When lending is too expensive, interest-free instalments are in demand

The model of buying in interest-free monthly instalments, offered by some credit card programmes, as well as by consumer loan companies, can be a solution to drive sales at a time when consumers are more cautious than ever about their spending.
"The zero interest credit cards definitely ease clients' purchase decision. We have had such partnerships with Garanti Bank and Credit Europe Bank for several years now, and about six months ago we introduced an offer that included 9 or 10 interest-free instalments, which had a positive effect on sales," says Adrian Cazu, manager of the Benvenuti stores, a clothing retailer with around eight million euros in annual sales. Raiffeisen Bank also tapped into this niche this year. Praktiker, the biggest DIY retailer on the Romanian market, bet in times of crisis on introducing a credit card with a three-month grace period in order to stimulate sales.