Best Easy Payment Plan Credit Cards: Get 0% Interest On Your Repayments

Everyone knows making a purchase on your credit card that you can’t repay at month-end spells big trouble. But what if you could make a credit transaction that allows you to spread your repayments over the next few months or years, at no interest at all?

No, this isn’t a myth. In fact, such a feature may already be available on your existing card. It is called the 0% Easy Payment Plan (EPP).

What is an easy payment plan (EPP)?

An EPP is a repayment scheme that allows you to use your credit card to pay for a purchase and then repay the amount in instalments over the course of months or years.

What is 0% EPP?

A 0% payment arrangement is one which allows you to pay using the EPP at absolutely no interest charges for the entire instalment period.

How does it work?

• If you’ve made a purchase of RM12,000 using EPP with a 12-month repayment period; your instalment amount would be RM12,000 / 12 months = RM1,000 every month over the course of 12 months.
• By paying the instalments promptly and making sure you adhere to all terms and conditions, you would not be charged a single sen in interest during the entire period.

Note: Missing any monthly instalment payment when using the EPP will lead to additional interest charges!

At present, most major banks in Malaysia have this scheme available to their cardholders, though the terms and conditions may differ.

Instalment periods differ from bank to bank, and could be as low as three months up to 36 months or more. Generally, this payment scheme is applicable only for purchases made at selected partnering outlets.

What are the benefits?

From a consumer standpoint, this repayment scheme offers plenty of benefits, which include:

• The ability to pay for vital big-ticket items without incurring hefty interest charges over a period of time.
• The option to put the lump sum which would otherwise be used to pay off the purchase in full into a fixed deposit account, hence earning interest from the banks.

What are the things to look out for in an EPP credit card?

Like all other credit cards, features may vary depending on the card issuer or financial institution that you apply to. Before applying for a card, watch out for these features as they may not be universally applicable.

0% interest rate

In order to maximise savings, look for opportunities to apply for cards with 0% interest on EPPs. Always read the fine print so that you always know when the interest rate applies.

Flexible tenures

Some EPP cards offer extra flexibility, allowing you to stretch repayments even beyond the typical 24 months. Some might even offer 0% interest on longer tenures.

Applicable merchants

Banks typically have a list of merchants that participate in their 0% interest offerings. See if your favourite stores are part of the deal before applying.

Top easy payment plan cards

OCBC Easy Payment Plan

OCBC’s EPP offers customers interest-free shopping with a low one-time handling fee starting from 4% and flexible repayment tenure up to 20 months. For a 10-month tenure the fee is 6% and for a 20-month tenure you have a fee of only 7%. All your payments will have to be made in full and on time. Any unpaid amount will be charged with a tiered interest rate between 15%-18%.

Some good OCBC EPP cards include:

OCBC Cashflo Mastercard

• 0% Auto-Instalment Payment Plan and no annual fee for the first year, exclusively for new OCBC cardholders
• Minimum Monthly Income of RM 5,000
• 15% interest rate per annum

OCBC Titanium Mastercard

• Up to 12X OCBC$ on online and e-wallet spending. Also gain the opportunity to earn unlimited OCBC$ on all transactions
• Minimum Monthly Income of RM 5,000
• 15% interest rate per annum

Maybank EzyPay

All Maybank credit cards have the advantage of benefitting from the EzyPay scheme. Under this scheme, cardholders can enjoy up to 0% interest rate when they convert their purchase into affordable monthly instalments at selected stores. Check out the outlets displaying the “Maybank 0% EzyPay” sign. At these stores you can purchase pretty much anything using Maybank EzyPay Instalment Plan via your Maybank Credit card.

You can find a list of participating merchants here.

