Quick Answer: How No Cost Emi Works On Credit Card?


Is there any charge for no cost EMI?

While availing the no – cost EMI facility, you will not have to pay any down payment, processing fee, or an interest. Will my bank charge an interest? Yes, the bank will charge you an interest. However, the interest that they charge will be given to you upfront as a discount at the time of buying the product.

How does the no cost EMI work?

The most popular way through which online e-tailers offer ‘ No – cost EMI ‘ is by offering discounts equivalent to the total amount of interest to be paid. Under the three-month EMI plan, the interest rate charged is 15 per cent and you would have to pay an interest amount of Rs 2,250.

How does HDFC credit card no cost EMI work?

EasyEMI Finance Charges will be applied on the ‘Loan Amount’ to calculate EMI. The credit limit on the HDFC Bank credit card shall be blocked to the extent of the full transaction amount. The credit limit will be released as and when the EMI is billed and paid for in subsequent months as per EMI plan.

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Is no cost EMI good or bad?

No – cost EMI can be a good option if the product you want to buy has a genuine discount. It is advisable not to opt for a loan to buy a product you don’t need, due to the temptation of zero – cost EMI. Also, if you get a loan to buy a product, don’t default on your EMI.

Can I get no cost EMI on debit card?

A. No Cost EMI is now available on select debit card EMIs. To check whether product qualifies for No Cost EMI, see EMI tenures on product detail page.

Is GST charged on no cost EMI?

The bank will charge GST on the interest amount. However, the interest to be charged by the bank will be passed on to you as an upfront discount at the time of your purchase, effectively giving you the benefit of a No Cost EMI. This discount excludes GST on interest amount that will be charged by your bank.

What is the benefit of no cost EMI?

A no – cost EMI offers you a plan where you can pay for a product or service in affordable monthly installments with zero interest. This means that you are only paying for the total price of the product, with no extra charges.

How is EMI calculated?

The mathematical formula to calculate EMI is: EMI = P × r × (1 + r)n/((1 + r)n – 1) where P= Loan amount, r= interest rate, n=tenure in number of months.

How is EMI deducted from credit card?

Your bank pays the entire amount at once at the time of purchase. This amount is deducted from the overall credit limit on your credit card. When you make payments through no-cost EMIs, the EMI amount each month is restored to your credit limit.

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Can I pay all EMI at once HDFC credit card?

Can I Pay All The EMI at Once at HDFC? Whether you have taken a personal loan, home loan, car loan, or any other loan product from HDFC, the bank allows you to repay the remaining EMIs at one go. Repaying all EMIs at once is known as pre-closing the loan account.

What is the credit limit of HDFC easy EMI credit card?

Eligibility Criteria

Condition Credit Criteria
Minimum Income HDFC Bank Salary Account Customer – ₹ 15,000* Others – ₹ 18000 Self Employed – ITR of ₹ 1.5 lakhs
Tenure 12-36 months (depending on product type)
Minimum Loan Amount ₹ 10,000
Maximum Loan Amount Durables: ₹ 5,00,000 LSP: ₹ 15,00,000

How can I convert my HDFC credit card payment to EMI?

You can convert billed Credit Card amount to EMI with HDFC Bank through PhoneBanking. NetBanking

  1. Log in to your HDFC Bank NetBanking account.
  2. Click the Cards tab.
  3. Next, under Credit Card, select the Transact, then the SmartEMI option.
  4. An unbilled transactions page will appear.
  5. Select Debit as your transaction type.

Why is EMI bad?

The consequences. EMI amount gets refl ected on monthly credit card bills along with other dues. So when you fail to pay your dues, you will be charged normal interest for non-payment along with a late payment fee and taxes.

Is no cost EMI a gimmick?

The marketing gimmick of NO Cost EMI attracts more customers for online retailer resulting in double profits generated by the retailer alone. Further, the Financial Institution charges ₹5,000 from the retailer (i.e. Interest cost which is approximately equal to half of the profit generated by the retailer).

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What is difference between EMI and no cost EMI?

The major difference is when you choose to pay for a product through regular EMIs, your EMI amount consists of the interest component and the processing fees. Simply put, regular EMI = Amount + Interest whereas No cost EMI = Only the amount.

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