Can I convert my purchases into EMIs, and what are the conditions, interest rates, and repayment tenures?
The terms and conditions for EMI conversion on a credit card vary by bank, but generally include:
->Transaction eligibility: Some transactions, like cash withdrawals, gambling, and fuel purchases, may not be eligible for EMI conversion.
->Credit limit: The credit limit is blocked for the EMI principal amount, but is adjusted as EMIs are paid.
->Fees: There may be a processing fee, interest charges, or pre-closure fee.
->Minimum amount due: The EMI is included in the minimum amount due on the monthly statement.
->Payment schedule: The first EMI is billed on the first billing date after the transaction date.
->Late fees: If the minimum amount due is not paid by the due date, late fees may apply.
->Pre-closure: If the loan is closed before the end of the term, there may be a pre-closure fee.
Changes: Changing the EMI plan may result in a pre-closure fee.
To convert the credit card purchases to EMII, you can either do it from within your bank’s app or call the customer care of the particular bank where you hold the account/credit card.
The terms and conditions, including the interest rate of the EMI conversion depend from bank to bank. You could convert your credit card spends to EMIs starting 1% interest rate per month and it could go upto 3.99% per month for specific variants of the card. There will be a processing fee as well as GST on the interest levied in the EMIs.
If you want information around a specific card, please mention the name of the card and I will be happy to provide details