All Maybank credit cardholders can make use of the various credit card instalment payment plans offered by this bank. These plans help you make high-priced purchases at once and pay for them later in fixed instalments. The primary goal of these plans is to give you the opportunity to buy what you want, without worrying about paying back immediately.
Some plans can be used only at partner merchants and not at other outlets. Maybank offers three plans: 0% Instalment Payment Plan (IPP), Maybank FlexiPay and the Maybank Posh EzyPay.
The important details of these plans are given below:
The Maybank FlexiPay can be used at any store – even outlets that do not accept credit cards or are not partnered with the bank for an IPP. The key features of this plan are:
To help you understand the the split well, let us look at an example. Suppose you made a purchase of S$1,000 and want to split it into a 6-month IPP. So ideally the instalment amount should be 1,000 divided by 6, which is around S$167.
But the actual amount you have to pay the bank will be slightly more than this amount, as the bank will levy an administrative fee and sometimes an EIR (Effective Interest Rate) if your instalment payments are delayed. The instalment amount can be seen in the monthly credit card statement.
When you make an instalment purchase, the total transaction amount will be deducted from your credit limit. This means that you must make sure that you have sufficient credit availability on the card to make the purchase. If you do not have sufficient balance, the application for the instalment plan can be rejected by the bank. Or, you may have to pay the over-limit fee.
When you repay the amount in instalments each month, the credit limit is restored up to that amount. For example, let us say your purchase was worth S$2,700 and your credit availability was S$3,000. So after the purchase, your credit availability goes down to S$300. If the instalment you’re required to pay every month is S$300, then after the first payment, your credit availability would go up to S$600, and so on.
Disclaimer: These examples are for the purpose of understanding only. The actual numbers may vary.
With the 0% IPP, there is no applied interest rate. However, if the instalments are not paid regularly and fully every month, then the retail interest rate or penal interest rate usually charged on a credit card transaction will be applicable.
The interest rates for Maybank FlexiPay are as follows:
|6 months||10.43% p.a.|
|12 months||9.50% p.a.|
|24 months||5.98% p.a.|
Early cancellation fee: In case of FlexiPay, a termination fee of S$100 is applicable if you terminate the plan before the chosen tenure ends.
Administrative fee: Posh EzyPay charges S$30 per approved application.
Processing fee: Maybank FlexiPay levies a processing fee of 3% to 6%, depending on the tenure and the transaction amount.