and the processing fee is 2%, the instalments will be split into amounts of S$334, S$333, and S$333 for the 1st, 2nd, and 3rd instalments respectively. The processing fee of S$20 (S$1000x2%) will be added to the first instalment of S$334, making your total first instalment S$354.
Other Important Points Regarding IPP
- For every monthly instalment paid, the bank releases your credit limit by that amount.
- If the first instalment is not paid in time, the late payment fee and corresponding interest are treated as normal outstanding dues.
- Defaulting on the second instalment leads to termination of the IPP.
- On termination, the entire IPP amount will be transferred to your normal credit card outstanding amount and will be payable immediately. Interest and late payment fee are applicable.
- There is no termination fee for early repayment.
The interest for the 0% Purchase IPP are as follows:
||Effective Interest Rate (p.a.)
Currently, applications made through internet/mobile banking are eligible for 0% processing fee for the 3-month repayment period.
How to Apply
- Download the application and complete it.
If you don’t have mobile/internet banking, you can apply at any of the ICBC branches using your employment pass or NRIC, and passport.
- The application must be submitted to the bank 7 days before the due date of the relevant statement payment.