I made a large international purchase using my Kotak Privy League Signature Credit Card. Does Kotak Bank allow EMI conversion for forex spends? If yes, what are the interest rates and processing fees?
You can use your Kotak Privy League Signature Credit Card to transform any forex transaction into an easy EMI payment through Kotak Bank although specific rules apply.
Foreign purchases exceeding certain amounts can be transformed into installments through NetBanking and the mobile application and by contacting customer service representatives. EMI conversion services from Kotak Bank can only be accessed when your transaction exceeds specified amounts starting from ₹3,000 and rising to ₹5,000 although exact thresholds vary.
The EMI conversion interest rates Kotak Bank provides span from 12% to 18% per annum based on the selected tenure and customer profile evaluation. The transaction processing fee at Kotak ranges from 1 to 2 percent of the completed payment amount. The cost of EMI payments becomes more affordable as you choose shorter payment periods regardless of the initial purchase cost.
The 3.5% forex markup fee already exists on forex spends so converting them to EMI payments will result in additional interest costs for you. You should check the total cost that includes interest before conversion by comparing it to full payment of the transaction amount.
To perform an EMI conversion on your purchase you must complete the process within 30 days from the transaction date because banks set a time limit for this type of conversion beyond which they will not authorize it. Contact Kotak Bank customer care through NetBanking or speak with their representatives to access the latest rates alongside the available payment durations.