Having a credit card is a significant benefit. Serving as a major medium of payment on purchases, it includes benefits beyond the convenience of making payments. HDFC Bank is a private sector bank in India offering varied types of credit cards in the Indian market. At loanbaba.com, you will learn about how to avail EMI for retail purchase using HDFC credit card.
These cards have offers related to various categories such as shopping, fuel, etc. among so many benefits, the main advantage of an HDFC credit card is the EMI option that converts a large value into smaller instalments of payments without large interest charges.
The HDFC credit card users can quickly turn their high-value purchases into smaller sections using EMI payment option. The monthly payment gets added to the monthly bill as an added transaction during the repayment tenure.
There are two ways of converting large transactions into small EMI payments. The first and the highly recommended method is to use your net banking account for transacting. Log in to your net banking account and choose the 'Dial an EMI' from the drop-down options. Select the card through which you prefer making the payment and further go by clicking on the relevant options. Confirm the conversion once done. The next option is to use your mobile app or dial the helpline number of the Phone Banking to complete the conversion.
Tenure option
There are different tenure options present to choose from. These are generally 6, 12, 24 or 36 months. Choose a term that suits you the best.
Minimum transaction value
A minimum transaction amount of Rs 2500 is mandatory. There is no upper limit until unless there is sufficient balance to pay your charges. One can convert online as well as offline costs into EMI payments. However, the option doesn't apply to the Gold and Jewellery purchases.
Processing fee
The user has to pay a one-time processing fee that is a fixed percentage of the total transaction amount changed into EMI. Additionally, service tax along with other government levies such as cess shall apply. The exact percentage varies for different cards.
Pre-closure charges
The bank gives you an option to close your loan before time and save your interest expense. However, the user incurs a penalty for pre-closure which is usually 3% of the outstanding balance in EMI account.
Turn-around time
One can convert the transaction into EMI within no time if it is through an appropriate channel. There is no waiting period for sanctioning or processing if you have authorised by way of authentication. The first EMI payment shall replicate in your immediate billing cycle.
