BRAC Bank's EMI facility fuels growth in the country's furniture sector

Mahiul Islam

As a key player in the financial sector, BRAC Bank is dedicated to providing customer-centric services to  ensure accessibility and affordability.

In an exclusive interview with The Business Standard, Mahiul Islam, Head of Retail Banking at BRAC Bank, sheds light on the bank's innovative approach to enhancing customer experience through its EMI facility for furniture purchases. 

Mahiul discusses the details of the EMI facility, its impact on the furniture sector, and the evolving landscape of digital transactions in Bangladesh.

Does BRAC Bank offer an EMI facility to credit card customers for furniture purchases? Which furniture brands are covered by your EMI, and do all companies receive the same benefits?

At BRAC Bank, we prioritize Customer Centricity as one of our core business strategies. In line with this commitment to providing customer-friendly services, we offer EMI facilities for furniture purchases from some of the best furniture companies in the country. These include renowned brands such as Hatil, Akhtar Furniture, Brothers Furniture, Nadia Furniture, Navana Furniture, Regal, Hi-Tech, Otbi, and many more. Our customers can enjoy the convenience of purchasing furniture at 0% EMI for a period ranging from 3 to 36 months, depending on the specific company.

What is the percentage of interest that customers have to pay when using the EMI facility, and over how many monthly installments is the EMI option available?

BRAC Bank credit card customers benefit from an interest-free EMI facility known as PayFlex. This service allows customers to purchase products from various brands on EMI for up to 36 months at 0% interest. With over 1,100 partner merchant outlets nationwide, this long-term payment facility empowers customers to make purchases with ease and flexibility.

How is the demand for EMI for furniture purchases this year compared to last year?

Compared to the previous year, there has been a noticeable increase in customer demand for availing EMI benefits for furniture purchases this year. Particularly during major festivals like Eid and Puja, we observe a special surge in customer interest in utilizing EMI for furniture purchases. The overall consumer interest in purchasing furniture through EMI facilities has remained consistent, as observed in the previous year.

From which professions customers show more interest in availing EMI benefits for purchasing furniture?

The majority of our credit card customers belong to the middle class and upper-middle-class categories, primarily comprising job holders. Therefore, individuals in these professions are more inclined to avail themselves of the EMI facility for furniture purchases. However, it's worth noting that people from various professions express a keen interest in leveraging EMI benefits for furniture purchases through credit cards.

Are there any difficulties for customers in availing EMI?

No, there are no difficulties for customers in getting EMI. In fact, BRAC Bank credit card customers can automatically enjoy the 0% EMI facility without the need for manual form filling. This seamless process is applicable at both online platforms and POS machines. This makes it  a pleasant experience for our credit card customers.

What role does the EMI facility play in the expansion of the country's furniture sector?

Bangladesh is advancing towards becoming a Smart Bangladesh, with an increasing preference for card-based transactions over cash transactions. The furniture sector is no exception to this trend. Given the naturally higher cost of furniture, making a one-time payment is challenging for many individuals. The EMI facility provided by credit cards allows customers to pay in installments, making furniture purchases more accessible. This facility has played a significant role in expanding the furniture sector, reaching both urban and rural areas across the country.