iPhone on EMI - Bharti Airtel

Bharti Airtel in association with VISA and SBI Credit Cards is offering iPhone 3G on an EMI deal. If you are a SBI card holder you can BUY the 16GB version iPhone for Rs 1,654 per month in 24 installments. You end up paying Rs 39,696 for a device costing Rs 36,000. SBI is charging 9.5% rate of interest [reducing balance] assuming if you promptly pay the installments.

However it is not very clear how will SBI handle the case if you are already carrying forward balance on your credit card. We recommend not to get into the trap as it is not worth it - Rs 40,000 for a phone ? However, if you are still tempted to BUY, then ask every detailed question before you BUY and get the same in writing because SBI is well known to change their verbal version of rules and regulations.

Dena Bank Credit Card JV likely

There is good news for Dena Bank customers on the credit card front. Dena Bank is in the finalization stages of launching a credit card with SBI. Dena Bank has been into the Credit Card business for over a decade now. However, the division doesn't have enough customer base yet. It is likely that the bank focused on its High Networth Individual customers for the issuance of credit cards.

Mr. Gairola, CMD of Dena Bank said,

We have not been very aggressive in this business. Our CC business has just 10,000 customers and we are confident of a tie-up with SBI Card to broaden our card base.

The deal being worked out is to take the process of card business as well as credit risk and a formula of profit sharing is being worked out.