Preeti Kulkarni, ET Bureau Jun 11, 2013, 08.58PM IST
(Available in two variants,…)
MUMBAI: Private sector lender Axis Bank on Tuesday launched a co-branded credit card essentially aimed at affluent Indians travelling abroad. The bank has rolled out the card in association with payment processing major MasterCard and Miles and More, international carrier Lufthansa's international frequent flyer programme.
Available in two variants, World and World Select, the card allows customers to accumulate reward points - or 'miles' - on spends made using the card. These miles can be redeemed against flight and hotel bookings, car rentals, at specified retail outlets and so on.
The programme allows you to accumulate six miles for every Rs 200 spent on the card. Also, in case of the premium version, you will be entitled to 15,000 miles at the time of joining and 4,000 when you renew your membership. The card comes with in-built card liability, personal accident and emergency medical covers. Another key offering is the concessional rate of interest on home loans. The bank offers cardholders a discount of 20 basis points on home loans, apart from waiving off 50% of the processing charges.
On the flipside, the joining fee for the World Select variant is quite steep at Rs 10,000, with a recurring annual fee of Rs 4,500. The World variant levies a relatively lower initial fee of Rs 3,500 and an equal amount as annual maintenance charges.
Upside: Those travelling abroad frequently will be able to collect points if they buy tickets using this card, in addition to the frequent flyer points offered by their airline. Also, points earned can be redeemed against car rentals and at retail stores, too, unlike other comparable cards that restrict reward offerings to flight and hotel bookings.
Downside: The card's membership fee structure - Rs 3,500 and Rs 10,000, besides the annual charges - means that only the affluent customers will be able to afford this card. The card seems expensive when compared to similar programmes offered by other banks, which also offer a better spends-to-rewards ratio.