Some of the best Maybank cards to apply for EPP include:

Visa Infinite Card

• Up to 5 TreatsPoints from spent overseas, and exclusive dining, golf privileges
• Minimum Monthly Income of RM 8,333
• 15% interest rate per annum

\PETRONAS Visa Gold

• Up to 8x TreatsPoints on weekends and 5x TreatsPoints on weekdays for every spend at Petronas Stations
• Minimum Monthly Income of RM 2,500
• 15% interest rate per annum

Shopee Visa Platinum Credit Card

• Receive 5000 Welcome Shopee Coins after RM300 spend and enjoy up to 5x Shopee Coins for any spend on Shopee, dining, entertainment, and contactless payments
• Minimum Monthly Income of RM 2,000
• 15% interest rate per annum

GRAB Mastercard Platinum Credit Card

• Maybank Grab Credit Card rewards you for all your lifestyle daily needs i.e Food, Transport, E-Commerce, Up to 5 Grab Reward Points for every 1 Ringgit Malaysia spent
• Minimum Monthly Income of RM 2,000
• 15% interest rate per annum

RHB credit cards

RHB’s easy payment plan is known as the Smart Instalment Payment Plan and will usually require a minimum purchase of RM500 and maximum of 100% of cardmember’s available credit limit. However, no application is required to utilise this feature and no extra fees are charged. All the cardholder needs to do is present the card at an applicable merchant upon purchase.

You can find a list of participating merchants here.

Good cards to get include:

Cash Back Credit Card/-i

• Earn up to 10% cashback on all retail purchases from petrol to dining and groceries plus a free annual fee on your first year
• Minimum Monthly Income of RM 2,000
• 15% interest rate per annum

Shell Visa Credit Card/-i

• Enjoy cashback deals when you spend with your new RHB Shell Visa Credit Card/-i. Get 5% cashback on everyday essentials which include grocery, online spend, e-wallet reload, retail spend & utilities
• Minimum Monthly Income of RM 2,000
• 15% interest rate per annum

Rewards Credit Card-i

• Earn up to 10x reward points for Movie, Overseas,Online, Health, Insurance, Shopping & other Retail spend.
• Minimum Monthly Income of RM 2,000
• 15% interest rate per annum

HSBC credit cards

HSBC’s 0% instalment plan offers the usual 3 to 36 month tenures. However, it also allows cardholders access to over 2,000 participating merchants throughout the country, which is a relatively staggering amount of choice. In order to qualify for 0% interest rate, cardholders will need to make a minimum purchase of at least RM300.

A full list of participating merchants can be found here.

Credit cards to consider include:

Live+ Credit Card

• With HSBC’s Live+ Credit Card, you can spend on all the things you love and earn up to 8% cashback towards the things you’ve got your eye on
• Minimum Monthly Income of RM 5,000
• 15% interest rate per annum

TravelOne Credit Card

• Instant reward redemption with an extensive selection of airline and hotel partners, plus 6x complimentary airport lounge access per year
• Minimum Monthly Income of RM 5,000
• 15% interest rate per annum

Visa Signature Card

• Up to 8x Rewards Points on overseas and local spending with E-Commerce Purchase Protection coverage of up to up to US$200
• Minimum Monthly Income of RM 6,000
• 15% interest rate per annum

Platinum Credit Card

• Online, groceries & overseas spend earns up to 8x Reward Points for every RM1 on contactless spend. 5x Reward Points on Online which includes Groceries and Overseas
• Minimum Monthly Income of RM 3,000
• 15% interest rate per annum

CIMB credit cards

CIMB’s 0% Easy Pay scheme allows cardholders to shop and pay for their purchases in a monthly 0% instalment of up to 36 months at participating merchant outlets. CIMB’s offering is particularly useful for brand new electronics products. Just be aware that there is no grace or interest-free period when it comes to repaying your monthly instalments. As long as you make your payments in time, you can dodge being slapped with a hefty finance charge of 18% p.a. on your outstanding balance.

A full list of participating merchants can be found here.

Good CIMB EPP cards include:

Cash Rebate Platinum Credit Card

• Splurge online or spend on your daily needs and get rewarded up to 5% cash rebates on cinema, groceries, petrol, mobile, and utilities
• Minimum Monthly Income of RM 2,000
• 15% interest rate per annum

Travel World Credit Card

• Travel sooner than you think with your CIMB Travel World credit card. Earn up to 12x Airport Lounge Access
• Minimum Monthly Income of RM 8,333
• 15% interest rate per annum

CIMB Travel World Elite Credit Card

• Enjoy complimentary 12X shared access to selected Airport Lounges worldwide. Earn Up to 10X Bonus Points for every RM1 spent
• Minimum Monthly Income of RM 20,833
• 15% interest rate per annum

Travel Platinum Credit Card

• Earn up to 2X Grab Airport transfer, 5X Bonus Points for every RM1 spent, and up to 4X access to selected Plaza Premium Lounges worldwide
• Minimum Monthly Income of RM 2,000
• 15% interest rate per annum

If none of these cards fit your fancy, you can try using iMoney’s Smart Search Tool to find the perfect card for your needs.

