BPS Visa's rate down

JAKARTA (JP): Publicly listed Bank Papan Sejahtera has cut the interest rate on its Visa credit card from 3.25 percent to 2.7 percent a month.

The bank's card center vice president, Kemal Imam Santoso, said over the weekend the new monthly interest rate would be begin effective today.

But he said the rate cut would be valid for only six months after a credit card application was approved.

"If applications are approved in December 1997, customers will enjoy the 2.7 percent interest rate until June 1998," Kemal said.

After six months, the monthly interest rate will convert to the 3.25 percent level.

The interest rates charged by most credit cards issuers was between three and 3.5 percent a month, he said.

Kemal said Bank Papan preferred to lower its credit card interest rate than promising customers rewards but charging them high interest rates as other credit card issuers did. (jsk)