I’ve paid part of my credit card bill but still have a large outstanding balance. Can I convert the remaining amount into EMIs?
Yes, most of the Indian banks offer you to convert part of your credit card bill into EMIs depending on your eligibility. It is a handy choice in case you have already made a payment on part of your statement and wish to handle the remaining amount in lower monthly installments. This facility however varies on the policy of the bank, amount not repaid and the track record of payment on your part.
These are the key circumstances to consider:
-
Minimum Amount required:
To convert the EMI, most banks will have a minimum outstanding balance (typically, it is 2,000 to 5,000) requirement. -
Eligible Transactions Only:
This is not a blanket transaction. Banks can make it so that EMI conversions are only available to retail purchases or against specific merchant types. Withdrawals and outgoings are generally not included. -
Conversion Time limit:
The maximum time limit you have to ask your bank to convert it into EMI would be 30-60 days since you transacted or since you were issued with a bill. Any request that comes later may be turn down. -
Interest Rate and Tenure:
The interest on them ranges between 12-24 per cent p.a. depending on the bank and the tenure taken (it is generally 3-24 months). Certain banks can avail no-charge EMI on certain categories in the limited period of time. -
Processing Fee:
There could be a one time processing fee ( 99 to 500 rupees) depending on the bank.
What You Must Do:
-
You can have an EMI eligibility check on the mobile application or by contacting the customer service at your bank.
-
Do not pay the full outstanding where part of it is to be converted because conversion electively can occur only on unpaid amounts.
-
Check on the total interest cost to go on.