Important things you should know about EPP

Many credit cards now come with a 0% EPP.  But watch out, as you may still end up paying interest if you don’t read the fine print.

Following are some important facts to check if you’re planning to utilise this feature on your cards to make a purchase.

1) Make sure it really is zero percent

An EPP facility means you pay absolutely no extras on your purchase. In practice, however, it is not uncommon (though not always applicable) for Malaysian consumers to be charged an upfront administration or installation fee by the merchants offering the said plan. Before activating the repayment facility on your purchases, make it a point to enquire with the merchant if such additional costs exist.

2) Make sure your purchase is subjected to zero interest rate

Despite what many people think, the zero interest repayment scheme usually do not cover everything. Most of the time, the banks have their own lists of participating merchants offering the repayment feature only for the cards it issues; and every merchant in turn, has its own terms and conditions binding the use of the repayment feature in its outlets.

Some cards only provide the 0% EPP with a minimum purchase amount of several hundred ringgit. Simply put, you wouldn’t be able to just walk into your favourite outlet and expect to make a purchase with the EPP facility, without first making sure that the outlet (i) does support the plan on your card, and (ii) does support the said plan for the specific amount of your intended purchase.

3) Late payment rules and other policies

When you sign up for the repayment facility, bear in mind that you are expected to service the instalments promptly and strictly, probably more so than a standard credit transaction. With most banks, failure to service your EPP instalments would result in:

• Automatic revoke of your 0% interest benefit (where you’ll end up paying the standard credit card interest rates at an average of 12.5% – 17.% p.a.), or
• Termination of your instalment plan (where you’ll be expected to settle the outstanding amount in full)

Additionally, note that some banks do charge a fee for early settlement of the outstanding amount, while others don’t. If early settlement is an option you may wish to take, it’ll be to your interest to check with your bank on this.

4) Influence on your spending behaviour

With a zero interest repayment scheme, the very convenience that enables you to make a vital purchase (such as buying a computer you absolutely need for your work) could also entice you to spend way beyond your means (such as buying the very same computer but at two specs higher than what you need).

The common pitfall when it comes to such a repayment plan is that most people tend to look at the smaller instalment amount rather than the larger full purchase amount. While RM10,000 for that unnecessarily large TV might sound way too expensive in a lump sum; you could still be enticed to make the purchase if you choose to evaluate the purchase based on RM500 per month for 20 months.

When making a purchase under such payment feature, make sure you always have the bigger picture (total price) in mind! If you made several purchases using the 0% EPP in a single month, the total monthly instalment may run into several thousand ringgit although individually, the instalments amounts may seem small.

How to sign up for EPP using your credit card?

How do you undertake this repayment facility using your card? It is actually simpler than you think.

1. First, look for stickers or signs on retail outlets indicating that they offer 0% Easy Payment Plans for your credit cards. Alternatively, look up the websites of your banks for the list of participating merchants offering this payment scheme.

2. Before making a purchase, check with the outlet on any terms and conditions you may need to adhere to. Some common ones include:

• The categories of items that can be purchased under this repayment facility
• The minimum purchase you need to make to be eligible
• The instalment periods you can choose for your plan
• Extra administrative or instalment charges you may incur to execute the plan (if any)

3. Once you’re satisfied with all the conditions binding the plan, make the purchase with your card as usual but make sure you indicate to the cashier than you’re paying using the 0% Easy Payment Plan.

4. If the plan is approved, your transaction would be authorised on the spot. Thereafter, just make sure you pay the instalment amounts promptly starting from the next bill! 

This article has been updated on December 10, 2024.